Block subscription revenue continues to grow, says RBC Capital

RBC Capital believes Block’s subscription and services revenue will continue to grow as a percentage of Square’s transaction revenue. The company continues to move upmarket, with 40% of gross payment volume coming from over $500,000 annualized GPV merchants in Q2 versus 35% last year, and continues to expand internationally, the analyst tells investors in a research note. RBC sees a path to 11% upside to its Seller Subscription & Services revenue and gross profit estimates. It keeps an Outperform rating on Block with a $90 price target.