- Square is expected to post $0.26 EPS on $4.71 billion revenue for Q4 2022, with investors watching for sustained growth in uncertain economy.
- Key metrics like Total Payment Volume growth, Cash App engagement and profitability margins will be closely monitored this quarter.
- Management’s guidance for 2022 revenue of $17.6-$17.7 billion and outlook for 2023 growth opportunities amid competition will be important.
Square is set to report its fourth quarter 2022 earnings results after the market closes on Thursday, February 23. Analysts expect the digital payments company to post earnings per share of $0.26 on revenue of $4.71 billion.
Investors will be watching Square’s results closely to see if the company can sustain growth amidst economic uncertainty. Key areas of focus will likely include:
Total Payment Volume Growth
Gross Payment Volume (GPV) is an important metric for Square as it indicates the total dollar amount processed through its payment services. In Q3, Square’s GPV grew 17% year-over-year. Investors will want to see if Square can maintain double-digit GPV growth.
Cash App Engagement
Square’s Cash App has been a major growth driver, enabling users to send money, invest, and more. Cash App generated $2.67 billion in revenue in Q3, up 51% year-over-year. Engagement metrics like monthly active users and transaction volume will be closely watched.
Profitability
With rising costs and macroeconomic challenges, profitability could come under pressure. Margins and bottom-line earnings will be important to monitor this quarter.
2022 Guidance
Square has forecast full year 2022 revenue of $17.6 billion – $17.7 billion. Management’s guidance for 2023 and commentary around growth opportunities will be key.
Competition
PayPal, Block and others are battling for share in digital payments. Management’s view of the competitive landscape will be important to listen for.
