Square Inc (NYSE: SQ) shares are plummeting after reporting first-quarter earnings.
Adjusted earnings came in at 11 cents per share, beating estimates by 3 cents. Adjusted sales came in at $489 million, beating estimates by $11.05 million.
Square sees adjusted second-quarter sales of $545-$555 million versus a $555.5-million estimate. Second-quarter adjusted EPS of 14-16 cents came in below analyst estimates.
“We continued to drive strong revenue growth at scale. In the first quarter of 2019, total net revenue grew 43% year over year, and Adjusted Revenue grew 59% year over year. Excluding the acquisitions of Weebly and Zesty, which were completed in the second quarter of 2018, total net revenue and Adjusted Revenue grew 39% and 49% year over year, respectively. Cash App volume grew nearly 2.5x year over year, reflecting the growing network effects, reach, and engagement of this ecosystem,” CEO Jack Dorsey wrote in his letter to shareholders.
- Cash App volume grew nearly 150 percent year over year
- This compares to Venmo’s Q1 TPV growth of 73 percent year over year
- Adjusted Revenue grew 59 percent year over year
- Adjusted EBITDA was $62 million, up 72 percent year over year
Square shares are down 6.6 percent at $68.87 in after-hours trading. The stock closed at $73.62.
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