Square Q3 2021 Earnings Report Recap

^{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.