Jack Dorsey’s Square posts $379m revenue for first quarter as losses narrow
Payment processing firm Square, started by Twitter founder Jack Dorsey, has reported revenue of $379m (£262m), a 51 per cent increase year-on-year, beating analysts' expectations.
Analysts had been expecting the company to report $344m in revenue. The mobile payment firm reported sales of $374.4m in the previous quarter.
Transaction revenue was $300m, while Starbucks transaction revenue was the next biggest contributor to the total, at $39m.
The firm posted a loss of $0.29 per share for the first quarter of 2016 – narrowed from the same quarter of last year, when it recorded a $0.33 loss per share.
Square also raised its 2016 guidance and now expects to post earnings before interest, taxes, depreciation and amortisation (Ebitda) of $8m-$14m – it was previously predicting Ebitda would fall in the range of $6m-$12m.
Shares dipped by over two per cent in in after hours trading.
Square floated on the New York Stock Exchange in November last year, making a stunning debut on the index with the stock closing the first day of trading up 45 per cent from its initial pricing of $9 per share.
Shares in Square are up by around 50 per cent in the last three months.
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Meanwhile, Dorsey’s other, better-known venture, Twitter, has not fared so well. While its first quarter results proved a pleasant surprise to investors last week, the stock hit an all-time low just two days ago, dropping to $13.90 after unveiling another new feature – Twitter Connect.
The stock is down over 15 per cent in the last month.
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