The American financial services and digital payments company reported fiscal first-quarter 2021 earnings that came ahead of the consensus
First-quarter revenue rose to $5.06 billion, marking a 266% year over year increase. The market was looking for $3.36 billion in revenue. At the same time, the EPS single-handed beaten the 16 cents estimates, the figures coming in at 41 cents. The net income for the quarter was $39 million.
Its main business, Cash App, revealed a gross profit of $495 million for the first three months of 2021, marking a 171% year over year increase. Moreover, in March, it began offering customers the possibility to send bitcoin for free. CEO Jack Dorsey stated that bitcoin could be the internet’s native currency, and Square wants to “further that as much as we can.”
For the future, Square expects its gross profit to grow by more than 135% year over year.
Also, following the promising results, analysts raised Square’s target price from $250 to $300 per share “in response to impressive acceleration in both Seller and Cash App in the first quarter.”
Since the beginning of the year, Square stock price gained approximately 2.3%, while Nasdaq went up 5.8%.
Sources: cnbc.com, thestreet.com