Square tops Q1 revenue estimates, raises guidance for fiscal year

The mobile payments service run by Twitter CEO Jack Dorsey reported a Q1 net loss of $9 million, or 29 cents a share.

Square reported first quarter earnings and revenue after the bell Thursday -- its second report since going public last November. Though the results were mixed, strong guidance gave the company's shares a slight boost after hours.

The mobile payments service run by Twitter CEO Jack Dorsey reported a Q1 net loss of $9 million, or 29 cents a share (statement).

Non-GAAP losses narrowed to 14 cents a share on revenue of $379 million, up 51 percent over the same quarter last year.

Wall Street was expecting a loss of 9 cents a share on revenue of $344 million.

Square's share price jumped up around six percent in after market trading on news that the company was raising its guidance for the fiscal year. The company now expects full year net revenue in the range of $615 million to $635 million. Its previous forecast was a range of $600 million to $620 million.

Looking at the rest of Square's balance sheet, the company's hardware revenue for the quarter came in at $16 million million, due in large part to the launch of its contactless and chip reader, which began shipping in December.

Square said it continued to see momentum for its new readers as it promoted the products through "unique partnerships." Sellers can now buy the reader on Amazon and in Apple, Staples, Best Buy, and Target stores around the U.S.

The company's gross payment volume was another big win for the quarter, coming in at $10.3 billion, an increase of 44 percent from the same quarter a year ago.

Revenue from its software and data products, including its lending service Square Capital, climbed to $24 million, up nearly 200 percent compared to the same period of last year. Square says it has advanced nearly $153 million to sellers via Square Capital in Q1 alone.

Square revealed it the earnings release that it was transitioning Square Capital from cash advances to traditional bank loans. Square said the move will provide sellers more flexibility and help attract new investors to the service.

For the current quarter Square expects adjusted revenue between $151 million to $156 million.