Square published its second quarter financial results on Thursday, beating earnings estimates. The San Francisco-based payments company also announced that DoorDash has agreed to acquire Caviar, Square's food ordering platform, for $410 million in a mix of cash and DoorDash preferred stock.
"This transaction allows us to increase our focus on and investment in our two large, growing ecosystems—one for businesses and one for individuals," Square said in a letter to shareholders. "It creates clarity in how we operate and a clearer purpose and alignment for our planning, investment, and work moving forward."
For the second quarter, Square reported adjusted net income per share of 21 cents on adjusted revenue of $563 million, up 46 percent year-over-year.
Analysts were looking for earnings of 16 cents on revenue of $557.07 million.
Square's gross payment volume (GPV), a key metric for the payments company, came to $26.8 billion, up 25 percent year-over-year. GPV in Q2 from larger sellers grew 34 percent year-over-year and accounted for 54 percent of total GPV, up from 50 percent of total GPV in the second quarter of 2018.
GPV from Square's largest sellers—mid-market sellers—grew 45 percent year-over-year and accounted for 26 percent of total GPV, up from 22 percent of total GPV in the second quarter of 2018.
Transaction-based revenue was $776 million in Q2, up 24 percent. Subscription and services-based revenue was $251 million, up 87 percent. Revenue growth was driven primarily by Cash App, Square Capital, Caviar, and Instant Deposit for sellers.
Hardware revenue in Q2 was $22 million, up 21 percent. That growth was driven primarily by Square Terminal and Square Reader for contactless and chip.
For Q3, Square expects adjusted revenue in the range of $590 million to $600 million. Analysts were expecting revenue of $598.9 million.