I’ve recently been blessed with the opportunity to try out my writing skills for the public side of Motley Fool. My first article was on PayPal and appeared a couple of days ago: http://discussion.fool.com/1081/an-obvious-winner-of-the-e-comme…
My second article was published today and it covers three fast-growing services Square is offering its customers. While the payment solution space offers low margins, if Square can use that as their foot in the door, to sell its customers much more lucrative services, it could do very well.
Since its IPO in November 2015, Square has given its shareholders a wild ride, swinging from lows just a shade higher than $8 to highs near $16. While the company has yet to turn a profit on a GAAP-basis, many other metrics show consistent growth across the company’s platforms. In Square’s 2016 third quarter, the company reported $178 million in adjusted revenue, a 51% increase year over year. The company’s gross payment volume (GPV) was $13.2 billion, a 39% increase from the year ago period.
Square offers basic point of sale (POS), online, and mobile payments solutions to its customers. It also provides more sophisticated services like customizable platforms for merchants; business loans, instant pay features, and even restaurant delivery services. Most of these extra features are listed under Square’s software and data product segment, the company’s fastest growing revenue category.
The software and data product segment is loaded with extra features that Square’s merchants seem to be utilizing, judging by the results. This segment’s revenue grew an incredible 140% year over year in its most recently reported quarter.
Whether Square can continue its current success probably depends on three of the company’s fastest growing services found within this category: Instant Deposit, Square Capital, and Caviar.
Please read the whole thing at http://www.fool.com/investing/2016/12/22/3-business-segments…
As I research the company more, I grow more intrigued. No position yet, but its on my watchlist.
MasterCard (MA), Nestle (NSRGY), PayPal (PYPL), and Verizon (VZ) Ticker Guide
See all my holdings at http://my.fool.com/profile/CMFCochrane/info.aspx