Square Q3 2021 Earnings Report Recap

SQ matched on earnings, missed on revenue

Key Takeaways

  • Gross payment volume (GPV) exceeded analyst predictions.
  • GPV is a measure of the total amount of business that happens on Square's platform.
  • Revenue came in well below analyst expectations.

Square Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
Adjusted Earnings Per Share Match $0.37 $0.37
Revenue (B) Miss $3.8 $4.4
Gross Payment Volume (B) Beat $45.4 $44.7

Source: Predictions based on analysts’ consensus from Visible Alpha

Square (SQ) Financial Results: Analysis

Square, Inc. (SQ) released mixed Q3 FY 2021 earnings results. The company reported adjusted earnings per share (EPS) of $0.37, matching analyst predictions. However, Square came in below consensus estimates with revenue of $3.8 billion, falling shy of an expected $4.4 billion. In its earnings report, Square highlighted a 43% year-over-year (YOY) improvement in its gross profit, driven by a 48% YOY improvement in gross profit for its Seller ecosystem.

Square Gross Payment Volume

Square reported strong growth in its gross payment volume (GPV). This key metric tracks the total dollar amount, net of refunds, of all card payments processed by sellers using the company's payments ecosystem. It includes peer-to-peer payments as well as transactions with merchants that use Square's mobile payments app.

Square's GPV for Q3 FY 2021 was $45.4 billion, an improvement of 43.2% YOY and well ahead of analyst predictions of $44.7 billion.

Square Outlook and Stock Performance

Square did not provide an update on forward guidance in its shareholder letter. In extended-hours trading following the company's earnings release, Square stock traded down nearly 4%. Shares of Square have outperformed the broader market in the past year, providing a one-year trailing total return of 44.5% compared with 35.9% for the S&P 500.

Square's next earnings report, for Q4 FY 2021, is anticipated to be released on Feb. 21, 2022.

Article Sources
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  1. Visible Alpha. "Visible Alpha."

  2. Square Inc. "Q3 2021 Shareholder Letter," Pages 2, 26.

  3. Square Inc. "Form 10-K for the Fiscal Year Ended December 31, 2020," Page 52.

  4. Square Inc. "Q3 2021 Shareholder Letter," Page 8.

  5. TradingView. "Price Chart for Square and S&P 500."

  6. Yahoo! Finance. "Earnings Calendar - SQ."

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