Square reported second quarter financial results that beat estimates, with revenues rising across the business — including its profit from enabling Bitcoin trading on its Cash app.
The payments company posted a Q2 net loss of $6 million, or a penny a share, compared to a net loss of $16 million, or four cents a share, a year earlier.
Square’s Non-GAAP earnings rang up at 13 cents a share on revenue of $385 million, up 60 percent over the same quarter last year.
Wall Street was looking for earnings of 12 cents a share on revenue of $367.6 million.
Square’s gross payment volume (GPV), a key metric for the payments company, came to $21.4 billion, an increase of 30 percent from the same period a year ago. GPV from larger sellers, defined by Square as merchants generating more than $125,000 in annualized revenue, grew 42 percent year over year, attributing 50 percent of GPV for the quarter.
Transaction-based revenue was $625 million, up 30 percent year over year. Square also noted that made $37 million by supporting Bitcoin trading on its Cash App since December 2017.
Subscription and services-based revenue, which includes the company’s lending service Square Capital and food delivery business Caviar, was $134 million, up 127 percent from the second quarter of 2017. Growth was driven primarily by Instant Deposit, which had volume of $4 billion. Hardware revenue was $18 million, up 78 percent from a year ago.
For the current quarter, Wall Street is expecting earnings of 13 cents a share with revenue of $384.5 million. Square responded with a Q3 earnings guidance between eight cents and 10 cents a share with revenue between $407 million and $412 million. Its share slipped a little more than one percent after hours.