Square's Marketing Expense Is Exploding
One thing that stood out on Square's (NYSE: SQ) second quarter earnings report from earlier this month is the surge in sales and marketing spend. The line item grew to nearly $60 million last quarter, up about 50% year over year and 20% sequentially.
The growth spurt in marketing spend could be a sign that Square is facing intense competition. The increase outpaced revenue growth, which climbed 26% (41% on an adjusted basis). That's despite Square boasting of its marketing advantage over competitors since it's in direct contact with its merchants nearly every day.
Here's what Square's management had to say about the growth in marketing expense in the second quarter.
Source: Fool.com
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