Square topped third quarter earnings and revenue targets Wednesday after the bell. The mobile payments service run by Twitter CEO Jack Dorsey reported a Q3 net income of $29 million, or 6 cents a share. Square's Non-GAAP earnings clocked in at 25 cents a share on revenue of $602 million, up 40% over the same quarter last year.
Wall Street was looking for earnings of 20 cents a share on revenue of $596.38 million.
Square's gross payment volume (GPV), a key metric for the payments company, ticked up to $28.1 billion, an increase of 25% from the same period a year ago. GPV from larger sellers, defined by Square as merchants generating more than $125,000 in annualized revenue, grew 34% year over year, attributing 55% of GPV for the quarter.
The company's third quarter transactional revenue came in at $817 million. Its subscription and services-based revenue climbed to $280 million, up 68% compared to the year-ago period. Square says it has advanced nearly $563 million to sellers via Square Capital in Q3. The company's hardware revenue was $22 million.
Also of note, Square said Cash App accounted for $159 million of its third quarter subscription revenue and that bitcoin generated $2 million of Q3 gross profit.
For the current quarter, Wall Street is expecting earnings of 25 cents a share with revenue of $621.24 million. Square responded with a Q4 earnings guidance between 19 cents and 21 cents a share with revenue between $585 million and $595 million. Shares of Square were up around 2% after hours.