NEW YORK, U.S. - All was not going well with Twitter Inc’s CEO and Co-Founder, Jack Dorsey, as the microblogging site suffered in the financial markets, after failing to attract new users ...
• Starbucks contributed $7 million worth in Square transactions
• Square Capital impresses; records 70 percent growth
• Square net loss narrows to 9c per share from 35c per share
NEW YORK, U.S. - All was not going well with Twitter Inc’s CEO and Co-Founder, Jack Dorsey, as the microblogging site suffered in the financial markets, after failing to attract new users for months, but Dorsey's other venture, Square has brought him some relief.
Square, a mobile payments company, generated a higher than expected quarterly revenue - processing more transactions and raising its full-year revenue forecast. This helped the company lift its share price by 6.8 percent in after-hours trading on Tuesday.
Square reported a third-quarter revenue jump of 39 percent to $13.2 billion as it continued to attract larger merchants to its platform.
In the process, it also surpassed analysts’ prediction of $12.47 billion worth payment volumes.
In the latest quarter, larger retailers represented 43-percent, slightly higher than last quarter’s 42 percent as the company continued its shift from a traditional user base of pop-up shops and food trucks.
The company said that Starbucks Corp contributed $7 million in transaction revenue in the quarter as the coffee chain continued its movement in the company's payment network. Square added that it expected only a ‘nominal’ contribution to revenue and transaction profit from Starbucks in the current quarter.
Square, which went public last November, is a multipurpose financial assistant that helps in facilitating payments between businesses and customers by using a credit card reader that turns any mobile phone into a payment terminal. The company’s added benefits are point-of-sale registers, invoice software and loans.
Its Chief Financial Officer, Sarah Friar said that revenue growth was helped by ‘momentum’ in Square Capital, the company’s lending program which added newer products such as Instant Deposits.
Square Capital processed $208 million in loans in the quarter, a staggering 70-percent more than the first quarter.
The company’s total net revenue grew to $439 million from $332.2 million.
In the process, its net loss attributable to common stockholders narrowed to $32.3 million, or 9 cents per share, from $53.9 million, or 35 cents per share.
By the end of this year, the company expects total net revenue to be in the range of $1.695 billion to $1.700 billion and a revenue range between $677 million to $680 million, representing 50 percent year-on-year growth.