Publicly traded payment facilitators Square, Shopify, Blackbaud and PayPal all recently reported earnings from the first quarter of 2018. Revenues grew across the board and PFs reported responding to market trends with expanded solutions for their merchant clients. We have highlights from the earnings reports below.
“Customers are used to buying in person, on their computers, and on their phones, and Square provides sellers with the tools they need to offer a seamless experience across these channels. We integrated Weebly technology with Square to create a feature-rich, self-serve website builder that helps sellers create a custom online store. Square Online Store gives buyers more options, including the ability to purchase online and then pick up in store (a feature typically only available through enterprise sellers), as well as shoppable Instagram galleries.” – Square Q1 2019 Shareholder Letter
- Total net revenue of $959 million, up 43% from 1Q 2018
- Adjusted revenue of $489 million, up 59%
- Gross payments volume (GPV) of $22.6 billion, up 27%. GPV from larger sellers grew 37% over 1Q 2018. Larger sellers accounted for 51% of the total GPV – an increase from 47% in the first quarter of 2018.
- Subscription and services-based revenue of $219 million, up 126%
- Adjusted EBITDA of $62 million, up 72%
“The information age is rapidly changing how commerce is done and by whom. By harnessing these changes to empower entrepreneurs, Shopify is meeting a need that is not only global and growing, but that is likely to continue growing for the foreseeable future.” said Tobi Lütke, Shopify’s CEO.
- Revenue of $320.5 million, up 50% from 1Q 2018
- Revenue for the company’s Subscription Solutions division up 40% to $140.5 million. The increase was driven primarily by an increase in merchants joining the platform, resulting in an increase in monthly recurring revenue
- Gross payments volume of $4.9 billion
- Gross profit dollars up 46% to $180.3 million
“We continued to rapidly advance our existing applications, brought new solutions to market, and closed on the acquisition of YourCause which creates lasting value for our customers and shareholders, and grows our addressable markets,” said Mike Gianoni, Blackbaud’s president and CEO.
- Total GAAP revenue of $215.8 million, up 5.7%
- GAAP recurring revenue of $198.1 million in, up 9.5% and representing 91.8% of total GAAP revenue
- Total non-GAAP revenue of $216.5 million, up 5.9%
- Non-GAAP recurring revenue of $198.8 million, up 9.7% and representing 91.8% of total non-GAAP revenue.
“Through our partnership with JPMorgan Chase, PayPal is one of the first companies to introduce real-time payments for both consumers and merchants in the U.S., part of our ongoing effort to offer our customers faster and more flexible access to their funds. In addition, our investment in MercadoLibre – one of the largest online commerce and payments ecosystems in Latin America – was a meaningful development in our drive to increase our international scale and scope,” said Dan Schulman, PayPal’s president and CEO.
- Revenue of $4.13 billion, up 12% from 1Q 2018
- 9.3 million net new active accounts, up 15% from 8.1 million during the first quarter last year
- 2.8 billion payment transactions, up 28% from last year
- $161 billion in total payment volume, up 25% on a foreign currency-neutral basis