Square reports 4Q/15 Gross Payment Volume (GPV) increased 47% year over year to $10.2 billion. Adjusted Revenue was $135 million, up 64% year over year, while total net revenue was $374 million, up 49% year over year.
Software and Data Products revenue was $22 million, up 52% sequentially from $15 million in the third quarter of 2015.
From payment processing to point of sale, hardware to software, business financing to payroll (and more), Square has built a cohesive commerce ecosystem that helps sellers start, run, and grow their businesses.
In December, 53% of cards swiped on Square were EMV chip cards, up from 12% in January 2015. We have always been a leader in this space and believe we are in an ideal position to capitalize on this industry wide shift.
As of the end of the fourth quarter, Square had already received over 350,000 pre-orders for our new contactless and chip reader. With this reader, Square sellers can accept payments in nearly every way their customers want to pay. It makes it easy to accept EMV chip cards and also new, faster forms of payment such as Apple Pay and Android Pay.
The reader is for sale online and in Apple Stores around the country for $49, and we are planning to sell the product on Amazon and in Staples, Best Buy, and Target stores in the spring.
Square Capital delivers capital to sellers in a fast, fair, and intelligent manner. Its growth is exceptional: Square extended over $400 million through more than 70,000 advances in 2015, with nearly $150 million advanced in the fourth quarter.
With Instant Deposit, Square can send funds from a sale immediately to a seller’s bank account—24 hours a day, seven days a week. Square charges one percent of the dollar amount deposited, and since launch in August 2015 through the end of the fourth quarter, Square has helped over 58,000 sellers complete nearly 600,000 deposits instantly.
With Square Invoices, sellers can create custom digital invoices and collect payments online. Since its launch a year and a half ago, approximately 100,000 active sellers used Square Invoices to process their payments as of the end of the fourth quarter.
Caviar, Square’s restaurant delivery service for popular local restaurants, launched in six new cities in 2015 and is now in 17 markets across the country. Caviar enables restaurants to serve more customers, grow their sales, and expand their reach. The number of orders through Caviar in the fourth quarter grew by 4.5 times year over year.
In the fourth quarter of 2015, Square processed GPV of $10.2 billion, which represents an increase of 47% from the fourth quarter of 2014. For the full year of 2015, GPV totaled $35.6 billion, a 50% increase from the full year of 2014. GPV growth was driven by both ongoing growth in our existing seller base and new sellers added in 2015. GPV from larger sellers, which we define as those that generate greater than $125,000 in annualized GPV, grew over 70% in the fourth quarter and now represents 39% of GPV, up from 33% a year ago.
Adjusted Revenue was $135 million in the fourth quarter of 2015, which represents an increase of 64%, an acceleration from the 57% growth rate in the third quarter of 2015. For the full year of 2015, Adjusted Revenue was $452 million, an increase of 64%. Total net revenue, which includes revenue from Starbucks, was $374 million in the fourth quarter, up 49%, and $1,267 million for the full year of 2015, also up 49%.
Transaction revenue was $299 million in the fourth quarter of 2015, up 45%. Transaction revenue as a percentage of GPV was 2.93% compared to 2.97% in the prior year period. The decline is attributable to increases in free processing credits for seller-to-seller referrals and selectively offering custom pricing to larger sellers.
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