Square Q2 Profit Tops Estimates; DoorDash To Acquire Caviar

(RTTNews) - Square (SQ) reported second-quarter adjusted net income per share of $0.21, an $0.08 improvement year over year. On average, 34 analysts polled by Thomson Reuters expected the company to report profit per share of $0.16, for the quarter. Analysts' estimates typically exclude special items. Adjusted EBITDA was $105 million, up 54% year over year.

For the second-quarter, the company posted a net loss of $7 million compared to a net loss of $6 million in the second quarter of 2018. Net loss per share was $0.02 compared to a net loss per share of $0.01. Excluding the effect of Eventbrite, net result would have been break-even per share.

Second-quarter total net revenue was $1.17 billion, up 44% year over year. Adjusted revenue was $563 million, up 46% year over year. Analysts expected revenue of $557.07 million, for the quarter. In the second quarter, the company processed $26.8 billion in GPV, up 25% year over year.

Operating expenses were $467 million in the second quarter of 2019, up 47% year over year.

For the third-quarter, the company projects adjusted EPS in a range of $0.18 to $0.20; and adjusted revenue of $590 million to $600 million. Analysts polled by Thomson Reuters expect the company to report profit per share of $0.22 on revenue of $598.96 million.

Separately, DoorDash, a last-mile logistics platform in the U.S., announced it has reached agreement with Square to acquire Caviar, Square's Food-Ordering Platform, for $410 million in cash and DoorDash preferred stock. DoorDash is currently integrated with Square for Restaurants point of sale.

Jack Dorsey, CEO of Square, said: "We are increasing our focus on and investment in our two large, growing ecosystems—one for businesses and one for individuals. This transaction furthers that effort."

Shares of Square were down more than 7% after hours.