Square stock is up to $11.66 per share after Tuesday’s stellar quarterly report. The financial services company reported earnings of $0.09 a share on revenue of $439 million. Analysts had expected a loss of $0.11 per share on $430 million in sales. Not only were sales above expectations and losses mitigated, Square has three more promising bits of news.
1) Its not-so-mutally-beneficial relationship with Starbucks is coming to a close soon. Starbucks transaction revenue was $7 million this quarter, and Square expects it to be only nominal next quarter.
2) Square Capital, the company’s loan product is helping to boost its software and data products segment, which brought in $35 million this quarter.
3) Square has a growing client base of businesses that generate more than $500,000 in gross payment volume annually. In Q3 2014, businesses of this size comprised only 8% of its customer base, this past quarter they made up 14%. RR