While prior to the pandemic Cash App profit growth exhibited a ~100% year-over-year uptick, this increased to 276% YoY in July 2020, and then moderated to ~180% YoY in Aug/Sep.Īccordingly, when Square reports 3Q21 earnings today after the close, Deutsche Bank’s Brian Keane expects the growth to slow down to 39% year-over-year, which is also a drop from ~94% in 2Q21 as “fading stimulus benefits and difficult comps,” come into play. This was especially true during the pandemic when the peer-to-peer offering grew at a rapid pace at the peak of the stimulus programs. Over the past few years, the increasing success of the Cash App has been Square’s ( SQ) biggest growth driver.
