Square Inc. delivered better-than-expected results Wednesday though its profit forecast fell short of expectations.
Shares were up 0.9% in after-hours trading.
The company posted third-quarter net income of $29 million, or 6 cents a share, after recording net income of $20 million, or 4 cents a share, in the year-prior quarter. Adjusted earnings per share climbed to 25 cents from 13 cents, whereas analysts surveyed by FactSet were modeling 20 cents.
posted total revenue of $1.27 billion for the quarter, or $602 million after subtracting transaction-based costs and bitcoin costs. Excluding those costs, the company generated $431 million in revenue a year ago, and analysts were expecting $597 million for this latest quarter.
Square said that total net revenue for its Cash App was $307 million in the quarter, while gross profit for the app was $123 million. Excluding bitcoin, revenue was $159 million and gross profit was $121 million.
Gross payment volume increased to $28.2 billion from $22.5 billion and came just above the FactSet consensus, which called for $27.9 billion. Square disclosed that 55% of volume came from sellers doing more than $125,000 in annualized gross payment volume. These sellers accounted for 54% of volume in the June quarter.
For the December quarter, Square projects 19 cents to 21 cents in adjusted EPS. The FactSet consensus was for 25 cents.
Square shares have risen 9.3% so far this year, while the S&P 500
has climbed 23%.