Square for the third quarter reported revenue of $3.84 billion. Although it represents a 27 percent year-over-year increase, it was well short of the $4.51 billion that Wall Street analysts were expecting. Shares of Square are trading down around one percentage point this morning following the earnings report.
Gross profit, meanwhile, was $1.13 billion, up 43 percent year over year, with transaction-based gross profit of $543 million. Subscription and services-based revenue reached $695 million in the quarter, an increase of 55 percent compared to the same period a year earlier. Profit in this category was $563 million, up 48 percent year on year.
Square said its Cash App generated $1.82 billion worth of Bitcoin revenue and $42 million in gross Bitcoin profit during the quarter, up 11 percent and 29 percent year over year, respectively.
Square in related news recently opened its Cash App to users between the ages of 13 and 17. Up to this point, users had to be at least 18 years old to open an account. Applicants will still need to gain approval from a parent or guardian to open an account, we’re told, and teen users won’t be able to trade Bitcoin.
Users will receive a Visa debit card issued by one of Cash’s partner banks, and it can be customized with splashes of colors and stamps. Once activated, the card can be added to Apple Pay or Google Pay and used through those platforms.
Square CFO Amrita Ahuja said people in this age group will represent a larger portion of spend in the coming years. “We can now meet an individual earlier on in their financial journey and grow with them over time.”