Square announced fewer Growth of Net Revenue in 2020 Q4 compared to that in Q3

Square, Inc. (NYSE: SQ) announced its 2020 Q4 and annual earning results on February 23rd, 2021. As a result, total net revenue in 2020 Q4 was up 140.1%, with surprising growth of Bitcoin revenue of up 889.0% (YoY). For the full year, total net revenue was up 101.4% and Bitcoin revenue was up 785.2% (YoY). 

Square’s growth of revenue in 2020 was driven primarily by Bitcoin revenue in Q3. Total net revenue was up 57.7% and Bitcoin revenue was up 86.6% in Q3, while total revenue was up 4.1% and Bitcoin revenue was up 7.5% in Q4 (QoQ). These results indicate that growth of revenue on quarterly basis is at least temporality slowing down.

As for revenues according to segments, revenues of Seller segment was up only 1.9% (TTM) due to the impact of the COVID-19 pandemic. In the future, it is worthy to remark how much the recovery of the Seller segment revenue after the economic reopening. 

Square also offers additional services related to the Cash App business, such as Boost, a discount service for credit card payments. It seems also important to remark the effects of these additional services on Cash App revenue, especially on the acquisition of CashApp users.

Watanabe & Brothers’ Investment believes that Square, Inc. will continue to grow their business, but the growth in 2021 might be slowed down compared to 2020.

Square, Inc. (NYSE: SQ) stock chart

Important Notice 

  1. Watanabe & Brothers’ Investment is holding shares of Square, Inc. 
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