Square’s (NYSE: SQ) CEO Jack Dorsey is having a tough time these days. A recent activist shareholder action had investors questioning his dual role as the CEO of Twitter and Square. For now, the management appears to have brokered peace.

Square’s Financials

Square’s gross revenues grew 41% over the year and 4% over the quarter to $1.31 billion, ahead of the market’s forecast of $1.19 billion. Adjusted earnings for the quarter grew 64% over the year to $0.23 per share, also beating the market’s forecast of $0.21 per share.

By segment, Transaction revenues grew 25% over the year to $832.2 million. Subscription and services revenues improved 45% to $281.4 million driven by the strong performance of Cash App which accounts for $183 million in revenues. Hardware revenues grew 23% to $22.3 million and Bitcoin revenues jumped 239% to $177.6 million.

Among other metrics, Gross Payment Volume (GPV) grew 25% over the year to $28.64 billion, ahead of the market’s forecast of $28.54 billion. The growth in its GPV was attributed to the adoption of its services across larger sellers. Square classifies larger sellers as those that report over $125,000 of annualized GPV and mid-market sellers as those with annualized revenues of more than $500,000. GPV from larger sellers grew 33% over the year to account for 55% of its total GPV. Mid-market sellers also improved 42% over the year to account for 27% of its total GPV.

For the first quarter, Square forecast gross revenues of $1.34-$1.36 billion, with an adjusted earnings of $0.16-$0.18 per share and a net loss of $0.04-$0.02 per share. It expects to end 2020 with revenues of $5.9-$5.96 billion and a loss of $0.15-$0.11 per share. The company had revised its earnings expectations downwards after announcing the issuance of $1 billion in aggregate convertible notes. On an adjusted basis, it expects to end the year with an EPS of $0.90-$0.94. The market was looking for revenues of $1.2 billion for the quarter with an adjusted EPS of $1.20 and revenues of $5.61 billion for the year with an adjusted EPS of $0.91.

Square’s Cash App Growth

One of the biggest drivers for Square’s growth has been its Cash app. Cash app was set up as a peer-to-peer payments platform allowing users to transfer funds to each other using the mobile app. But Square has been adding several new features to the solution, making some wonder if it could become a “real consumer banking platform”. The app now has over 24 million active users – a number that has grown 60% over the year. Some of the new features added on the app allow users to conduct commission-free stock trading. It has also embedded Bitcoin in the app to allow users to trade in the digital cryptocurrency. More recently, Square tied up with Marqueta to release a debit card.

Square’s analytics reveal that customers who engage in bitcoin investing or equity investing generate two to three times the revenue of other customers across Square’s consumer-facing ecosystem. It claims that its investing feature has seen the fastest adoption of any product in the Cash ecosystem, but it hasn’t begun to monetize the potential fully.

Square has been investing heavily in promoting its Cash app. To attract new customers and drive usage of the app, Square had rolled out Boosts last year that offered instant cash back for purchases made with the Cash Card. Cash competes with the likes of PayPal’s Venmo. But reports suggest that the strong marketing push coupled with innovative features are helping Square grow much faster. Square still has some way to go considering that Venmo boasts of a user base of over 40 million.

Earlier this year, activist investor Elliott Management had met with Twitter directors to express its concerns over Jack’s dual role and the need to find a new Twitter CEO. But the investors have struck a deal with the Twitter board to allow Jack to continue to steer both companies.

Its stock is trading at $62.44 with a market capitalization of $27.18 billion. It had climbed to a 52-week high of $87.25 in February last year. Its stock had fallen to a 52-week low of $54.41 in September last year.