Gross Payment Volume (GPV) improved 30% to $21.4 billion, aided by continued contribution from large sellers (sellers that process over $125,000 a year). For the first time in the company’s history, large sellers’ contribution stood at 50% of GPV, helped by solid growth in Caviar and Cash App. A growth in large sellers will partly also be spurred by Square Register and Square for Restaurants platforms.
During the third quarter, analysts expect Square to report earnings of 11 cents per share, on a 61% improvement in the top line. The GPV is also seen to improve as analysts expect the company to attract more large sellers. An increase in the large-seller component in the total GPV is seen as a financially healthy condition for Square.
Separately, Square’s subscription and services-based revenue will likely get a boost from its recent acquisitions of Weebly and Zesty. The San Francisco, California-based company also expects its Square Solutions Partner Program, launched last quarter, to improve subscriber base in Q3.
During the prior sequential quarter, revenue from subscription and services soared 127%. During the first quarter, the growth was pegged at 98%. Market observers feel the growth rate in the third quarter will be in par with Q1 and Q2.