Square's Cash App grows to 24 million active users

The company reported its fourth quarter financial results on Wednesday.

Square reported its fourth quarter financial results on Wednesday. The mobile payments processor reported a Q4 net income of $17 million, or 4 cents a share. When factoring in the company's sale of Caviar, net income jumps to $390.9 million, or 83 cents per share.

Gross profit was $527 million, up 39% over the same quarter last year, with adjusted EPS of 23 cents. Square no longer reports adjusted revenue. Nonetheless, Wall Street was looking for earnings of 21 cents a share on revenue of $593.07 million.

Square's gross payment volume (GPV), a key metric for the payments company, ticked up to $$28.6 billion, an increase of 25% from the same period a year ago. 

Looking at the rest of Square's balance sheet, the company's fourth quarter transactional revenue came in at $832 million. Revenue from its software and data products, including Square Capital and Cash App, climbed to $281 million, up 45% compared to the year-ago period. Square said gross profit from the Cash App was $144 million in Q4. The company's hardware revenue was $22 million.

Another strong metric for the company this quarter comes from Cash App subscribers. Square said Cash App had more than 24 million monthly active customers in December 2019, more than double year over year.

For the current quarter, Square expects EPS between 16 cents and 18 cents. Analysts are looking for earnings of 16 cents a share with revenue of $610.5 million.