Q2 Earnings Show Strong Momentum for Major PFs: PayPal, Square, Shopify and Blackbaud

Second quarter for this year has seen lots of acquisitions and partnerships for some of the major PF brands, as well as strong momentum to kick off the back half of the year. And while the payments ecosystem continues to evolve at a rapid pace, these publicly traded PFs seem to be thriving.

Highlighted in this article are PayPal, Square, Shopify and Blackbaud.


“In June 2018, Cash App customers spent $250 million with Cash Card, nearly tripling since December 2017 and representing $3 billion on an annualized basis.” From Square Earnings Report.

Revenue growth for the company continued on the upswing for the fifth consecutive quarter as Square for Restaurants – the brand’s first POS created specifically for full-service establishments – significantly enhanced the company’s continuing financial success.

  • Total net revenue is up 48% YoY at $815 million.
  • Adjusted revenue is also up 60% YoY at $385 million.
  • Compared to first quarter of this year, total net revenue and Adjusted revenue are both up by 45% and 51%, respectively.
  • Gross Payment Volume (GPV), up 30% YoY, closed out at $21.4 billion for the quarter.
  • Bitcoin revenue also accounted for $37 million of total net revenue for second quarter.
  • And for the first time, half of all GPV came from larger sellers.


 “Our strategic decision to become an open platform committed to partnerships has increased the value that PayPal can offer our customers, both consumers and merchants,” said PayPal President and CEO Dan Schulman.

In addition to four major acquisitions announced in Q2, PayPal reports upward momentum in both their financial and operating sectors.

  • The company reports a revenue growth of 23% to $3.86 billion (22% on a foreign currency-neutral basis).
  • The GAAP operating margin closed the quarter at 14.8% with non-GAAP at 21.3%.
  • 7 million active accounts have been added with net new active accounts up 18%.
  • Payment transactions are also up 28% at 2.3 billion.
  • And total payment volume is up 29% at $139 billion.


“The diversity of our revenue drivers and of our merchant base contributed to our strong revenue growth this past quarter,” stated Shopify CFO Amy Shapero.

Shopify’s Q2 financial results prove impressive right out of the gate with a 62% revenue spike YoY.  And it doesn’t stop there.

  • Total revenue for the second quarter is up 62% from Q2 2017 at $245.0 million.
  • Subscription Solutions revenue grew from 55% to $110.7 million.
  • Merchant Solutions revenue is also up 68% to $134.2 million.
  • Gross Merchandise Volume (GMV) grew by 56% or $3.3 billion.
  • Gross Payments Volume increased to $3.6 billion and accounted for 40% of total GMV processed for Q2.
  • Gross profit dollars increased 58% to $137.0 million.


“We’ve continued moving the business toward a subscriptions-based revenue model with our mix of recurring revenue now standing at 90 percent of total, a new all-time high for us,” said Mike Gianoni, Blackbaud’s president and CEO.

And this strong momentum for subscription-based revenue (up 16% and accounting for an impressive 90% of total revenue) holds steady in all the company’s Q2 financial results.

  • Total GAAP revenue is up 11.5% at $213.7 million.
  • GAAP recurring revenue totaled $192.7 million (up 15.8%) and accounted for 90.2% of total GAAP revenue.
  • Total non-GAAP revenue is up 11.8% at $214.6 million.
  • Non-GAAP recurring revenue is up 16.2% ($193.6 million) and accounts for 90.2% of total non-GAAP revenue.
  • Non-GAAP organic revenue increased 4.8% and non-GAAP organic recurring revenue by 8.0%.


*Generally Accepted Accounting Principles (GAAP) income equates to operating income, operating margin and earnings per share.

*Non-GAAP earnings are calculated by adding back the non-cash expenses of depreciation and amortization to a company’s operating income.