受新冠病毒疫情影響,支付公司Square預計將遭受重大財務打擊。
該公司最大的客戶群體是中小企業,他們根據銷售額支付費用,但這些客戶貢獻的收入將大大減少。公司的中小企業客戶包括餐館、酒吧和商店等,不是關門歇業就是陷入危機,交易額也隨之減少。
宏橋信托投資集團(BTIG)的分析師馬克·帕爾默說,受此影響,Square第一季度的營收可能會下降61%。他表示,盡管該公司應該能夠挺過疫情,但也會付出慘痛代價。
“它能經受經濟衰退的影響。”帕爾默表示,“話雖如此,預計該公司的收入將大幅下滑。”
Square的首席執行官是杰克·多爾西,該公司是眾多依賴中小企業的科技公司之一,而中小企業是最易受到疫情沖擊的群體。例如,為餐館和生活服務供應商(如電工和水管工)提供廣告銷售和其他服務的Yelp情況類似,它因此在本月早些時候解雇了1000名員工,給1100名員工放了假。
多爾西同時也是推特的首席執行官,他沒有提過Square是否會步Yelp后塵裁員。在最近的一次投資者電話會上,該公司表示,計劃放緩招聘、減少差旅、暫停添置房地產。
該公司拒絕就本文置評。
但投資銀行史蒂芬斯(Stephens)的分析師布雷特·赫夫預計,Square會推出成本削減措施。他說:“我們會看到他們勒緊褲腰帶。”他認為該公司可能會砍掉一些承包商、削減銷售傭金,甚至可能裁員。
中小企業遭受的損失無疑還在攀升。雖然有幾個州已經開始重啟,但全國范圍內任何企業想要恢復元氣都需要一段時間。
Square的盈利方式包括對商家的每筆銷售收取費用,商家還會額外訂閱公司軟件使用庫存和工資管理等功能。它還通過Square Capital和Cash App為小企業提供貸款,消費者使用Cash App可以互相轉賬。
今年2月,Square表示第一季度營收將達到13.4億至13.5億美元。然而,不久之后,由于疫情爆發,該公司將業績預期下調至13億至13.4億美元。公司最新業績展望顯示收入仍將增長36%至40%,遠好于一些分析師的預期。
此外,Square最初預計2020年全年將實現59億至59.6億美元的收入。但后來撤回了這一預測,承諾將在5月6日公布第一季度收益時提供更多細節。
Square的股價較2月高點下跌了近30%,當時每股的交易價為85.70美元。
宏橋信托投資集團的帕爾默說,Square業務放緩可能會讓競爭對手有機可乘。例如,移動支付公司Clover可能會利用其母公司、金融技術供應商費哲(Fiserv)財力雄厚的優勢,在危機期間抓緊前進。
根據費哲領導層的說法,2019年Clover處理了超過1000億美元的付款,同比增速達40%。宏橋信托投資集團的帕爾默表示,去年Square的交易額提升了約25%,達到1062億美元,比Clover稍微領先。
Square或許能夠通過增加新功能來應對威脅。該公司推出了一項新服務,讓網上訂餐的顧客可以選擇在路邊取餐,另一項服務讓送餐員可以把食物放到顧客家門口,雙方無需產生任何身體接觸。
Square還給正在苦苦掙扎的商戶們提供折扣,幫助他們存活。今年4月,該公司免除了為這些客戶跟蹤發票、支付員工工資和發送電子營銷郵件的費用。他們還退還了客戶3月繳納的訂閱費,推遲了通過Square Capital借款的客戶的還款期限。
Square還希望通過聯邦政府的緊急工資保障計劃為小企業發放貸款,為客戶提供幫助。但尚不清楚在該計劃第一輪資金用完之前,Square是否發放了貸款。
“他們正竭盡所能,想讓這些客戶活下去。”美國銀行(Bank of America)的分析師賈森·庫普弗伯格說道,“Square的問題不是他們的商戶銷售額下降了怎么辦,而是如果商戶破產停業了怎么辦。這是可能出現的最糟糕的后果。”
但三位分析人士一致認為,盡管會鼻青臉腫,Square最終應該能擺脫疫情困境。帕爾默提到了Square的現金儲備。2019年底,該公司擁有10.5億美元的現金和現金等價物,公司因此擁有一張比較大的安全網。此外,上個月,該公司還宣布計劃借款10億美元。
“他們的資產負債表其實非常好看。”庫普弗伯格說,“可以舒舒服服地忍受兩年嚴重經濟衰退的影響。”(財富中文網)
譯者:Agatha
受新冠病毒疫情影響,支付公司Square預計將遭受重大財務打擊。
該公司最大的客戶群體是中小企業,他們根據銷售額支付費用,但這些客戶貢獻的收入將大大減少。公司的中小企業客戶包括餐館、酒吧和商店等,不是關門歇業就是陷入危機,交易額也隨之減少。
宏橋信托投資集團(BTIG)的分析師馬克·帕爾默說,受此影響,Square第一季度的營收可能會下降61%。他表示,盡管該公司應該能夠挺過疫情,但也會付出慘痛代價。
“它能經受經濟衰退的影響。”帕爾默表示,“話雖如此,預計該公司的收入將大幅下滑。”
Square的首席執行官是杰克·多爾西,該公司是眾多依賴中小企業的科技公司之一,而中小企業是最易受到疫情沖擊的群體。例如,為餐館和生活服務供應商(如電工和水管工)提供廣告銷售和其他服務的Yelp情況類似,它因此在本月早些時候解雇了1000名員工,給1100名員工放了假。
多爾西同時也是推特的首席執行官,他沒有提過Square是否會步Yelp后塵裁員。在最近的一次投資者電話會上,該公司表示,計劃放緩招聘、減少差旅、暫停添置房地產。
該公司拒絕就本文置評。
但投資銀行史蒂芬斯(Stephens)的分析師布雷特·赫夫預計,Square會推出成本削減措施。他說:“我們會看到他們勒緊褲腰帶。”他認為該公司可能會砍掉一些承包商、削減銷售傭金,甚至可能裁員。
中小企業遭受的損失無疑還在攀升。雖然有幾個州已經開始重啟,但全國范圍內任何企業想要恢復元氣都需要一段時間。
Square的盈利方式包括對商家的每筆銷售收取費用,商家還會額外訂閱公司軟件使用庫存和工資管理等功能。它還通過Square Capital和Cash App為小企業提供貸款,消費者使用Cash App可以互相轉賬。
今年2月,Square表示第一季度營收將達到13.4億至13.5億美元。然而,不久之后,由于疫情爆發,該公司將業績預期下調至13億至13.4億美元。公司最新業績展望顯示收入仍將增長36%至40%,遠好于一些分析師的預期。
此外,Square最初預計2020年全年將實現59億至59.6億美元的收入。但后來撤回了這一預測,承諾將在5月6日公布第一季度收益時提供更多細節。
Square的股價較2月高點下跌了近30%,當時每股的交易價為85.70美元。
宏橋信托投資集團的帕爾默說,Square業務放緩可能會讓競爭對手有機可乘。例如,移動支付公司Clover可能會利用其母公司、金融技術供應商費哲(Fiserv)財力雄厚的優勢,在危機期間抓緊前進。
根據費哲領導層的說法,2019年Clover處理了超過1000億美元的付款,同比增速達40%。宏橋信托投資集團的帕爾默表示,去年Square的交易額提升了約25%,達到1062億美元,比Clover稍微領先。
Square或許能夠通過增加新功能來應對威脅。該公司推出了一項新服務,讓網上訂餐的顧客可以選擇在路邊取餐,另一項服務讓送餐員可以把食物放到顧客家門口,雙方無需產生任何身體接觸。
Square還給正在苦苦掙扎的商戶們提供折扣,幫助他們存活。今年4月,該公司免除了為這些客戶跟蹤發票、支付員工工資和發送電子營銷郵件的費用。他們還退還了客戶3月繳納的訂閱費,推遲了通過Square Capital借款的客戶的還款期限。
Square還希望通過聯邦政府的緊急工資保障計劃為小企業發放貸款,為客戶提供幫助。但尚不清楚在該計劃第一輪資金用完之前,Square是否發放了貸款。
“他們正竭盡所能,想讓這些客戶活下去。”美國銀行(Bank of America)的分析師賈森·庫普弗伯格說道,“Square的問題不是他們的商戶銷售額下降了怎么辦,而是如果商戶破產停業了怎么辦。這是可能出現的最糟糕的后果。”
但三位分析人士一致認為,盡管會鼻青臉腫,Square最終應該能擺脫疫情困境。帕爾默提到了Square的現金儲備。2019年底,該公司擁有10.5億美元的現金和現金等價物,公司因此擁有一張比較大的安全網。此外,上個月,該公司還宣布計劃借款10億美元。
“他們的資產負債表其實非常好看。”庫普弗伯格說,“可以舒舒服服地忍受兩年嚴重經濟衰退的影響。”(財富中文網)
譯者:Agatha
Payment company Square is expected to take a big financial hit because of the coronavirus pandemic.
The company will collect far less from its largest group of customers, small and medium-size businesses, which pay fees based on their sales. Some of those are restaurants, bars, and shops that are either closed or in crisis, and therefore handling fewer transactions.
As a result, Square could see as much as a 61% drop in first-quarter revenue, according to Mark Palmer, an analyst with investment bank BTIG. Although the company should be able to survive the pandemic, it will be painful, he says.
“It can withstand a downturn,” Palmer says. “With that said, we are anticipating that the company is going to see a very steep drop.”
Square, led by CEO Jack Dorsey, is among the many tech companies that are largely dependent on small and medium-size businesses—the most vulnerable segment in the wake of the pandemic. For example, Yelp, which sells advertising and other services to restaurants and local service providers like electricians and plumbers, has similarly suffered, prompting it earlier this month to lay off 1,000 workers and furlough another 1,100.
Dorsey, who is also CEO of Twitter, hasn't said whether Square will follow suit in cutting its workforce. During a recent investor call, the company said it plans to slow hiring, reduce travel, and pause on adding new real estate.
The company declined to comment for this article.
But Brett Huff, an analyst at investment bank Stephens, expects that some cost cutting is coming. “We do expect them to tighten their belt,” he says, suggesting the company could cut contractors, sales commissions, or possibly even lay off workers.
What is clear is that the losses for small and medium-size businesses are mounting. And while they're starting to reopen in a few states, any nationwide recovery will take some time.
Square makes money by collecting fees on every sale by merchants and through subscriptions for additional software for managing functions like inventory and payroll. It also offers small-business loans through Square Capital as well as Cash App, an app that gives consumers the ability to transfer money to each other.
In February, Square said that it would collect $1.34 billion to $1.35 billion in first-quarter revenue. However, soon after, the company cut its guidance because of the epidemic to between $1.30 billion and $1.34 billion. The company's latest outlook still represents a 36% to 40% increase in revenue, a far rosier picture than some analyst projections.
Furthermore, Square had originally predicted that it would collect $5.9 billion to $5.96 billion in revenue during full-year 2020. But it later withdrew that forecast and promised to provide more details about it when it reports first-quarter earnings on May 6.
Square's shares are down nearly 30% from their peak in February, when the stock traded at $85.70.
A slowdown in Square’s business could let competitors gain ground, BTIG’s Palmer says. For example, mobile payments company Clover may be able to use the deeper pockets of its parent company, financial technology provider Fiserv, to push ahead during the crisis.
In 2019, Clover processed more than $100 billion in payments, growing at a clip of 40% year over year, according to Fiserv's leadership. BTIG's Palmer says that slightly trails Square, which last year increased its total number of transactions by about 25% to $106.2 billion.
Square may be able to counter that threat by creating additional features in its products. It introduced one that lets customers who order restaurant food online chose to pick up their meals at the curb and another that lets them get their food delivered to their doorstep without any physical contact with the delivery person.
Square is also helping its struggling business customers survive by giving them discounts. In April, it waived the fees for its products that help those customers track invoices, pay employees, and send email marketing pitches. It also refunded subscription fees it collected from them in March and delayed payments for customers that borrowed money through Square Capital.
Square also hopes to help customers by distributing small-business loans through the federal government's emergency Paycheck Protection Program. But it's unclear whether Square actually granted any loans before the program ran out of its first round of money.
“They want to do everything they can to keep these customers afloat,” says Jason Kupferberg, Bank of America analyst. “The problem for Square would not only be that they have a merchant whose sales are down, but what if that merchant goes out of business? That’s the worst possible outcome.”
But ultimately Square should emerge from the pandemic, albeit bloodied, three analysts agreed. Palmer pointed to Square’s cash reserves. At the end of 2019, the company had $1.05 billion in cash and cash equivalents, giving the company a relatively large safety net. Additionally, last month, the company announced plans to borrow up to $1 billion.
“Their balance sheet is actually in very good shape,” Kupferberg says. “They could comfortably endure two years of a major downturn.”