Square Falls Despite Q2 Earnings Beat

Square, Inc. SQ shares dropped after the close on Thursday after it reported earnings.

The payments company reported second-quarter earnings of 21 cents per share, topping the analyst consensus estimate of 16 cents by 31.25% on adjusted net revenue of $562.8 million.

The company noted revenue was continuing to grow.

"We continued to generate strong revenue growth at scale and are investing in our business to drive long-term growth," the company said in a press release.

Square also announced it was selling its food delivery company, called Caviar, to DoorDash for $410 million. San Francisco-based Square's main business is processing financial transactions, including with its Cash app.

Highlights

• Total revenue grew 44% year over year to $1.17 billion
• Adjusted revenue grew 46% year over year to $563 million.
• Net loss was $7 million in the second quarter, compared to a net loss of $6 million in second quarter 2018.
• Adjusted EBITDA was $105 million in the second quarter of 2019, up 54% year over year.

Square's stock was down 8% after the close to $74.43.

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