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Block (SQ) Boosts Portfolio Offerings With GoParrot Acquisition

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Block’s (SQ - Free Report) Square has completed the acquisition of a digital ordering and marketing platform for restaurants named GoParrot.

GoParrot offers a powerful omnichannel software through which restaurants can seamlessly connect with their customers.

The company further equips restaurants with advanced marketing software that provides multi-stage automated efforts for campaigns to attract more customers.

On the back of GoParrot’s solutions, Square sellers will be able to design their brand with a customizable white-label app. Buyers can also leverage the app for placing orders and availing lucrative deals. Moreover, restaurants can retain their customers as the latter can easily track the loyalty rewards on mobile.

Further, GoParrot’s advanced marketing software can help Square sellers with the marketing reports to monitor customer engagement and revenue growth.

GoParrot’s offerings are available in the United States, Canada, Australia and the United Kingdom. Thus, the acquisition is expected to help Block expand its presence in these countries.

Block, Inc. Price and Consensus

Block, Inc. Price and Consensus

Block, Inc. price-consensus-chart | Block, Inc. Quote

Growth in Restaurant Efforts

The latest buyout bodes well for strengthening the efforts of SQ to offer advanced technological solutions to restaurants.

Block’s robust portfolio offerings, including POS software, Kitchen Display Software, Contactless Orders and Delivery, and Restaurant POS Hardware, are focused on helping restaurants gain more customers.

Further, Block has been gaining momentum across restaurants for a while on the back of its on-demand delivery service. SQ recently partnered with the online food ordering and delivery service provider DoorDash to make the service available for all Square Online users in Canada.

With this service, restaurants, bars, breweries, convenience stores or any seller using Square Online across Canada can use DoorDash’s white-label fulfillment platform DoorDash Drive to deliver orders directly placed on their websites.

In addition to this, Block made its Kitchen Display Software available for all kinds of restaurants in the United States, the United Kingdom, Canada, Australia and Ireland. The software is aimed at helping subscribed users keep track of online ordering and delivery partners.

Global Portfolio Expansion

The recent acquisition is in sync with SQ’s growing efforts toward expanding its portfolio offerings and providing advanced solutions worldwide.

Recently, Block rolled out an integrated countertop point-of-sale solution Square Register in Ireland to help sellers smoothly run and grow their businesses.

Additionally, SQ released the Early Access Program in Spain, France and Ireland, aimed at providing an integrated set of omnichannel tools to businesses to seamlessly sell products and services.

Block made Cash App Pay available to its sellers across the United States through a software update. Via this app, sellers can accept payments made by customers using their Cash App account either by scanning the QR code at checkout or clicking a button on their mobile devices.

We believe that Block’s persistent efforts toward global expansion will continue to contribute well to its top-line growth in the near term and the long haul.

Zacks Rank & Stocks to Consider

Currently, Block carries a Zacks Rank #3 (Hold). Investors interested in the broader technology sector can consider some better-ranked stocks like Avnet (AVT - Free Report) , Monolithic Power Systems (MPWR - Free Report) and MaxLinear (MXL - Free Report) . While Avnet and Monolithic Power Systems currently sport a Zacks Rank #1 (Strong Buy), MaxLinear carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Avnet has gained 5.7% in the past year. The long-term earnings growth rate for AVT is currently projected at 37.2%.

Monolithic Power Systems has gained 24% in the past year. The long-term earnings growth rate for MPWR is currently projected at 25%.

MaxLinear has rallied 11.6% in the past year. The long-term earnings growth rate for MXL is currently projected at 20%.

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