Square Q2 Profit Tops View
California-based e-payment portal Square Inc. (SQ) reported that its second-quarter net income attributable to common stockholders was $204.02 million or $0.40 per share compared to a loss of $11.48 million or $0.03 per share in the previous year. In the latest-quarter, the company recognized a gain of $77 million driven primarily by the sale of remaining investment in DoorDash.
Net income was $173 million when excluding the $77 million gain on equity investments and the $45 million loss related to the impairment of bitcoin investment.
Excluding the gains from investments in DoorDash and losses from its investments in bitcoin, net income per share in the second quarter of 2021 was $0.34.
Adjusted net income per share was $0.66 for the second quarter of 2021, compared to $0.18 per share in the prior year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.30 per share for the second quarter. Analysts’ estimates typically exclude special items.
Total net revenue was $4.68 billion in the second quarter of 2021, up 143% year over year. Excluding bitcoin, total net revenue in the second quarter was $1.96 billion, up 87% year over year. Analysts expected revenue of $4.99 billion for the quarter.
Transaction-based revenue was $1.23 billion in the second quarter of 2021, up 80% year over year, and transaction-based gross profit was $543 million, up 85% year over year.
Cash App delivered strong growth in the second quarter of 2021, generating $3.33 billion of revenue and $546 million of gross profit, which increased 177% and 94% year over year, respectively.
For the third quarter of 2021, the company expects non-GAAP product development, sales and marketing, and general and administrative expenses, in aggregate, to increase by about $150 million compared to the second quarter of 2021, on a dollar basis.
For the full year of 2021, the company expects non-GAAP product development, sales and marketing, and general and administrative expenses, in aggregate, to increase by about $1.1 billion to $1.2 billion compared to the full year of 2020, representing growth of 55% year over year at the midpoint.
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