What to expect from Square’s Q2 earnings

Square is revealing its second-quarter earnings tomorrow. Here’s what to look for when they drop:

Profitability: Last quarter, Square raised net revenue by 51% year-over-year, but the company also reported high operating costs leading to a loss. Analysts will be looking for indications that Square can be profitable.

Square Capital: Square’s Lending business doled out $153 million in loans and cash advances to its merchants in the first quarter. In March, the company expanded its business beyond cash advances to include loans. Investors will be curious how the shift is growing the business. 

Caviar and Fastbite: Square has two food delivery properties geared toward lunch crowds: Caviar and Fastbite. The products contribute revenue to its data products category (so does Square Capital). Be on the lookout for breakout numbers on its food biz or meaningful indications that it’s generating money for Square.  

Stock price: Since its debut on the stock market last fall, the stock has been all over the map ranging in price from $8.06 to over $15.90. Last quarter the stock took a 15% dive after earnings were announced. Today, it closed a percent and half down ahead of the earnings release tomorrow. RR