Square reported quarterly earnings and revenue that beat analysts’ expectations on Wednesday.
Here’s how the company did compared with what Wall Street expected:
- Adjusted EPS: 7 cents vs. 5 cents expected according to Thomson Reuters.
- Adjusted Revenue: $257 million vs. $244.9 million expected according to Thomson Reuters.
- Gross Payment Volume: $17.4 billion vs. $17.03 billion expected according to StreetAccount.
Shares of Square fell 3 percent in after hours trading.
The company posted year over year adjusted revenue growth of 45 percent, according to the financial report. Square has beaten Wall Street estimates five quarters in a row. Shares are up nearly 200 percent in the past 12 months. The stock hit an all-time high of $37.75 on Monday.
Gross payment volume (GPV) continued to be a critical metric for the young mobile payments company. Square topped Wall Street’s expectations on the metric, posting volume of $17.4 billion, or 31 percent growth year over year. That compares with 32 percent year over year growth in the second quarter of 2017.
Based on year-to-date performance, the company raised full-year adjusted earnings per share guidance to a range of 24 to 25 cents, up from a previous range of 21 to 23 cents. Square now expects full-year adjusted revenue in a range between $963 million to $966 million, up from a range of $925 million to $935 million.
Net loss was $16 million in the third quarter of 2017, compared to a net loss of $32 million in the third quarter of 2016. Net loss per share, basic and diluted, was $0.04, compared to a net loss per share of $0.09 in the third quarter of 2016.
Non-GAAP operating expenses of $186 million were up 34 percent year over year, representing 72% of Adjusted Revenue.
Subscription and services-based revenue was $65 million in the third quarter of 2017, up 84 percent year over year. Instant Deposit, Caviar, and Square Capital contributed the majority of subscription and services-based revenue.
Source: Tech CNBC
Square falls 3% after solid earnings, week after record close