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Square easily 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 loss of $16 million, or 4 cents a share. Square’s Non-GAAP earnings clocked in at 7 cents a share on revenue of $257 million, up 45 percent over the same quarter last year.
Wall Street was looking for earnings of 5 cents a share on revenue of $244.6 million.
Square’s gross payment volume (GPV), a key metric for the payments company, ticked up to $17.4 billion, an increase of 31 percent 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 44 percent year over year, attributing 48 percent of GPV for the quarter.
Transaction-based revenue was $510 million, up 31 percent year over year. Subscription and services-based revenue, which includes the company’s lending service Square Capital and food delivery business Caviar, was $65 million, up 84 percent from the third quarter of 2016. Square says it has advanced nearly $303 million to sellers via Square Capital in Q3.
Hardware revenue remained flat compared to last quarter at $10 million. Square said hardware sales have normalized after higher-than-average sales in the first half of 2016 associated with pre-orders for its card readers.
For the current quarter, Wall Street is expecting earnings of 6 cents a share with revenue of $254.05 million. Square responded with a Q4 earnings guidance between 5 cents and 6 cents a share with revenue between $262 million and $265 million.
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