Square handily tops Q1 targets, ups 2017 revenue forecast

Square's Q1 revenue was $462 million, up 22 percent over the same quarter last year.
Written by Natalie Gagliordi, Contributor

Square handily topped first quarter earnings and revenue targets after the bell Wednesday.

The mobile payments and small business service provider reported a Q1 net loss of $15 million, or four cents a share, compared to a net loss of $82 million, or 29 cents a share, the year prior.

Square's Non-GAAP earnings are finally in the black at 5 cents a share on revenue of $462 million, up 22 percent over the same quarter last year.

Wall Street was expecting a loss of 8 cents a share on revenue of $450.7 million.

The company's gross payment volume was another big win for the quarter, coming in at $13.6 billion, an increase of 33 percent from the same quarter a year ago.

Subscription and services-based revenue, which includes the company's lending service Square Capital and food delivery business Caviar, was $49 million, up 106 percent from the first quarter of 2016. Square says it has advanced nearly $251 million to sellers via Square Capital in Q1 alone.

Hardware revenue dropped by 44 percent to $9 million, though Square attributes the decrease to the fact that the company was fulfilling a backlog of pre-orders for its contactless and chip-card reader in the first quarter of 2016.

Given the strong quarter, Square said it's raising its revenue guidance for fiscal 2017. The company now expects revenue in the range of $2.12 billion to $2.16 billion, up from its previous guidance range of $2.09 billion to $2.15 billion.

For the current quarter, Square expects revenue from $532 million to $538 million, with earnings between 3 cents to 5 cents a share. Square's stock rose nearly 5 percent in late trading.

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