Square Continues Its Fast Growth Towards Profitability

Square (NYSE: SQ) reported earnings after the market closed on May 2, 2018, and the payment processor continues to show strong growth where it matters:

  • Total net revenue of $669 million, up from $462 million (45% increase year-over-year)
  • Gross payment volume of $17.8 billion, up from $13.6 billion (31% increase YOY)
  • Adjusted revenue of $307 million, up from $204 million (51% increase YOY)

If you’ll recall from a few weeks ago – and from my earnings reports on Visa (NYSE: V), PayPal Holdings (Nasdaq: PYPL), and Mastercard (NYSE: MA) – Square is part of my “War on Cash” basket. Unlike the others, Square is not yet profitable, and as the smallest of the four has some catching up to do, but nevertheless appears to be going in the same direction. Continue reading

Mastercard’s Record-Breaking Quarter Bodes Well For Rest of Year

Mastercard (NYSE: MA) reported earnings after the market closed on May 2, 2018, and it was a record-breaking quarter for the payment processor:

  • Record net revenue of $3.6 billion, up from $2.7 billion (31% increase year-over-year)
  • Record net income rose to $1.5 billion, up from $1.1 billion (38% increase YOY)
  • Diluted earnings of $1.41 per share, up from $1.00 per share (41% increase YOY)

If you’ll recall from a few weeks ago (and from my earnings reports on Visa (NYSE: V) and PayPal Holdings (Nasdaq: PYPL), Mastercard is part of my “War on Cash” basket with those companies and Square (NYSE: SQ). Similar to last week, shares were boosted slightly again with these results from Mastercard and Square (which I covered here), and the “War on Cash” thesis seems to be strong for at least another quarter. Continue reading