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.
Read management/analysts’ comments on Square’s Q3 2021 results
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.
