=Square (SQ) reported earnings on Wed 1 May 2019 (a/h)

Square misses by $0.14, beats on revs; guides Q2 EPS below consensus, revs below consensus; guides FY19 EPS above consensus, revs above consensus

• Reports Q1 (Mar) loss of $0.06 per share, excluding non-recurring items, $0.14 worse than the S&P Capital IQ Consensus of $0.08; revenues rose 59.3% year/year to $489 mln vs the $479.63 mln S&P Capital IQ Consensus.
  • Gross Payment Volume $22.6 bln, +27% y/y compared to street expectations of $22.3 bln;
  • Adjusted EBITDA $62 mln, +72% y/y
  • Subscription and services-based revenue was $219 million in the first quarter of 2019, up 126% year over year.
  • Hardware revenue in the first quarter of 2019 was $18 million, up 26% year over year, driven primarily by Square Terminal
• Co issues downside guidance for Q2, sees EPS of $0.14-0.16, excluding non-recurring items, vs. $0.18 S&P Capital IQ Consensus; sees Q2 revs of $545-555 mln vs. $555.28 mln S&P Capital IQ Consensus.
  • Adjusted EBITDA in the range of $90-94 mln.
• Co issues upside guidance for FY19, sees EPS of $0.74-0.78, excluding non-recurring items, vs. $0.74 S&P Capital IQ Consensus; sees FY19 revs of $2.25-2.28 bln (Prior $2.22-2.25 bln) vs. $2.25 bln S&P Capital IQ Consensus.
  • Adjusted EBITDA in the range of $405-415 mln.