Square (NYSE:SQ) is reporting Q2 earnings on August 5. As always, I will recap what happened with Square in this quarter. We're going to take a look at its Q1 financial numbers, the recent acquisition of Crew, and the new Bitcoin platform that Jack Dorsey has announced. You can find the video below. 

Earnings recap

In Q1, Square reported total net revenue of $5.06 billion versus an estimated $3.36 billion and earnings per share of $0.41 versus an estimated $0.16. The current estimate for this quarter is for earnings per share of $0.30. I expect Square to beat earnings across the board due to the economy's reopening, which will help the seller side of the ecosystem.

Gross profit of $964 million was up 79% year over year. The company reported adjusted EBITDA of $236 million, seller gross profit of $468 million, up 32% year over year, and Cash App gross profit of $495 million, up 171%. 

What happened

Since the start of the quarter, Bitcoin's price has gone down close to 50%. Square doesn't really make that much of a profit from Bitcoin. Last quarter Bitcoin's gross profit was only $75 million, or approximately 2% of its revenue. What could affect Square in a negative way is the Bitcoin it holds on its balance sheet. Bitcoin is subject to impairment losses if the fair value of Bitcoin decreases below the carrying value during the assessed period.

Last week, the company announced it has acquired Crew, a frontline employee platform for consolidating and streamlining the day-to-day operations of hourly workforces. Think of it as Slack but designed for workers who are always on the go. Another great addition to the Square ecosystem. 

The day after the Crew announcement, Jack Dorsey tweeted that Square will open a new business focused on creating an "open developer platform" to make it easier to provide noncustodial, decentralized financial services. That will be Square's fourth business, joining Seller, Cash App, and Tidal.

And lastly, yesterday Square launched Square Banking, a suite of financial products to help small business owners easily manage their cash flow and get more out of their hard-earned money. Another step for Square toward being the next-gen bank for everyone. 

For more insights check out the video below. 

*Stock prices used were the closing prices of July 20, 2021. The video was published on July 20, 2021.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.