Two companies that many on the board follow have become one.
SQ buys Afterpay
https://investors.squareup.com/news/news-details/2021/Square…
https://s27.q4cdn.com/311240100/files/doc_financials/2021/q2…
14 Likes
There is a natural and obvious synergy here but in case for whatever reason the deal doesn’t go through, (I wonder if Tencent will support it), Afterpay also announced a beat on their full year 2021 financial results in case anyone wanted to keep track…
Aug 2 (Reuters) - Afterpay Ltd (APT) :
FY21 TRADING UPDATE
FY21 UNDERLYING SALES A$21.1 BILLION VERSUS A$11.1 BILLION
FY GROUP REVENUE A$925 MILLION VERSUS A$519.2 MILLION
FY21 MERCHANT REVENUE A$822 MILLION VERSUS A$433.8 MILLION
AS AT 30 JUN 2021 ACTIVE CUSTOMERS 16.2M VERSUS 9.9M
UNDERLYING SALES CONTRIBUTION FROM AFTERPAY’S IN-STORE CARD EXCEEDED A$2 BILLION DURING FY21
AS AT 30 JUN 2021 ACTIVE MERCHANTS 98.2K VERSUS 55.4K
10.5 MILLION ACTIVE NORTH AMERICA CUSTOMERS AT END OF FY21, UP FROM 5.6 MILLION AT 30 JUNE 2020
AS AT 30 JUN 2021 NORTH AMERICA ACTIVE MERCHANTS 28.4K VERSUS 11.5K
NET TRANSACTION MARGIN (UNAUDITED) FOR FY21 IS EXPECTED TO BE ABOVE 2%
FY21 Key Highlights
? Continued global growth during FY21 and strong operating performance achieved across all regions.
? FY21 underlying sales of $21.1 billion, a 90% increase on the prior corresponding period (pcp).
? On a constant currency3 basis, the Group delivered a 102% increase in FY21 underlying sales on pcp ($22.4 billion).
? This result sees Afterpay exceed its previously stated objective to reach $20 billion in 10
underlyingsales12monthsaheadoftarget .
? Active customers during FY21 grew to 16.2m, an increase of 63% on pcp (9.9m at 30 June 2020), and approximately 25k new customers joining the platform globally, per dayduring FY21. North America11 (NA) and the United Kingdom (UK) reached 10.5m and 2.1m active customers respectively.
? Length of customer tenure on the Afterpay platform continues to result in higher frequency in transaction behaviour with ~93% of FY21 underlying sales coming from repeat customers. Afterpay’s longest-tenured consumers are now transacting more than 30 times per annum.
? Afterpay’s active merchant network now exceeds 100k globally. During FY21 active merchants increased by 77% to 98.2k (up from 55.4k as of 30 June 2020), driven by strong partnership momentum in both North America with 28.4k (up 148% on pcp) and the UK with 6.7k (up 501% on pcp).
? Group revenue6 (unaudited) of approximately $925m grew 78% on pcp and was 88% higher in constant currency.
? Afterpay merchant revenue7 (unaudited) of approximately $822m was achieved in FY21, representing an approximate 90% increase on FY20.
? On a constant currency basis , Afterpay merchant revenue was approximately $875m,
representing an approximate 102% increase on FY20.
? Afterpay merchant revenue margin (unaudited) remained firm during FY21 and is in line with what was achieved in FY20. Merchant revenue margins remain consistent across all major regions.
12 Likes
and to match the synchronised disclosure, Square also pre-announced their results today too…
https://seekingalpha.com/pr/18417122-square-inc-announces-se…
Square (NYSE:SQ): Q2 Non-GAAP EPS of $0.66 beats by $0.35; GAAP EPS of $0.40 beats by $0.45.
Revenue of $4.68B (+143.8% Y/Y) misses by $370M.
Q2 gross payment volume increased 29% from the previous quarter as the Seller and Cash App ecosystems continue to gain traction.
Q2 gross payment volume of $42.8B, up from $33.1B in Q1 and $22.8B in Q2 2020.
Cash App reached 40M monthly transacting active customers in June.
The company released its Q2 earnings early in conjunction with its planned $29B acquisition of Afterpay.
Shares -0.5% AH.
This is going to leave me with a combined holding of 13% which I am going to need to manage down whatever I feel about the virtues of the acquisition.
Ant
5 Likes
As a reminder - Square includes within its seller ecosystem:
Point of sale hardware as well as in-person software such as Point of Sale and Square for Restaurants, online software such as Square Online and Invoices, and other software products
For any Lightspeed holders out there, the important read across from the Square results are:
Transaction-based revenue was $1.23 billion in the second quarter of 2021, up 80% year over year
Subscription and services-based revenue was $685 million in the second quarter of 2021, up 98% year over year
Software and integrated payments have been the fastest- growing products in the Seller ecosystem, delivering average annual gross profit growth of nearly 50% over the past four years, and have improved seller retention
Hardware revenues rose from $19.322m to $43.726 for Q2 YoY
Seller ecosystem expansion in Canada was called out
Cash App for business is seeing rapid take off
It’s not an easy report format to digest but if anyone wants to study it, you can find it here…
https://s27.q4cdn.com/311240100/files/doc_financials/2021/q2…
Ant
11 Likes