In this video, I will be going over Square's (SQ 0.17%) fourth-quarter earnings report, and explain why it disappointed me.
Square's Q4 EPS (earnings per share) was $0.32 compared to analyst predictions of $0.24, with revenue of $3.16 billion beating estimates of $3.09 billion. The company also announced that it invested another $170 million in Bitcoin, which now constitutes approximately 5% of the total cash and equivalents on Square's balance sheet.
Notably, Cash App keeps growing; it generated gross profit of $377 million, up 162% year over year. Square did show that it can acquire customers for less than $5 each (which is unseen in the fintech world). Its seller side also grew year over year, which is impressive, since it was hit particularly hard by the pandemic. So Square might be a good recovery play.
