Square (SQ) Lifts FY Revenue Guidance

Square, Inc. (NYSE: SQ) today announced updates to its second quarter and full year 2018 guidance to reflect the impact of its acquisition of Weebly, Inc., which closed today, and its recent issuance of $862.5 million in aggregate principal amount of 0.50% convertible senior notes due 2023 (“Notes”).

The revisions to Square’s second quarter and full year 2018 guidance, which was previously announced on May 2, 2018, are only a result of the transactions outlined below.

Square completed its acquisition of Weebly on May 31, 2018. Based on the transaction:

• Square is raising its guidance for total net revenue and Adjusted Revenue to reflect the contribution from Weebly. Total net revenue reflects the impact of the deferred revenue adjustment related to the purchase accounting of the acquisition. Adjusted Revenue excludes the impact of the deferred revenue adjustment.
• Square is revising its guidance for net income (loss) per share to reflect the estimated effect of the following items: the amortization of acquisition-related intangible assets, deferred revenue adjustments related to the purchase accounting of the acquisition, cash and share-based compensation expense associated with employee retention, and other acquisition-related costs.
• Square is maintaining its Adjusted EBITDA guidance.

Square issued the Notes on May 25, 2018. Based on the transaction:

• Square is revising its guidance for net income (loss) per share to reflect the increase in interest expense associated with the issuance.

(Street sees Q2 EPS of 12c on revenue of $360 million and FY EPS of $0.46 on revenue of $1.43 billion)

We have not reconciled Adjusted EBITDA and Adjusted EPS guidance to their GAAP equivalents as a result of the uncertainty regarding, and the potential variability of, reconciling items such as share-based compensation expense and weighted-average fully diluted shares outstanding. Accordingly, a reconciliation of these non-GAAP guidance metrics to their corresponding GAAP equivalents is not available without unreasonable effort. It is important to note that the actual amount of such reconciling items would have a significant impact if they were included in our Adjusted EBITDA and Adjusted EPS.

As a reminder, Square will release financial results for the second quarter of 2018 on August 1, 2018, after market close.

You May Also Be Interested In

• SpaceX retail investors turn sellers for first time since IPO
• Perion Network revenue falls 5% in Q2 2026 amid web channel decline
• Tonix Pharma (TNXP) Tops Q2 EPS by 27c