Square’s earnings and revenue exceeded analyst estimates aided by the company’s Square Cash consumer app.
Cash App, the popular payment app from Square, was at first designed to enable fiat currency transfers. Conversely, it soon started to support cryptocurrency trading. In the third quarter of 2019, Square managed sales of $148 million in bitcoin transactions.
The surge in sales indicates Square’s American customer’s major retail involvement in cryptocurrencies.
Square Earnings Exceeds Analyst Estimates
According to the released earnings results report, in the second quarter of 2019, Square handled $125 million in bitcoin transactions through its Cash App, almost doubling the first-quarter high. Yet Q2’s bitcoin sales contributed just $2 million to the company’s gross profit.
Square, in its Q3 investor letter, said:
“We are increasing the upper end of our full-year 2019 total net revenue guidance by $110 million due to underlying trends in our Seller and Cash App businesses, as well as bitcoin outperformance in the third quarter.”
Considering the low-profit margin on BTC transactions, it seems that more and more customers are finding their way to the Square Cash App for Bitcoin investment.
The letter also stated:
“First-time Bitcoin buyers have approximately doubled and Cash Card orders have seen a meaningful uplift.”
The company’s total revenue increased to $1.27 billion year-over-year by 44 percent, and adjusted revenue grew to $602 million year-over-year.
The company’s net income in Q3 2019 was at $29 million, compared to a $20 million net income in Q3 2018.
Square’s Cash Card is a free business debit card that allows sellers to spend their own money as soon as they make a sale.