Square Continues To Prove Itself, One Quarter At A Time

Square Inc SQ is nearing all-time highs following a strong first quarter that saw the company beat already high expectations.

Quarterly Print, In Review

The company reported several strong metrics in the quarter, including a 39-percent increase in revenue year-over-year and subscription services-based revenues grow 106 percent due to growth in Square Capital, Instant Deposit and Caviar, the company’s food delivery acquisition.

Square has raised its full-year adjusted revenue guidance by $10 million and raised its EBITDA margin guidance by 100 basis points to 13 percent.

Stifel's Take

Analysts at Stifel are maintaining a Buy rating on Square and upped their price target from $18 to $21 following the earnings beat.

“We maintain our positive view as Square builds a uniquely positioned micro I SMB payment and services ecosystem,” said Stifel analyst Scott Devitt. “Square continues to move up market and gain traction with larger merchants, offer useful new products/services to broaden its potential market, drive traction with ancillary services, and has entered a new geography which should support further expansion.”

Shares of Square were seen up over 9 percent on Thursday.

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Square Exceeds High Expectations, Sets Even Higher Bar For The Rest Of The Year