Block (SQ 0.49%) is reporting Q4 earnings on Feb. 24. So as always, I will recap what happened with Square in this quarter. We're going to have a look at its Q3 numbers and some of the company's activities during the quarter. You can find the video below, but here are some highlights.
- Square officially launched in Spain after a successful early access program.
- Square sellers can offer buy now, pay later through Afterpay now that the acquisition is complete.
- In Q3 the company reported total net revenue of $3.84 billion, up 27% year over year (YOY), and missing estimates of $4.48 billion.
- Gross profit was $1.13 billion, up 43% YOY and up 51% on a two-year compound annual growth rate (CAGR) basis (which is a better comparison to show how the long-term trend will continue post-COVID).
- Seller gross profit grew 48% YOY to $606 million and 29% on a two-year CAGR basis. I expect this trend to continue as the economy goes back to normal.
- Cash App gross profit grew 33% YOY but was down quarter over quarter to $512 million and 104% on a two-year CAGR basis.
- The company provided some insights for the month of October. It expects strong gross profit growth for the Seller and Cash App ecosystem year over year and on a two-year CAGR basis.
For the full insights, do watch the video, consider subscribing, and click the special offer link below.
*Stock prices used were the closing prices of Feb. 18, 2022. The video was published on Feb. 22, 2022.
