Square, Inc. (NYSE: SQ) reported weaker-than-expected revenues for the third quarter of 2021, though the top-line grew by 27%. Adjusted earnings increased but missed estimates by a penny. Shares of the digital payments company traded lower in premarket trading on Friday, after closing the previous session lower.
Third-quarter earnings, adjusted for one-off items, rose to $0.37 per share from $0.34 per share in the comparable period of 2020 but fell short of Wall Street’s forecast. On an unadjusted basis, the company reported a net income of $0.1million, which is sharply lower than last year’s profit of $36.5 million or $0.07 per share.
Gross profit was $1.13 billion, up 43% from the prior-year quarter and up 51% on a two-year CAGR basis. Driving the earnings growth, total revenues climbed 27% year-over-year to $3.84 billion. Market watchers were looking for a bigger increase. Excluding bitcoin, net revenue increased 45%.
Square Invoices, the all-in-one invoicing software, registered strong growth and processed around $12 billion in gross payment volume. During the quarter, the company launched Cash App Pay, thereby facilitating integration between the Cash App and seller ecosystems.
The company’s stock traded lower on Friday morning, extending the recent weakness, after closing the last session at $242.48. It has gained around 25% over the past twelve months.
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