Square reported strong third quarter financial results on Thursday driven by huge momentum in its Cash App product. Square said Cash App generated $2.07 billion of net revenue and $385 million of its Q3 gross profit, marking increases of 574% and 212% year over year, respectively.
Also of note, Square said Cash App accounted for $354 million of its third quarter subscription revenue. Meanwhile, Square said Cash App also generated $1.63 billion of bitcoin revenue and $32 million of bitcoin gross profit. Excluding bitcoin, Cash App revenue was $435 million, up 174% year over year.
Square didn't break out Cash App user numbers, but noted that Q3 daily transacting active customers using the service nearly doubled from the prior year and represented nearly a quarter of monthly transacting active Cash App customers.
As for the rest of the numbers, the payments company reported a Q3 net income of $37 million, or 8 cents a share. Gross profit was $794 million, up 59% over the same quarter last year, with adjusted EPS of 34 cents. Square no longer reports adjusted revenue. The company's total net revenue came to $3.03 billion, up 140% from a year ago.
Wall Street was looking for earnings of 16 cents a share on revenue of $2.07 billion.
A key metric for Square is its gross payment volume (GPV), which it said increased 12% to $31.7 billion. The company's third quarter transactional revenue came in at $925 million. Its subscription and services-based revenue climbed to $448 million, up 60% compared to the year-ago period. The company's hardware revenue was $27 million.
For the current quarter, Wall Street is expecting earnings of 23 cents a share with revenue of $2.15 billion. Shares of Square were up nearly 7% after hours.