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Square Inc. has agreed to an all-stock deal valued at around $29 billion to acquire Australia’s Afterpay Ltd., an installment-payment company that positions its service as a cheaper and more responsible alternative to a credit card. Square said it plans to integrate Afterpay into its Seller and Cash App business units, which would allow more retailers to offer so-called buy now, pay later services at checkout. (FOX)
- Releasing Q2 earnings early in conjunction with its planned $29B acquisition of Afterpay, Square (NYSE:SQ) reports Q2 gross payment volume increased 29% from the previous quarter as the Seller and Cash App ecosystems continue to gain traction.
- Bitcoin revenue slipped from the previous quarter as the price of bitcoin stabilized from volatility earlier in the years.
- Q2 gross payment volume of $42.8B, up from $33.1B in Q1 and $22.8B in Q2 2020.
- Cash App reached 40M monthly transacting active customers in June.
- Q2 adjusted EPS of $0.66 beats the average analyst estimate of $0.31; compares with $0.41 in Q1 and $0.18 in the year-ago quarter.
- Q2 total net revenue of $4.68B, trailing the $5.05B consensus, declined from $5.06B in Q1 and jumped from $1.92B in Q2 2020.
- Excluding bitcoin, total net revenue was $1.96B vs. $1.55B in Q1 and up 87% Y/Y.
- Q2 adjusted EBITDA of $360M, increased 53% Q/Q and more than tripled from $98M in Q2 2020.
- Cash App generated $3.33B of revenue in Q2, up 177% Y/Y, but down from $4.04B in Q1 2021. It produced $546M of gross profit, up from $495M in Q1 and up 94% Y/Y,
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