Square, Inc. (SQ) has been a disappointment for investors since it went public last November. The company has been on a mostly downward trend since it went public, losing 27% over its existence.
The company has been somewhat unfairly treated by investors.
1. $10.3 Billion in Gross Payment Volume
Square’s gross payment volumes are impressive, with 45% year-over-year growth in Q1 2016. The company had $10.3 billion in gross payment volume, up from $10.2 billion the previous quarter and over $3.2 billion higher than in Q1 2015.
Gross payment has slowed year-over-year from 55% in Q1 2015 to 45% in Q1 2016, but the growth is still impressive.
2. 2.92% of Every Dollar
Square charges 2.92% for every dollar in transactions, but some of this money is sent to credit card companies, too. Transaction revenue was 2.95% when excluding promotional credit that is given for chip and EMV readers.
3. 12% of Users Process Over $500,000 Annually
Square has benefitted by offering small businesses a way to process credit cards. The plus side for the company is that the amount of partners processing less than $125,000 in gross payment volume is shrinking, while those processing $500,000 or more annually are rising.
Between 2014 and 2016, partners processing $500,000 or more rose from 6% to 12%, while those processing less than $125,000 shrunk from 72% to 61%.
Larger sellers representing a larger portion of the company’s users allows for greater stability for the company.
4. Revenue is Up 64% Year-Over-Year
The company’s revenues are up 64% year-over-year, rising from $89 million to $146 million. The company also processes Starbucks’ payments, which is not included in this figure. The company’s contract with Starbucks is set to end at the end of the year and is the biggest concern for the company.
Square’s falling stock price is not a reflection of the company’s growth, which has been steady.
