Square posted a largely successful fourth one-quarter that presented continuing growth with its Cash App — with users spending around $90 million on its Cash card in December, putting it on a potentially$ 1 billion run rate.
That would offer another significant boulevard for Square to snap up additional customers as it appears to chip away at the alternatives available for immediately sending money between users. While popularise by Venmo, many companies have gone after this space — including Apple, where you can send money over iMessage — and its massive popularity through services abroad are indicating the appeal for a company like Square. The remainder of the report was largely above analyst expectations, though it got a slight dig for missing a near-term forecast for its earnings.
Square is seeming fewer and less like simply the point-of-sale system that it was when it went public, though that still accounts for a significant portion of its business. But as it diversifies into new services revenue, especially with new products like Square Capital and the Cash App, it’s receiving new ways to sell a growth( and stability) story to Wall Street that’s so far delivered for its shares over the past year. Those subscription- and services-based components made $253 million in 2017, according to the company.
For the most part, the stock went nowhere after today’s earnings report, which more or less equates to a continuing run that’s sent the market share skyrocketing in the past year. Square’s shares have risen more than 150 percentage over the past 12 months, sending it to a valuation north of $17.8 billion — a valuation wildly higher than its initial public offering when there were many questions about whether it could be a successful business.
Here’s the final slash line 😛 TAGEND