Payments processor Square Inc. posted an adjusted quarterly profit that brushed past Wall Street estimates, as merchants made more transactions using its devices. The company, led by Twitter Inc. Chief Executive Jack Dorsey, has been attracting larger merchants through new products such as Square Capital, Caviar, Invoices, Instant Deposit.
Gross payment volume, the total dollar amount of all card payments processed by sellers, rose 31 percent to $17.9 billion in the fourth quarter.
Operating expenses rose 40 percent to $252.8 million, largely due to a 43 percent rise in product development costs and a 55.5 percent rise in marketing costs.
The San Francisco-based company’s loss widened marginally to $15.7 million, or 4 cents per share, in the quarter ended Dec. 31 from a year earlier.
On an adjusted basis, it earned 8 cents per share, while analysts on average had expected a profit of 7 cents per share, according to Thomson Reuters I/B/E/S.
The company’s adjusted revenue rose 47 percent to $282.7 million, above analysts’ estimates of $266.3 million.
Square’s shares were up 1.3 percent at $46.49 in after-hours trading.
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Written By: Tommy Lightfoot Garrett
Photographs are Courtesy: AP; Square
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