Square (NYSE:SQ) expects strong Y/Y gross profit growth from both Seller and Cash App ecosystems on a two-year CAGR basis, however expenses continue to rise as Q3 revenue declined Q/Q.
Square (SQ) stock falls 2.9% in after-hours trading.
For Q4, Square (SQ) expects non-GAAP product development, sales and marketing, and general and administrative expenses, in aggregate, to increase by ~$115M compared with Q3 2021, on a dollar basis.
For the year, that means an aggregate increase of ~$1.16B for such expenses vs. full-year 2020, or growth of 55%.
In Q4, the company expects transaction and loan loss expenses to increase by ~$5 million compared with Q3 2021.
Q3 gross payment volume of $45.4B increased $42.8B in Q2 and $31.7B in Q3 2020.
Q3 adjusted EPS of $0.37 matched the average analyst estimate of $0.37; compares with $0.66 in Q2 and $0.34 in the year-ago quarter.
Q3 total net revenue of $3.84B trails the $4.48B consensus, declining from $4.68B in Q2.
Excluding bitcoin, total net revenue was $2.03B vs. $1.96B in Q2.
Transaction-based revenue of $1.30B increased 40% Y/Y.
Cash App generated $2.39B of revenue in Q3, up 16% Y/Y, but down from $3.33B in Q2.
Q3 adjusted EBITDA of $233M, declined from $360M in Q2 and increased 38% Y/Y.