Square's (NYSE:SQ) business continued its strong momentum in the second quarter, as the company reported yet another quarter of accelerating revenue growth and management increased its top-line outlook for the full year again.
Of course, investors have come to expect exceptional results from the financial technology company. Square stock's mind-boggling 180% rise over the last twelve months means the pressure is on for the company to keep delivering strong growth across its business, as it executes on the growth opportunities in front of it.
Fortunately, there's good reason to expect more strong growth from Square. And two of those reasons are evident from looking at the company's recently launched products: Square Register and Square for Restaurants.
Square Register is resonating with sellers
Announced late last year, Square's latest point-of-sale device -- Square Register -- is still new to the market. And investors are still learning how it is contributing to Square's business. While it's become increasingly clear the device is helping the company attract larger sellers, management provided some extra insight about the device during this earnings call.
Square CFO Sarah Friar said Register, which is the company's priciest POS device yet, is appealing to "sellers of all sizes" due to being a better experience overall for customers:
What they loved is the customer display. We hear that over and over again. I think it's a good example of when we build a product, we want it to highlight our seller. It's not about Square. It's actually about their business.
As Square's first POS device with two displays -- one for the customer and one for the seller -- it seems to demonstrate incremental demand for a device that gives customers a better experience.
Friar added that the device does generally attract larger sellers, with an average gross payment volume (GPV) of about $300,000 for sellers using Register.
Square for Restaurants is a winning product
Continuing its momentum in launching new products and services, Square launched an entirely new platform aimed at restaurants earlier this year. Aiming to streamline both front- and back-end operations, the product already looks like a major success.
Consider that an impressive 60% of new Square for Restaurants customers are self-onboarding, highlighting both the platform's user-friendly setup process and its ability to attract new customers without significant sales efforts.
Square CEO Jack Dorsey explained why this is noteworthy:
This is rather unusual in the industry. Typically, restaurants go to the point-of-sale provider and they need help to set everything up. That includes their table map, all the menus, basically all the operations that they need to focus on to run the restaurant. They actually need a third party to help them out. So, the ability for a restaurant to take that on and self-onboard and do all their menus, do all their table layouts with our software is pretty awesome because it creates efficiencies.
Another reason for investors to be bullish on Square's latest platform is that it's pulling in some impressive customers. The average restaurant seller on the new platform boasts GPV above $650,000, Dorsey said.
These are just two of Square's more recent product launches that look like big hits. But the company has launched a range of successful products since 2014, including Square Capital, a payroll service, Virtual Terminal, and the Cash App. With a track record like this, it's likely that Square has more promising new products and services on the horizon.