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(Original link: businessinsider.com)
Square stock jumped as much as 2.3% early Thursday after the digital payments company beat Wall Street's estimates for third-quarter earnings and revenue. The company also adjusted its full-year revenue forecast higher, both with and without the impact of the $410 million sale of its Caviar business to DoorDash. Square's Cash app introduced equities trading and partial share ownership in the third quarter. CEO Jack Dorsey praised the service as an "introduction to financial services" during a Wednesday earnings call. Watch Square trade live here .
Square stock rose as much as 2.3% in early Thursday trading after the company topped third-quarter expectations and boosted its 2019 revenue forecast.
The mobile payments company beat estimates for both earnings and revenue in the third quarter. Revenue from the company's Cash app, which facilitates mobile payments, surged 115% year-over-year. Square also announced plans to invest more in its Seller business after recent marketing campaigns drove "revenue contribution from new cohorts."
Square completed the sale of its Caviar food delivery business to DoorDash on October 31 to focus on its core business. The $410 million transaction was split between $310 million of DoorDash stock and $100 million in cash.
Here are the key numbers:
Revenue: $602.2 million, versus the $597.1 million estimate
Adjusted earnings per share: 25 cents, versus the 20 cents estimate
2019 revenue guidance: $4.42 billion to $4.44 billion, versus the previous $4.22 billion to $4.28 billion forecast
The company's third-quarter statement noted that its guidance for full-year revenue improved both with and without the impact of its Caviar sale.
Dorsey praised the Cash business for its expansion into financial services. Users can already trade cryptocurrencies through the app, but the third quarter introduced equities trading and partial share ownership.
The chief executive used Berkshire Hathaway Class-A stock as an example of the latter, noting that Cash users can now own any sliver of the $332,000 shares.
"For many of the folks we serve, Cash App is the first introduction to financial services. And for many more in the mainstream, it's the best replacement for a number of apps they had to otherwise cobble together to make work," Dorsey, who also serves as Twitter's CEO, said on a Wednesday analyst call.
Square closed at $61.34 per share Wednesday, up roughly 9% year-to-date.
The company has 18 "buy" ratings, 18 "hold" ratings, and five "sell" ratings from analysts, with a consensus price target of $71.69, according to Bloomberg data.
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