Square delivered better-than-expected second-quarter earnings Wednesday after the bell.
The mobile payments service run by Twitter CEO Jack Dorsey reported a Q2 net loss of $27 million, or 8 cents a share. Revenue was $439 million, up 41 percent over the same quarter last year.
Wall Street was bracing for a loss of 11 cents a share on revenue of $406 million.
Square is once again raising its guidance for the fiscal year. The company now expects adjusted revenue to be in the range of $655 million to $670 million, up significantly from the previous range of $615 million to $635 million.
For the current quarter Square expects net revenue between $410 million to $420 million.
Square's stock price climbed nearly 9 percent after market trading.
Looking at the rest of Square's balance sheet, the company's transactional revenue came in at $365 million. Square's deal with Starbucks brought in $33 million despite being scheduled to end next quarter. Square revealed that it's negotiating an extended agreement with Starbucks beyond the third quarter to allow the coffee company additional time to complete its transition to another payment processor, which Square says "has been taking longer than anticipated."
The company's hardware revenue dropped slightly from $16 million last quarter to $11 million this quarter. Square says the revenue drop was due to above average hardware revenue in Q1. That's the period Square shipped most of the orders for its contactless and chip reader, which began shipping in December.
The company's gross payment volume ticked up to $12.5 billion, an increase of 42 percent from the same quarter a year ago.
Revenue from its software and data products, including its lending service Square Capital, climbed to $30 million, up 130 percent compared to the year-ago period. Square says it advanced $189 million to sellers via Square Capital in Q2.