Tue. Oct 3rd, 2023
Выручка от Square Bitcoin упала по сравнению с предыдущим кварталом

Total third-quarter sales fell short of analysts’ expectations

Square Inc., a digital payments company run by Jack Dorsey, reported disappointing third-quarter sales, constrained by falling bitcoin-related revenues from its Cash app.

According to Bloomberg, total sales were $ 3.84 billion, up 27% from a year earlier, but less than the average analyst estimate of $ 4.51 billion.

Gross profit increased by 43%

Gross profit, which includes commissions, was $ 1.13 billion for the period, up 43% from a year earlier, but little change from the second quarter.

Although Bitcoin revenues were $ 1.82 billion, or 47% of Square’s total sales, these transactions have little impact on the company’s bottom line. Cryptocurrency sales accounted for just 3.7% of the company’s gross profit in the third quarter.

“Bitcoin transactions through the Cash app have grown significantly over the past two years, but Bitcoin revenue can be deceiving. Bitcoin’s gross margin is the money Square collects from Bitcoin transaction fees and is the best reflection of that part of the company’s business, ”said Square CFO Amrita Ahuji.

The company is trying to create other Bitcoin-related products and functions besides buying and selling currencies, she said. In February, the company acquired $ 170 million worth of bitcoins and expanded its Cash App offering for teens.

Square, based in San Francisco, California, fell 5% in extended trading, up 14% this year.

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