A report on Wednesday on quarterly results of Square Inc., the San Francisco-based payments processor showed better results than previously expected by the analysts. This happened in light of their efforts in attracting larger number of customers and offering brand new services.
This Californian company had posted a per share loss of 4 cents on the revenue of 452 million dollars. The Chief Executive Officer of Square is Jack Dorsey who is also the Chief Executive Officer and co-founder of Twitter Inc. This company started with a little white card reader, but they didn’t stop there. Now their new reader helps a bunch of sellers to accept chip cards and NFC payments. They even have a cash app that allows people to pay each other back instantly.
Their motto is to empower all businesses, whether small or big, to grow using their payment services. They are now empowering independent electricians to send invoices, favorite food trucks with delivery options, ice cream shops to pay their employees, and giving coffee chains enough capital to set up their second, third or fourth location.
The expectation of analysts on an average, according to Thomson Reuters, was a per share loss of 9 cents on the revenue of 450 million dollars.
The shares of the company rose by 8 percent in aftermarket trading.
As compared to the same period a year ago, the company went up 34 percent by processing 13.7 billion dollars in payments.
Sarah Friar, the Chief Financial Officer of the company said that their growth was boosted by bigger customer businesses like small chain stores. They had launched a payment system earlier this month, which would be more accustomed to retailers of any and all sizes.
The payments volume of Q4 from large customers increased by 47% over the year accounting for 42% of the total payments volume. This was up by 39% from last year.
The company’s Capital Business, which offers loans to their customers in exchange for a decided fixed percentage of daily card sales of the customers, has also contributed to the growth in their revenue. The loans for the last quarter were $248 Million, which is up from 2015 Q4 by 68%.
Their expenditure in marketing and product development has also cut into the bottom line. Their operating expenses have risen 15% to 180.5 million dollars in Q4 2016.
The Q1 2017 revenue estimation by analysts is 450 million dollars, whereas Square has estimated it in between 440 and 452 million dollars.
Square has estimated a revenue in between 2.09 and 2.15 billion dollars for the complete year. This was also in line with analyst’s average expectation of 2.12 billion dollars.