The reason the projection for Q1 was only 40M is because it wasn't until March that Square reached the 1M/day milestone (http://techcrunch.com/2011/03/02/square

The reason the projection for Q1 was only 40M is because it wasn't until March that Square reached the 1M/day milestone (http://techcrunch.com/2011/03/02/square-now-processing-1-million-in-mobile-payments-per-day/ http://techcrunch.com/2011/03/02/square-now-processing-1-mil...). So in January and February they were doing less than 1M per day.