Square Inc. (SQ) reported massive second-quarter earnings on Tuesday, cashing in on the popularity generated by bitcoin’s success.
According to its second-quarter earnings report, Square beat analyst expectations and posted a significant net profit from its payment service and its Cash App, which lets users buy and sell bitcoin. Square, led by founder and chief executive Jack Dorsey, reported adjusted earnings per share of 17 cents in Q2, down from 21 cents in a similar quarter last year.
The report from CNBC claimed the earnings call significantly beat Wall Street estimates and an analyst poll conducted by Refinitiv, which projected an average adjusted loss per share of 5 cents. The company’s net loss stood at $11.5 million, up 71.6 percent from last year’s $6.7 million.
According to the earnings report, the company’s largest revenue growth occurred with Cash App, which brought in $281 million in gross profit with total revenue of $1.2 billion. Revenue generated by bitcoin increased 600% from the year before, totaling $875 million. Bitcoin’s gross profit also increased by 711% year-over-year at $17 million.
Square attributed the increase in revenue and profits to an increase in customer demand. The payments company revealed the app had 30 million active monthly transacting users as of June.
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