Square (SQ) is set to report Q1 results with a shareholders letter after the close with a conference call to follow at 5pm ET.

Current Capital IQ consensus estimates Q1 adj. EPS of $0.13 (vs $0.11 last year) on revs of $1.303 bln (+166% Y/Y)

SQ is expected to provide Q2 guidance.

Current Capital IQ consensus estimates Q2 adj. EPS of $0.09 (vs $0.21 last year) on Revenue of $1.017 bln (+80% Y/Y).

TECHS:

SQ has a $30 bln market and trades at a forward EV/EBITDA of 68x and price to sales of 5x

RESULTS: Square misses by $0.15, beats on revs  

Reports Q1 (Mar) loss of $0.02 per share, $0.15 worse than the S&P Capital IQ Consensus of $0.13; revenues rose 44.0% year/year to $1.38 bln vs the $1.3 bln S&P Capital IQ Consensus.

Adjusted EBITDA was $9 million in the first quarter of 2020, compared to $62 million in the first quarter of 2019. The decrease in Adjusted EBITDA compared to the prior year period was driven primarily by an increase in reserves for transaction and loan losses and, to a lesser extent, a slowdown in Seller transaction-based gross profit and Seller subscription and services-based gross profit in March.

In the first quarter of 2020, our Seller ecosystem1 generated $853 million of total net revenue and $356 million of gross profit, which increased 16% and 18% year over year, respectively. Cash App generated $528 million of total net revenue and $183 million of gross profit, which increased 197% and 115% year over year, respectively.

Cash App generated $528 million of total net revenue and $183 million of gross profit, which increased 197% and 115% year over year, respectively.

GPV +14% Y/Y

Transaction-based revenue was $758 million in the first quarter of 2020, up 15% year over year, and transaction-based gross profit was $292 million, up 18% year over year.

Transaction-based gross profit: In April, Seller GPV was down 39% year over year.

“During the second half of April, the CARES Act stimulus programs helped drive an acceleration in growth across various Cash App products. In particular, we saw strong adoption of direct deposit from new and existing Cash App customers: April direct deposit volumes and new direct deposit transacting active customers increased by approximately 3x and 4x, respectively, compared to March.”

If you liked this content please click the ❤️ below and/or share this post.

TOTALLY FREE Trading Packet!

Click here to get my packet that shows you how I traded $600 into $100K FOR FREE.

This packet will explain to you in depth how I trade and how I manage my risk.

I am happy to share this. Just use the code KPAKFRAUD at checkout and you will get it TOTALLY FREE. You will pay absolutely nothing.

SHAMLESS PLUGS

CLICK HERE TO CHECK OUT MY 2020 PREVIEW OPINION PACKET. OVER 140 PAGES OF CONTENT AND INFORMATION AVAILABLE HERE.

Check out the latest episodes on my YouTube and SoundCloud channels below.