Advertiser Disclosure

InvestorGreg.net is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. That's how we make money. This compensation may impact how, where and in what order products appear. InvestorGreg.net does not include all companies or all available products. We will never allow advertisers to influence our opinion of financial products that appear on this site.

Square Payment Service Lost $28 Million for the Quarter

The quarterly loss of Square, an American financial and technological company, increased by 78%. The shares began to fall in price. Investors are disappointed in the Company’s prospects.

The Square payment service’s net loss for the fourth quarter of 2018 amounted to $28 million, or 7 cents per share. The Company’s quarterly losses increased by 78% compared with the same quarter of 2017. After the release of reporting, shares immediately fell down by more than 6%. Meanwhile, in anticipation of the release of financial results, investors were very optimistic about Square. The shares of the payment service closed the previous day’s trading with a 1.8% increase.

The revenue jumped up by 64%

Multi-million dollar losses did not prevent Square from fixing the adjusted profit, which grew by 75% over the year. The adjusted earnings amounted to 14 cents per share, exceeding the forecasts of analysts polled by FactSet by 1 cent.

The adjusted revenue of the American financial service, which excludes transaction costs and expenses for bitcoins, soared by 64%, up to $464 million. According to FactSet, analysts expected adjusted revenue to be $453 million.

Over the past quarter, the Company processed gross payments of $23 billion, while Wall Street analysts expected this figure to be $23.1 billion. The revenue from subscriptions and services jumped up by 144% annually, up to $194 million.

The fourth quarter was not marked by anything special, but the new products and services that the Company may present during the year will give it a second wind, - Dan Dolev, an analyst from Nomura, who published the data, estimated Square’s results.

The Company will focus on three things in the coming year: personal payments, mobile payments and online payments, - Jack Dorsey, its founder and CEO, announced about Square’s development plans.

According to the results of this year, it is expected Square’s adjusted earnings per share to be in the range of 74-78 cents, and adjusted revenues to be in the range of $2.22-2.25 billion.

About the author

InvestorGreg Editorial Team

InvestorGreg Editorial Team

The InvestorGreg Editorial Team is a group of financial writers and analysts who cover the worlds of finance and investment. Read more

Recommended Financial Products

Fidelity
A household name, Fidelity has always been known to be a reputable investment firm. In our Fidelity Broker Review, we will examine some of the pros and cons of this broker as well as the fees charged by the broker.
Charles Schwab
Charles Schwab has been one of the leading full-service brokers for decades. They have more than $3 trillion in client assets and there are more than 10.5 million active brokerage accounts.
E*TRADE
ETrade is a broker that has long been at the forefront of online trading. They made their first online trade in 1982. Let’s take a look at the broker offering and see if they are right for you.
Vanguard
Vanguard Brokerage, an excellent choice of broker for low cost longterm investment. The broker offers the lowest expense ratio for index funds and ETF's.

Full list of recommended

Suggested For You

Global Payments and Total System Services Merged MAY 29, 2019 Global Payments and Total Systems Services, US payment services, concluded a merger agreement. It is planned to close the deal in the fourth quarter of 2019.
JP Morgan Quarterly Profit Increased 1.7 Times in the 4th Quarter JAN 17, 2019 The net profit of JP Morgan Chase & Co., the largest US bank in terms of assets, grew 1.7 times (by 67%) in the 4th quarter of 2018 and amounted to $ 7.066 billion, or $ 1.98 per share, compared to $4.232 billion, or $1.07 per share, received during the same period of the previous year.
Nvidia Earned Record Income in the 4th Quarter of 2019 FEB 14, 2020 Nvidia reported the results of the 4th quarter of 2019. The company announced “record” revenue from selling data processing centers.
Fidelity Will Launch a Cryptocurrency Storage Service JAN 31, 2019 The start of the cryptocurrency storage service from Fidelity Investments, which assets under management amount to $2.5 trillion, may take place in March, CoinDesk reports. According to sources, the system of the division of Fidelity Digital Asset Services LLC (FDAS) has been already operating, and it is used to store digital money currently.
Adobe Hit a Record for Revenue. The company earned $9 billion for the year DEC 18, 2018 Adobe, the American developer of computer software, achieved maximal results for revenue for the whole its history. The company made an income of $2.5 billion for the last quarter and $9 billion for the financial year.