Square (SQ) has announced that its first-quarter earnings have surpassed the estimated price after Thursday’s market close. In addition, it resulted in a boost in revenue in Cash App and Cryptocurrency. As a result, during the late trading, shares of the company rose by 1%.
The FinTech company Square’s revenue shot up during 2020 when consumers were involved entirely in online transactions using the company’s Cash App. In the same year, in the first quarter, the revenue jumped to $960 million against the expected $872.5 million.
With this growth, the company said, the government fund disbursements drove customer inflows during this first quarter. This helped to increase the engagement and adopt more products within the Cash App ecosystem. Square’s increased revenue was ahead of PayPal’s first-quarter result, which was underscored in digital transactions at the beginning of 2021.
Revenue inflow from the in-person transaction
Keeping the digital transaction aside, Square was expecting to see a rise in the in-person transaction. Similarly, the hardware revenue includes Square’s flagship point-of-sale terminals that provide merchants all devices accepting payments saw the growth of 39% with $29 million during the quarter.
However, the company also witnessed the highest growth in its newest product, Bitcoin, with a surge of $3.51 billion in the first quarter. Bitcoin also grossed a profit ratio of $75 million.
Square’s Cash App
The Cash App by Square allows users to do the Bitcoin transaction. In the recent quarters, the crypto-related transaction on the Cash App also saw a good surge, thanks to the recent spike in crypto prices. In March, Cash App allowed users to do complete Bitcoin transactions within the app. By the third quarter of 2020, the company posted revenue of $1 billion in its Bitcoin business.
The company mentioned that the crypto momentum continued to start by 2021. In February, the company said more than 1 million customers purchased crypto coins. The company also mentioned that Bitcoin revenue was on a year-by-year rise due to growth in customer demand.
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