Square will also stand beneficial from the growing mobile initiatives after the launch of its in-app payments software development kit. This will enable developers to process payments with Square through their own mobile apps. The company’s bitcoin revenue will continue to be benefited by the well-performing CashApp.
Analysts expect the company’s earnings to climb by 33.30% to $0.08 per share and revenue to jump by 55.90% to $478.26 million for the first quarter. In comparison, during the previous year quarter, the company reported a profit of $0.06 per share on revenue of $306.82 million.
Square has surprised investors by beating analysts’ expectations in the three out of the past four quarters. Traders believed the company to report upbeat results for the first quarter. Majority of the analysts recommended a “strong buy” or “buy” rating while expecting the stock to reach $83.33 per share in the next 52 weeks.
For the fourth quarter, Square reported a wider loss due to higher costs and expenses. Total net revenue soared by 51% year-over-year helped by a 27% jump in transaction-based revenue and a 144% growth in subscription and services-based revenue. GPV for the quarter was 23% higher at $28 billion. Subscriptions and services-based revenue were primarily driven by Instant Deposit, Cash Card, Caviar and Square Capital offerings.
Also read: PayPal Q1 earnings results
For the first quarter, the company had expected total net revenues in the range of $918 million to $938 million and net loss in the range of $0.12 to $0.10 per share. Adjusted earnings were anticipated to be in the range of $0.06 to $0.08 per share.
For the full year 2019, Square had predicted total net revenues in the range of $2.22 billion to $2.25 billion and adjusted earnings in the range of $0.74 to $0.78 per share. Net loss was projected to be in the range of $0.05 to $0.01 per share for the full year.
Shares of Square opened lower on Tuesday but changed course to the green territory. The stock has risen over 53% in the past year and over 6% in the past three months.