4 November, 2016
Square’s Services Strategy Is Paying Off
In its fourth quarter as a public company, Square exceeded expectations and posted results that ultimately led the company to raise its revenue guidance for the year.
That’s extremely important as a marker of the company’s overall health and growth, particularly after a lackluster IPO last fall rose questions about long-term profitability. Square’s overall gross payment volume (GPV) rose to $13.2 billion, marking 39% year-over-year (YoY) growth.
The firm is continuing to effectively reach into larger sellers to grow its base profitability.
- Large sellers are growing GPV. Square noted that GPV gains were related to increases in large sellers, defined as merchants that process over $125,000 in annualized sales. The firm’s large sellers now comprise 43% of GPV, up from 37% in the previous quarter. And though growth slowed a bit from Q2, when it shot up to 61%, larger seller GPV is still growing at a solid 55% — a figure that’s faster than the company’s GPV growth overall.