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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.
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