Square (SQ 0.62%) is reporting Q3 earnings on November 4. So as always, I will recap what happened with Square in this quarter. We're going to have a look at its Q2 numbers and some of the company's activities during the quarter. You can find the video below.
Q2 earnings recap
The company reported revenue of $4.68 billion, up 143% year over year, vs. $4.99 billion expected, beating earnings-per-share estimates by $0.09. Revenue excluding Bitcoin was $1.96 billion, up 87% year over year (YOY). Cash App gross profit was $546 million, up 94% YOY, and seller gross profit was up to $585 million, up 85% YOY. Net income for the second quarter was $204 million. Square processed $42.8 billion in gross payment volume (GPV) in Q2, up 88% YOY.
The company announced the acquisition of Afterpay for around $29 billion. The acquisition should close in Q1 of 2022.
What happened
Since the start of the quarter, Bitcoin's price has gone up close to 50%, unlike in Q1, when the price went down 50%. Square doesn't make that much of a profit from Bitcoin. Last quarter, Bitcoin's gross profit was just $55 million, or approximately 2% of its revenue. I would expect to see the same gross profit as in Q1 or even a bit more, but it will still be around only 2% of its revenue. Another positive could be the Bitcoin it holds on its balance sheet.
Square has been making moves in Europe with some pilot launches in France, Spain, and Ireland. So we might get some updates on how that's doing during the call as well as the effects of the recently launched Cash App Pay.
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*Stock prices used were the closing prices of October 29, 2021. The video was published on October 31, 2021.
