Square has recently released its earnings report for Q1, 2017. The company has made a good showing and despite adjusted losses of 4 cents to a share, the report resulted in a 7 percent stock jump in initial, after-hours trading.
The payments company, that has Twitter CEO Jack Dorsey at its helm, generated an impressive $462 million in revenue. This is a 22 percent year over year increase over the last quarter. It also beats investor expectations, which had stood at $451 million. The company did report adjusted losses of 4 cents to a share, however, the losses were moderate as compared to Wall Street expectations, which had predicted adjusted losses of 8 cents to a share.
Square’s total transactions stood at $13.6 Billion. While far shot of rivals like PayPal, the volume of transactions have showed a healthy rise — up 33% year-over-year. Most of these came through payments transactions. The category accorded for almost $403 million and interestingly, a significant portion of it took place over iPads.
Next up is the subscriptions and service based categories, which generated around $49 million. This is an increase of over 100 percent in the span of a single year. This was put down to good performance from Square Capital, Caviar and Instant Deposit, all of which offer a varied suite of services to businesses.
Stock price for the payments company stood at around $18. This was double its IPO price of $9 from back in 2015. Interestingly, the company now has a $7 Billion market cap as well. This shuts down a source of snide remarks aimed at the company after its IPO valuation turned out to be a lot less than the $6 Billion accorded to it in its last private round.
Well, Jack Dorsey seems to be having a good time. The CEO of Twitter and Square has faced a lot of skepticism centered around his ability to run both the companies successfully, after he was brought back in 2015. While Twitter recently registered a good quarter earlier, Square seems to be doing reasonably well too. Dorsey was recently in the news for having purchased $9.5 million worth of Twitter stock. It was also reported that he was selling Square stock in the same report. Well, guess he would have done better to wait a bit!