A Company Square-ly Aimed at Success
Square Inc.'s (NYSE: SQ) third-quarter earnings report earlier this month came on the heels of a pretty busy quarter. In the previous three months alone, Square made high-profile partnerships with both Eventbrite and SAP SE (NYSE: SAP) that essentially embedded Square's payment processing services into the two companies' business platforms, applied for a bank charter in Utah, and released Square Register, the company's first high-end checkout terminal.
With this barrage of news as the backdrop, Square once again delivered an excellent quarter. Adjusted revenues increased to $257 million, a 45% increase year over year, and adjusted EBITDA increased to $34 million, an amazing 195% year over year increase. These powerful results were driven by growth in the company's gross payment volume, the total dollar amount processed by Square, which grew to $17.4 billion, a 31% increase over 2016's third quarter. The company's take rate, its transaction-based revenue as a percentage of gross payment volume, remained steady at 2.93%.
With all the news and great numbers, I wonder if Square investors had a chance to digest what I thought was the most bullish takeaway from the quarter: how Square's payment processing services are gaining real traction with omnichannel sellers.
Source: Fool.com
