Square’s second-quarter results are in, and investors are pleased: The company’s stock price is up more than 9% during after-hours trading. The payment processing company reported a net loss of $27 million for the quarter, below analyst estimates. (That figure is down from $96 million the quarter prior.) Square’s quarterly revenue also beat expectations:
• Square earned $171 million in revenue during the quarter not including revenue from Starbucks. That includes $130 million earned from transactions, $30 million from software and data (aka Square Capital, paid business products like Instant Deposit, and its food property Caviar), and $11 million from hardware.
• Gross payment volume from merchants who earn more than $125,000 in sales annually grew 61% year-over-year, showing that the company can attract more than small businesses.
• The company lent $189 million through Square Capital in the second quarter, up 123% year-over-year.
• Despite bringing down its net loss, the company’s operating expenses were up 30% year-over-year, totaling $176 million in the second quarter.RR