Why Shares of Square Are Slipping After 4th-Qtr Earnings Beat

The transcript discusses Square's financial performance, highlighting a slight deceleration in revenue growth despite high expectations. Square's growth remains strong, exceeding 50% year-over-year. The discussion also covers Square's competitive edge over JP Morgan, emphasizing its evolution from a simple iPhone plug-in to a comprehensive merchant services provider. Square's strategy includes offering various services like lending, payroll, and scheduling, although it is still in the early stages of selling these add-ons to existing and new merchants.

What was the main reason for the slight disappointment in Square's revenue growth?

• They failed to meet their revenue growth guidance.

• There was a deceleration in revenue growth compared to previous quarters.

• Their growth was below 40%.

• They lost market share to competitors.

How did Square manage to outperform JP Morgan Chase in the merchant services market?

• By offering lower transaction fees.

• By focusing on large enterprises only.

• By initially introducing a device for iPhones and expanding services.

• By acquiring smaller competitors.

What was the original product that helped Square gain a foothold in the market?

• A merchant lending program.

• A restaurant scheduling tool.

• A device to plug into an iPhone.

• A comprehensive payroll service.

Which of the following services is NOT mentioned as part of Square's offerings?

• Merchant lending

• Payroll services

• Restaurant menu assistance

• Online advertising

What is a key factor in Square's strategy for capturing larger merchants?

• Focusing solely on small businesses

• Offering discounts on transaction fees

• Providing a wide range of add-on services

• Reducing operational costs