Square reported total revenue of $892.8 million for the nine month period ending with the close of the third quarter (3Q/15), a 49% year-on-year (YOY) increase over the same period in 2014.
Based on the 2015 growth rate the full year 2015 total revenue should come in around $1266 million.
The loss for the first none months of 2015 increased to $131.5 million, compared to $117.0 million for the same period in 2014.
Square posted transaction revenue for Jan 1 thru Sept 30 of $751.9 million, up 50% over the prior year. Transaction costs were $479.9 million for the period.
Square’s Starbucks transaction revenue was up 10.1% YOY to $95.2 million. However, Square’s Starbucks transaction costs were $118.5 million.
Transaction revenue growth was attributable to growth in GPV processed of $8.6 billion, or 51%, to $25.5 billion from $16.8 billion. The majority of growth in GPV was derived from new sellers added within the nine-month period ended September 30, 2015; a smaller portion was generated by growth in GPV from the payment activity of existing sellers that were approved to transact with Square on or prior to September 30, 2014.
Transaction revenue as a percentage of GPV remained constant period to period and contributed 84% of total net revenue in both the nine months ended September 30, 2015, and 2014.
Starbucks transaction revenue contributed 11% of total net revenue in the nine months ended September 30, 2015, down from 14% in the nine months ended September 30, 2014.
Software and data product revenue for the nine months ended September 30, 2015, increased by $29.6 million compared to the nine months ended September 30, 2014. The increase was driven by the launch of several new products and services in 2014, including Square Capital. Software and data product revenue also reflects revenue contributions from Caviar, which Square acquired in August 2014. Software and data product revenue grew to 4% of total net revenue in the nine months ended September 30, 2015, up from 1% in the nine months ended September 30, 2014.
Hardware revenue for the nine months ended September 30, 2015, increased by $4.7 million, or 89%, compared to the nine months ended September 30, 2014. The increase reflects growth in sales of Square Stand and third-party peripherals, as well as the launch of the Square Reader for EMV chip cards in the second quarter of 2015. Hardware revenue represented 1% of total net revenue in both the nine months ended September 30, 2015 and 2014.
SQUARE TOTAL NET REVENUES
2012: $203.4 million
2013: $552.4 million
2014: $850.2 million
2015: $892.8 million (1Q+2Q+3Q)
2015: $1266.5 million (estimated)
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