Jack Dorsey’s Square has become the biggest mover on the New York Stock Exchange (NYSE) as the company reported a record-breaking Q2 2020 performance.
Square, a merchant and mobile payment solutions provider which has unceremoniously garnered the status of being Twitter founder Jack Dorsey’s ‘other company’, revealed a 64% increase in revenues to $1.92 billion.
Ahead of Square publishing its Q2 results, Wall Street traders were reported to have jumped on the firm’s stock as analysts circulated news that Square would outmatch all consensus.
Wall Street appetites have been rewarded as Square revealed record Q2 gross profits of $600 million, up 28% from its previous Q1 results.
The company, which operates two primary payment ecosystems ‘Seller’ for merchant services and Cash-App for mobile payments, reported a period transactional volume of $23 billion dollars.
In its breakdown of segment performance, Square noted that US take-up of its Cash-App services had been significantly accelerated by consumers switching to contactless payment services as a result of the coronavirus pandemic.
Cash-App transactions alone have generated $1.20 billion of revenue for Square, as well as $281 million of gross profit.
Despite the significant growth of Cash-App, Square has not escaped COVID-19 impacts as its Seller Ecosystem revealed a 9% decline in gross profits to $316 million.
Square underlined that its Seller Ecosystem had been impacted by the enforced closure of small North American businesses concentrated in the hospitality and retail sectors utilising its merchant services as lead payment systems provider.
Supporting its smaller merchants, Square management stated that it has established a new programme helping smaller retail incumbents shift their operations and services online utilising Square software.
Closing its Q2 accounts, Square declared a corporate EBITDA of $98 million, as group net-income losses were reduced to $11 million.
Of further note, Square states that it is actively monitoring the US government developments with regards to how it will manage to deliver the next phase of its covid Paycheck Protection Program (PPP).