Square delivers strong Q2 results, doubles subscription revenue
Square delivered solid second quarter earnings financial results after the bell on Wednesday.
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The mobile payments and small business service provider reported a Q2 net loss of $16 million, or 4 cents a share, compared to a net loss of $27 million, or 8 cents a share, the year prior.
Square's Non-GAAP earnings clocked in at 7 cents a share on revenue of $552 million, up 26 percent over the same quarter last year.
Wall Street was expecting a loss of 5 cents a share on revenue of $536 million.
The company's gross payment volume was another big win for the quarter, coming in at $16.4 billion, an increase of 32 percent from the same quarter a year ago.
Transaction-based revenue was $482 million, up 32 percent year over year. Subscription and services-based revenue, which includes the company's lending service Square Capital and food delivery business Caviar, was $59 million, up nearly double what it was in the second quarter of 2016. Square says it has advanced nearly $318 million to sellers via Square Capital in Q2.
Hardware revenue dropped by 7 percent to $10 million, though Square attributes the decrease to higher-than-normal sales in the first half of 2016 associated with pre-orders for its card readers.
Square is once again raising its revenue guidance for fiscal 2017. The company now expects revenue in the range of $2.14 billion to $2.16 billion, up from its previous guidance range of $2.12 billion to $2.16 billion.
For the current quarter, Wall Street is expecting an earnings loss of 6 cents a share with revenue of $562.3 million. Square responded with a Q3 earnings guidance between 4 cents and 5 cents a share with revenue between $562 million and $568 million.