Square Inc. SQreported first-quarter 2018 adjusted earnings of 6 cents per share, which beat the Zacks Consensus Estimate by a penny and also came ahead of management’s guided range of 3-5 cents per share. The figure also surged 20% on a year-over-year basis but decreased 25% sequentially.
Net revenues of $669 million surpassed the Zacks Consensus Estimate of $624 million and also came ahead of the guided range of $605-$620 million.
Adjusted revenues came in $307 million, which were up 50.5% year over year and 8.5% from the previous quarter. The figure also surpassed management’s guided range of $290-$295 million.
The year-over-year top-line growth was driven by robust product performance, especially CashApp which accelerated the bitcoin revenues of Square. Moreover, strong gross payment volume (GPV) aided the first quarter results.
During the first quarter, Square rolled out Instant Deposit and Cash App in United Kingdom which expanded its reach in the country. Both the products will continue to drive top-line of the company, given the cash flow management status of the country.
Additionally, the company announced the acquisition of Weebly, which will help Square to improve its omni-channel business by combining Weebly’s web presence tools with Square’s in-person and online offerings. This will enhance the company’s service to sellers.
Also, larger sellers will continue to adopt Square platform, courtesy given to its friendly ecosystem.
However, share price of the company dropped more than 4% on Wednesday. Shares of Square have returned 40. 3% on a year-to-date basis, outperforming the industry’s rally of 4%.