Square +2% after revising Q2, FY forecast for Weebly purchase, notes issue

|By:, SA News Editor

Square (NYSE:SQ) rose 2% after the fintech company revised guidance to reflect its Weebly acquisition, which closed today, and its recent issuance of $862.5M principal amount of 0.50% notes due 2023.

SQ now sees Q2 total net revenue $744M-$764M, had seen $740M-$760M.

Q2 net loss now seen at 6-8 cents a share, had seen loss of 2-4 cents; adjusted EPS view remains the same at 9-11 cents.

For the year, SQ now sees total net revenue of $3.03B-$3.09B vs prior view of $3.00B-$3.06B; year net loss per share now seen at 24-28c per share vs prior view of loss of 4 cents-break even; adjusted EPS changes to 42-46 cents from 44-48 cents.

The new total net revenue guidance reflects the impact of the deferred revenue adjustment related to the purchase accounting of the acquisition.

The forecast for net earning/loss per share reflect the estimated effects of: the amortization of acquisition-related intangible assets, deferred revenue adjustments related to the purchase accounting of the acquisition, cash and share-based compensation expense associated with employee retention, and other acquisition-related costs.

Source: Press Release

Previously: Square rings up $8B in value, aided by Bitcoin, M&A (May 31)