© Reuters. Block Shares Drop 6% Despite Beating in Q2
Shares of Block (SQ) fell more than 6% after hours despite the company’s reported Q2 results, with both EPS of $0.18 and total net sales of $4.4 billion both. higher than consensus estimates of $0.16 and $4.33 billion, respectively.
Total Q2 net revenue fell 6% year over year and, excluding bitcoin revenue, total net revenue increased 34% year over year to $2.62 billion. Excluding bitcoin revenue and buy-now-pay-later (BNPL) platform revenue, total net revenue grew 23% year-over-year to $2.41 billion.
Square’s revenue grew 32% year-over-year to $1.73 billion. On a three-year CAGR basis, Square’s revenue grew 26%. Cash app revenue fell 21% year-over-year to $2.62 billion. On a three-year CAGR basis, Cash App revenue grew 116%. Excluding bitcoin and the BNPL platform, Cash App revenue grew 21% year-over-year to $732 million.
Transaction-based revenue grew 20% year over year to $1.48 billion. Subscription and services-based revenue grew 60% year over year to $1.09 billion.
For Q3/22, the company believes the three-year compound annual growth rate for the three years from 2019 to 2022 will help reflect underlying trends within each ecosystem, with variation in the CAGR comparison year on year and two years due to COVID-19.
For July, Square GPV is expected to grow 18% year-over-year. On a three-year CAGR basis, GPV growth is expected to be 23% in July.
For July, Cash App gross profit, excluding the BNPL platform, is expected to grow on a yearly and three-year CAGR basis, driven by growth in monthly trading activities. , engagement in the company’s ecosystem, and cash flow into the Cash App.
By David Kirakosyan
