Square Inc on Thursday posted its earnings results for the fourth quarter which remained better than what the analysts were expecting.
The digital payment company led by Twitter CEO Jack Dorsey reported earnings of 14 cents per share which came ahead by 1 cent ahead of 13 cents per share estimates forecasted by Refinitiv, and 6 percent above from the per share earnings last year.
For the fourth-quarter, company’s adjusted revenue of $464 million also remained ahead of $454 million estimates as forecasted by Refinitiv which also rose by 64 percent year-over-year.
But outlook issued by the payment company was disappointing, as it issued earnings-per-share guidance of between 6 cents and 8 cents for the first quarter while Wall Street was expecting it to be 11 cents. The forecasted revenue of between $472 million and $482 million for the first-quarter remained in line with the analysts’ estimates of $474 million.
Revenue from subscriptions and services is a metric of the company, analysts keep an eye on and it came up as bright spot by posting a revenue generation of $194 million in the reported quarter which surged by 144 percent year-over-year, while yearly revenue from that portion came to $592 million which jumped by 134 percent year-over-year.
The San Francisco-based company reported more than 15 million monthly active customers to its peer-to-peer Cash App in December 2018 which remained doubled to that of a year earlier.
In January 2018, Square launched a service of trading bitcoin through its Cash App, and in fourth-quarter, it generated revenue of $52 million from the cryptocurrency which was $43 million in the third quarter, while full year revenue from that segment came to be at $167 million.
Fourth-quarter revenue from products launched in last five year accounted for 51 percent of Square’s total adjusted revenue, company said in a statement.
