A Look at Square’s Revenue Metrics


Mar. 8 2019, Published 2:55 p.m. ET

Square breaks out revenue as net revenue and adjusted revenue

Unlike PayPal (PYPL), Square (SQ) reports two revenue metrics: net revenue and adjusted revenue. Square’s net revenue is similar to what other companies including its competitor PayPal report as revenue. But adjusted revenue is calculated by subtracting transaction-based costs and bitcoin costs from net revenue. Square operates a bitcoin trading platform that sits within its Cash App, the same platform used for mobile peer-to-peer money transfer.

Article continues below advertisement

In the fourth quarter, Square reported net revenue of $933 million and adjusted revenue of $464 million. Square’s adjusted revenue is the revenue metric tracked on Wall Street. The reported adjusted revenue of $464 million surpassed consensus estimate of $454 million. Square is expecting to report adjusted revenue in the band of $472 million to $482 million for the current quarter ending March. The adjusted revenue guidance was in line with the consensus estimate. The company is expecting its net revenue to come between $918 million and $938 million in the current quarter.

Square posts fastest growth among major competitors

Square’s net revenue rose 51% YoY in the December quarter, outpacing 13% YoY revenue growth at PayPal and 20% YoY revenue growth at Amazon (AMZN) in the December quarter. Revenue rose 2.0% YoY at Fiserv (FISV) but fell 24% YoY at First Data (FDC) in the December quarter. Fiserv is seeking to absorb First Data in a merger transaction valued at $22 billion.


More From Market Realist

  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.