It's Hip To Be Square: Another Beat And Raise In Q2

One of the main highlighted of Square's report was a 41 percent year-over-year growth in revenue to $240 million, which marks an acceleration from the 39-percent growth recorded in the prior quarter, Keane stated. The strong revenue performance can be attributed to the company's "speed, simplicity, and brand strength," which is boosting overall gross payment volume gains.

Also, Square's margin expansion in the quarter was "robust" as the company benefited through scale and automation, the analyst added. In fact, continued momentum could result in incremental margin expansion as the company continues to implement machine learning and product developments investments.

Finally, Square's one-time $2.7 million write off in the quarter from loan loss isn't a concern but worth monitoring as the company continues to extend large loans to sellers.

At time of publication, shares of Square were down 4.55 percent at $25.20.