The statistic highlights Square’s Revenue by Segment from Q1 FY 2016 to the latest quarter.
Based in San Francisco, Square Inc. (NYSE: SQ) is a merchant service aggregator, financial services, and a mobile payment company. The company has expanded itself into a small business service company after they started marketing software and hardware payments products. Jack Dorsey and Jim McKelvey launched the company back in 2009 and launched its first app and service in 2010. The company has been traded as a public company on the New York Stock Exchange (NYSE) since November 2015 as a symbol of SQ.
Square broadly divides its main business generators by revenue into four parts: Transactions revenue where businesses pay a fee to the company for each transaction utilizing its services and products; Subscriptions and Services comes from sources such as its Square Capital, Cash App platform, and Instant Transfers; Hardware includes the sale of chip readers, stands, registers, terminals, and card swiping devices; and bitcoin sales which are peer-to-peer payment (P2P) service the option of buying and selling bitcoin using the balances on the Square platform.
The year 2016
Transaction revenue was $300 million in the Q1 2016 attributable to free processing credits for seller-to-seller referrals. Subscriptions and Services revenue was $24 million in the Q1 2016 as Caviar and Square Capital remained the most significant contributors to data and software product revenue. On the other side, Hardware revenue in the Q1 was $16 million, where the majority increase came from sales of contactless and chip reader. Starbucks’ transaction revenue was $39 million, and gross profit was $2 million in Q1 2016, benefiting from the renegotiated Starbucks processing rates. Till the end of the year, the growth was consistent with minor fluctuations, and total net revenue was $1.7 billion for the full year, up by 35% compared to 2015, mainly impacted by Starbucks’ transition of the infrastructure.
The year 2017
Transaction-based revenue was $403 million in Q1 2017, up by 34% YoY as the value of the managed payments solution increased. Whereas, subscription and services-based revenue were $49 million in the Q1 2017, up by 106% YoY, where the increase shows the ability to launch new products and feature improvements for existing products. Hardware revenue was $9 million, and the decline was driven by the majority backlog of pre-orders for our contactless and chip readers. Total net revenue was $2.2 billion for the full year of 2017, an increase of 30% from the entire year of 2016, where transaction-based, subscription, and services-based and hardware revenue considerably increased.
The year 2018
Total net revenue was $669 million in the first quarter of 2018, up 45% year over year, includes $34 million of bitcoin revenue as the company fully launched the ability to buy and sell bitcoin in the Cash App. Transaction-based revenue was $523 million in the Q1 2018, up by 30% YoY, which continued to benefit from growth in higher-margin products. Subscription and services-based revenue were $97 million in Q1 2018, up by 98% YoY, driven primarily by Instant Deposit, Caviar, and Square Capital. Hardware revenue in Q1 2018 was $14 million, up by 60% YoY, driven by the launch of Square Register. For the full year of 2018, total net revenue was $3.3 billion, an increase of 49% from the entire year of 2017 with significant enhancements across different segments.
The year 2019
The segments reported steeping growth across different quarters. For the full year, total net revenue was $4.71 billion, which grew by 43% from the entire year of 2018. Transaction-based revenue was $832 million in Q4 2019, up by 25% YoY. In contrast, subscription and services-based revenue was $281 million in Q4 2019, up by 45% YoY, and driven primarily by Cash App, Square Capital, and Seller subscription and services products. Hardware revenue in Q4 2019 was $22 million, up 23% YoY, driven primarily by Square Terminal and Square Reader for contactless and chip.
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