square parent roadblock (mint) reported June quarter earnings and revenues that were down from the previous year but beat estimates. SQ’s stock fell with the absence of two other financial metrics, operating profit and total payment volume.
San Francisco-based Block reported second-quarter earnings after the market closed Thursday. The results included the recently acquired Australian-based consumer lending startup Afterpay.
“It’s the second consecutive quarter missing from gross earnings as well as GPV (gross payment volume), which likely reflects SQ’s end market consumer/merchant profile, which is struggling during the current high inflation environment,” said Moshe Katri, analyst at Woodbush. Note to customers.
Earnings squared was 18 cents per share on an adjusted basis, down 72% from the same period last year. Analysts had expected earnings of 16 cents per share.
Also, Square said revenue fell 6% to $4.4 billion as Bitcoin cash app transactions fell. Analysts expected revenue of $4.33 billion.
Square’s stock fell 5.8% to 84.45 in extended trading stock market today. SQ stock has risen in seven consecutive trading sessions heading into Square’s earnings report.
SQ Inventory: Payment volume misses estimates
Financial analysts also look at operating profit as a key metric for SQ stock. Operating profit came in at $1.47 billion, up 29%, against estimates of $1.495 billion.
Total payments from merchant customers increased 23% to $52.5 billion, versus estimates of $53.187 billion.
Additionally, Cash App’s gross profit increased 29% to $705 million. Excluding postpaid, Cash App’s total earnings increased by 15%.
The company said earnings before interest, taxes, depreciation and amortization, or EBITDA, were $187 million. Analysts estimated $140 million.
“Total profit is $1.47 billion, lost $20 million,” Jefferies analyst Trevor Williams said in his note to clients. “But EBITDA outperformed by $50 million, with overruns in Afterpay and Seller (the segments).”
Amid the Afterpay acquisition, Square’s transaction and loan losses increased 225% year-over-year to $157 million.
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