Square satisfies Q4 earnings targets, guidance light

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Square reported better-than-expected fourth quarter financial results on Wednesday, but mixed guidance sent its shares down after hours. The mobile payments processor reported a Q4 net loss of $28.2 million, or 7 cents a share. Revenue was $464 million, up 64 percent over the same quarter last year with EPS of 14 cents. Wall Street was looking for earnings of 14 cents a share on revenue of $454.1 million.

Square’s gross payment volume (GPV), a key metric for the payments company, ticked up to $23 billion, an increase of 28 percent from the same period a year ago. 

Looking at the rest of Square’s balance sheet, the company’s fourth quarter transactional revenue came in at $668 million. Revenue from its software and data products, including Square Capital, climbed to $194 million, up 144 percent compared to the year-ago period. The company’s hardware revenue was $18 million.

Another strong metric for the company this quarter comes from Cash App subscribers. Square said Cash App had more than 15 million monthly active customers in December 2018, more than double year over year.

For the current quarter, Square expects EPS between 6 cents and 8 cents with net revenue between $472 million to $482 million. Analysts are looking for earnings of 11 cents a share with revenue of $473.8 million. Square’s stock dipped more than 5 percent after hours.

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