Company name:
Square Inc
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IPO SHARE PRICE:$9.00
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IPO DATE:November 19, 2015
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TICKER:SQ
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MAIN STOCK EXCHANGE:New York Stock Exchange
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CURRENT HQ LOCATION:1455 Market Street Suite 600 San Francisco CA 94103
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FISCAL YEAR END:December 31
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INCORPORATION JURISDICTION:DE
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ORGANIZED AS THE FOLLOWING LEGAL TYPE:Corporation
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Investor Relations Webpage:Coming soon!
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TAX RATE:USA federal corporate nominal income tax rate is 21%
Short Description
Square Inc
We are working hard and as soon as possible to provide company description soon. Feel free to reach out to request it sooner: improve@real-clear-investing.com
Income Statement
(USD in thousand)
Selected Quarter:
31-Dec
2020
2020
Revenue
Gross receipts in the form of cash (great!) and promises to pay (Account Receivables - not so great as some of them will never be collected but reality of business!) from all its customers
100%
55.6% —
Bitcoin revenue
29.4% —
Transaction-based revenue
14.2% —
Subscription and services-based revenue
0.8% —
Hardware revenue
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| Transaction-based revenue | 656,762 | 775,510 | 816,622 | 832,180 | 758,101 | 682,572 | 925,294 | 929,011 | 3,294,978 | 3,716,044 | ||||||||||||||||
| Starbucks transaction-based revenue | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||
| Subscription and services-based revenue | 218,857 | 251,383 | 279,801 | 281,415 | 296,235 | 346,275 | 447,522 | 449,371 | 1,539,403 | 1,797,484 | ||||||||||||||||
| Software and data product revenue | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||
| Hardware revenue | 18,212 | 22,260 | 21,766 | 22,267 | 20,675 | 19,322 | 27,294 | 24,363 | 91,654 | 97,452 | ||||||||||||||||
| Bitcoin revenue | 65,528 | 125,085 | 148,285 | 177,567 | 306,098 | 875,456 | 1,633,764 | 1,756,225 | 4,571,543 | 7,024,900 | ||||||||||||||||
| Total Revenue | $959,359 | $1,174,238 | $1,266,474 | $1,313,429 | $1,381,109 | $1,923,625 | $3,033,874 | $3,158,970 | $9,497,578 | $12,635,880 |
Selected Quarter:
31-Dec
2020
2020
Operating expenses
Cost (labor, materials, depreciation, overhead, etc) for delivering service or manufacturing a product that business sells
98.6%
54.3% —
Bitcoin costs
16.9% —
Transaction-based costs
10.4% —
Sales and marketing
8.0% —
Product development
5.0% —
General and administrative
2.1% —
Subscription and services-based costs
1.1% —
Hardware costs
0.5% —
Transaction and loan losses
0.1% —
Amortization of acquired technology
0.0% —
Amortization of acquired customer assets
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Hardware costs
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26,941 | 33,268 | 35,672 | 40,504 | 34,372 | 28,315 | 45,220 | 35,994 | 143,901 | 143,976 | ||||||||||||||||
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Starbucks transaction-based costs
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- | - | - | - | - | - | - | - | - | - | ||||||||||||||||
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Software and data product costs
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- | - | - | - | - | - | - | - | - | - | ||||||||||||||||
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Transaction-based costs
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409,069 | 490,349 | 519,312 | 519,241 | 465,779 | 388,106 | 522,680 | 535,283 | 1,911,848 | 2,141,132 | ||||||||||||||||
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Subscription and services-based costs
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60,523 | 60,119 | 63,352 | 50,276 | 40,711 | 50,169 | 66,786 | 65,046 | 222,712 | 260,184 | ||||||||||||||||
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Bitcoin costs
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64,696 | 122,938 | 146,167 | 174,438 | 299,426 | 858,041 | 1,601,615 | 1,715,452 | 4,474,534 | 6,861,808 | ||||||||||||||||
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Amortization of acquired technology
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1,376 | 1,719 | 1,934 | 1,921 | 2,320 | 2,231 | 3,118 | 3,505 | 11,174 | 14,020 | ||||||||||||||||
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Total cost of revenue
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562,605 | 708,393 | 766,437 | 786,380 | 842,608 | 1,326,862 | 2,239,419 | 2,355,280 | 6,764,169 | 9,421,120 | ||||||||||||||||
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Gross profit
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$396,754 | $465,845 | $500,037 | $527,049 | $538,501 | $596,763 | $794,455 | $803,690 | $2,733,409 | $3,214,760 | ||||||||||||||||
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Product development
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154,350 | 174,201 | 168,771 | 173,284 | 194,986 | 206,825 | 226,567 | 253,448 | 881,826 | 1,013,792 | ||||||||||||||||
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Sales and marketing
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133,713 | 156,421 | 149,467 | 185,231 | 194,535 | 238,096 | 348,463 | 328,576 | 1,109,670 | 1,314,304 | ||||||||||||||||
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General and administrative
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101,598 | 100,508 | 115,980 | 118,164 | 129,495 | 136,386 | 153,902 | 159,420 | 579,203 | 637,680 | ||||||||||||||||
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Amortization of acquired customer assets
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1,294 | 1,294 | 1,003 | 890 | 890 | 905 | 983 | 1,077 | 3,855 | 4,308 | ||||||||||||||||
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Transaction and advance losses
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- | - | - | - | - | - | - | - | - | - | ||||||||||||||||
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Transaction loan and advance losses
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27,841 | 34,264 | 32,722 | - | - | - | - | - | - | - | ||||||||||||||||
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Transaction and loan losses
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27,841 | 34,264 | 32,722 | 32,132 | 108,883 | 37,603 | 15,198 | 15,986 | 177,670 | 63,944 | ||||||||||||||||
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Total operating expenses
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418,796 | 466,688 | 467,943 | 509,701 | 628,789 | 619,815 | 745,113 | 758,507 | 2,752,224 | 3,034,028 |
Selected Quarter:
31-Dec
2020
2020
Operating Income
Income after excluding Operating Expenses from Total Revenue
1.4%
1.4% —
Operating Income
Key metric that shows earnings potential of the company's business model
Selected Quarter:
31-Dec
2020
2020
Non-operating expenses
Cost usually unrelated to delivering service or manufacturing a product that business sells
8.6%
8.6% —
Other expense or income
Selected Quarter:
31-Dec
2020
2020
Earnings before Interest and Taxes (EBIT)
Income after excluding Operating and Non-operating Expenses from Total Revenue
7.2%
7.2% —
EBIT
Another income metric but unlike Operating Income it is closer to the ultimate income metric - Net Income by removing expenses that are not related to earning Revenue as they are supposed to be accidental and transitory
Selected Quarter:
31-Dec
2020
2020
Interest Expense and Income, Taxes
Expenses driven mostly by company management's choices, nature of business (capital intensive vs not) about financing (debt vs equity) and legal structure
0.4%
0.6% —
Interest expense
0.1% —
Income tax expense or benefit
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Interest expense (income)
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- | - | - | - | - | - | - | - | - | - | ||||||||||||||||
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Interest expense
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4,681 | 5,143 | 5,632 | 6,060 | 9,206 | 14,769 | 14,980 | 17,988 | 56,943 | 71,952 | ||||||||||||||||
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Interest and other expense
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- | - | - | - | - | - | - | - | - | - | ||||||||||||||||
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Interest and other income or expenses
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- | - | - | - | - | - | - | - | - | - | ||||||||||||||||
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Income before income taxes
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(38,022) | (7,216) | 32,003 | 391,448 | (105,356) | (12,230) | 35,146 | 298,407 | 215,967 | 1,193,628 | ||||||||||||||||
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Income tax expense or benefit
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129 | (476) | 2,606 | 508 | 535 | (752) | (1,369) | 4,448 | 2,862 | 17,792 |
Selected Quarter:
31-Dec
2020
2020
Net income (loss)
Ultimate measure of Income - Net result after excluding all expenses from Total Revenue
9.3%
9.3% —
Net income (loss)
It is a residue that is left from Total Revenue after paying all kind of expenses and belongs to all equity holders in the company. Some of these shareholders such Non-controlling interest or Preferred equity gets their share before Common shareholders
Basic Shares Outstanding
Basic shares outstanding as of certain dates reported by Company on its annual and quarterly filings, these numbers are NOT used calculation of basic EPS. They help to see share issuance by company in perspective
Selected Quarter:
31-Dec
2020
2020
EPS
Net Income / Shares Outstanding = EPS before dilution or Basic EPS; Net Income/ ( Shares Outstanding + potentially available shares from conversion of various option instruments)