Payment platform Square reported revenue of $3.1B, up 138% YoY for Q4 2020. Its overall revenue for 2020 increased to $9.5B, up from $4.7B in 2019. The company’s stock price fell by 12% on the earnings announcement.
- The company’s gross profit for Q4 2020 increased by 52%, but net profit declined by 25% to $293M for Q4 2020. Square’s overall profit for 2020 declined by 42% to $213M.
- Square announced that it bought additional Bitcoin worth $170M, representing 5% of its assets. Last year, it purchased $50M worth Bitcoin, representing 1% of its assets.
- Its revenue from Bitcoin increased by 10x for Q4 to $1.75B. Bitcoin contributed to a profit of $41M in Q4 and $97M in overall 2020.
- The company noted that in 2020, about 3 million customers either bought or sold Bitcoin on the platform, and in January 2021, nearly 1 million customers bought bitcoin for the first time.
- The Gross Payment Volume processed by Square reached $32B in Q4, up 10% YoY. In comparison, PayPal processed $277B in Gross Payment Volume last quarter.
- As of Feb. 22, Square’s market cap was at $120B, ahead of Goldman Sachs’ $109B.
In other fintech news:
- "Buy Now Pay Later" (BNPL) firm Klarna is likely to go public via a direct listing this year. The company was last valued at $11B — a 2x increase within a year — when it raised $650M from Silver Lake in September.
- The company also plans to raise $500M in funding ahead of its public listing, as it doesn’t need to raise additional capital through IPO.
- Affirm, another BNPL firm, went public in January and its share prices have increased by 143% since the IPO.