Square Inc. (NYSE: SQ) released second-quarter financial results after markets closed Thursday. The company said that it had $0.21 in earnings per share (EPS) and $563 million in revenue, compared with consensus estimates calling for $0.16 in EPS and $557.07 million in revenue. The same period of last year had $0.13 in EPS and $385.43 million in revenue.
During the most recent quarter, gross payment volume (GPV) increased 25% year over year to $26.8 billion. The GPV from larger sellers grew 34% year over year and accounted for 54% of total GPV, up from 50% in the second quarter of 2018.
Transaction-based revenue was $776 million, up 24% year over year, and transaction-based profit was $285 million, up 24%.
Subscription and services-based revenue totaled $251 million in the second quarter, up 87% year over year. Also, subscription and services-based gross profit came to $191 million, up 102% in the same period. Hardware revenue was $22 million, up 21% year over year, and hardware generated a gross loss of $11 million.
Looking ahead to the third quarter, the company expects to see EPS in the range of $0.18 to $0.20 and revenue between $590 million and $600 million. Consensus estimates call for $0.22 in EPS and $598.96 million in revenue for the quarter.
Jack Dorsey, board chair, CEO and president, commented:
Today we issued a press release with DoorDash announcing that we have entered into a definitive agreement in which DoorDash has agreed to acquire Caviar, our food ordering platform, for $410 million in a mix of cash and DoorDash preferred stock. This transaction allows us to increase our focus on and investment in our two large, growing ecosystems—one for businesses and one for individuals.
Shares of Square closed Thursday at $81.10, in a 52-week range of $49.82 to $101.15. The consensus price target is $84.81. Following the announcement, the stock was down over 6% at $75.82 in the after-hours session.