Square beats by $0.18, beats on revs
- Reports Q3 (Sep) earnings of $0.34 per share, excluding non-recurring items, $0.18 better than the S&P Capital IQ Consensus of $0.16; revenues rose 139.6% year/year to $3.03 bln vs the $2.08 bln S&P Capital IQ Consensus.
- Transaction-based revenue was $925 million in the third quarter of 2020, up 13% year over year, and transaction-based gross profit was $403 million, up 35% year over year.
- Transaction-based gross profit as a percentage of GPV was 1.27% in the third quarter of 2020, which was up 22 basis points year over year and down 2 basis points quarter over quarter.
- Subscription and services-based revenue was $448 million in the third quarter of 2020, up 60% year over year, and subscription and services-based gross profit was $381 million, up 76% year over year.
- In October, Seller delivered positive revenue and gross profit growth year over year. Seller GPV was up 8% year over year, which improved modestly compared to year-over-year results in the third quarter.
- Cash App ecosystem Gross profit growth in October moderated compared to the third quarter, driven by a decrease in transaction volume per active customer. We believe this was partly a result of the end of government stimulus programs and unemployment benefits at the end of July, as stored funds in Cash App have decreased since July. We recognize Cash App growth may not sustain at the same levels during the remainder of the fourth quarter.