Square Inc. (NYSE: SQ) announced its 2020 Q3 earning results on November 5th, 2020. According to the announcement, net revenue, gross profit and adjusted EBITDA grew 140%, 59% and 38%, respectively. In addition, gross profit of mobile app Cash App grew 212%.
Cash App provides users with solutions to spend, send, store, and invest their money. For Example, users can purchase listed stocks or Bitcoin by using Cash App.
In this regard, Cash App generated $1.63 billion of bitcoin revenue and $32 million of bitcoin gross profit during the 2020 Q3, up approximately 11x and 15x year over year, respectively. Currently, Bitcoin-related revenue accounts the largest percentage of Square’s revenue.
Square is also making a direct investment in Bitcoin, and announced that it invested $50 million in Bitcoin in October 2020.
Since Cash App’s drastic growth has also been affected by the federal government stimulus program and unemployment benefits, we recognize Cash App growth may not sustain at the same levels during the remainder of the fourth quarter.
Square, Inc. (NYSE: SQ) stock chart
- Watanabe & Brothers’ Investment is holding shares of Square Inc.
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