Square Reports Wider 1Q Loss, Payment Volume Slowdown Amid Coronavirus Pandemic
May 06 2020 - 5:15PM
Dow Jones News
By Maria Armental
Square Inc. reported first-quarter results on Wednesday,
offering a glimpse into the effects of the coronavirus pandemic.
Here's what you need to know:
PROFIT: Net loss widened to $106 million, or 24 cents a share,
from $38.2 million, or 9 cents a share, a year earlier. On an
adjusted basis, Square reported a loss of 2 cents a share.
REVENUE: Net revenue rose to $1.38 billion from $959.4 million a
year earlier. Square had projected $1.30 billion to $1.34
billion.
PAYMENT VOLUME: Gross payment volume rose 14% to $25.7 billion,
compared with the $27.26 billion analysts projected.
OUTLOOK: Square, which had withdrawn financial projections for
the year, didn't give guidance for the year or second quarter on
Wednesday, citing the impact of the coronavirus pandemic.
PANDEMIC: Square is more exposed to small businesses, hard hit
by the pandemic, and had warned that the coronavirus pandemic had
hit gross processing volume starting in March and conditions
worsened later in the month. During the last two weeks of the
quarter, the company said, seller gross payment volume dropped 35%
year over year, which Square attributed to the pandemic.
Square, one of the firms approved to distribute Paycheck
Protection Program loans, began distributing loans to Square
sellers during the second round of funding for the PPP in April,
the company said.
Write to Maria Armental at maria.armental@wsj.com
(END) Dow Jones Newswires
May 06, 2020 17:00 ET (21:00 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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