SHOP customers are naive people who believe their 5-item online shops can compete with amazon. These people will burn their life savings on Facebook and Google ads, and quit after a year or two.
It works out to 7.6% of revenue. That’s pretty small compared to most tech companies. They are a tech company and software engineers are expensive. They’ll keep developing new features and products. Most of the revenue is from larger businesses.
The small customers are a small percent of revenue.
what’ll happen to SQ today…
Options market is heavily tilted towards calls, so people think it’ll go up.
SQ is a pretty volatile stock…
Now it is up 3%> option buyers already make money.
I had some Jun calls, felt too close for a potential downfall. Sold some, bought some january ones. if it drops, will buy more.
SQ dropped 4% AH. Not as bad as i was thinking.
Square’s expenses were too high they say.
Dorsey-led Square’s quarterly loss widens as expenses soar
There’s also this, doesn’t affect SQ so much since amazon is online and sq is offline.
That came out during the day. Square still closed positive. PayPal dropped like a rock though.
Is this legal? It amount to dumping below cost😏 Can’t sell a physical product below cost but can sell a service below cost?
Their GM is pretty good, so they aren’t selling the product at a loss. They aren’t covering their corporate expenses. That’s super common for young companies as they scale. The troubling part is expenses are growing faster than revenue. That’s a pretty bad sign.
Square rev grew 51% and operating expenses grew 47% YoY. So rev is still growing faster.
I see 45% rev growth.
" The company saw total net revenue figures of $669, surpassing our consensus estimate of $623.75 million and growing 45% year-over-year. Adjusted revenues came in at $307 million."
GPV growth was only 31%.
“Q1 adjusted EBITDA of $36M vs. $27N one year ago. Adjusted revenue up 51% to $307M. Bitcoin revenue of $34M.”
Not sure what’s adjusted revenue.
bitcoin revenue 34M - is that “total volume” or their commissions" If it’s the latter, it looks huge.
GPV so total value of transactions. Their commission is a small percent of that.
Doesn’t look too bad.