What Is The Buzz Surrounding Square Inc (NYSE:SQ)?


Square Inc (NYSE:SQ) accelerated top-line growth at extensive scale in Q4 2017. Total net revenue came at $616 million, a jump of 36% YoY. Adjusted Revenue came at $283 million, an increase of 47% YoY. This is a jump from Q3 2017, when Adjusted Revenue and total net revenue grew 45% and 33%, respectively, year over year.

The buzz

Square reported that Gross Payment Volume came at $17.9 billion, registering a jump of 31% year over year. The company continue to record strength in big sellers, with Gross Payment Volume from this segment rising 44% YoY and exhibiting 47% of total GPV. Net loss in Q4 2017 came at $16 million, which was essentially flat on a YoY basis. Adjusted EBITDA came at $41 million, showing an improvement of $11 million YoY, while Adjusted EBITDA margin stood at 15%.

The company’s 2017 results establish the stage for robust momentum in 2018. Three major areas will lead their investment and strategy this year: financial services, omnichannel commerce and current global markets. These areas offer meaningful value to individuals and sellers and considerably increase the addressable market prospect for Square.

The company focus remains on enabling sellers’ seamless interaction with buyers wherever they are, which comprises in person, websites and apps, digital marketplaces and messaging channels.

Square has an opportunity to offer more financial services to individuals and sellers, especially those who have been not served well by the conventional financial system. The focus will remain on global initiatives this year on increasing share in company’s current markets of Canada, Japan, Australia and the UK. They will strengthen their go-to-market plan, expand their overall product offering and improve automated onboarding.

Square management reported that they continue to create significant vectors of growth. In Q4 2017, revenue from products introduced since 2014 came at 22% of total net revenue, up from 14%, in the prior year period.


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