Square, Inc. Posts Narrower Loss In Q3; Revenue Up 32%

(RTTNews) - Square, Inc. (SQ) reported a third-quarter GAAP net loss of $32 million compared to a loss of $54 million, a year ago. Net loss per share was $0.09 for the third quarter of 2016, compared to a loss of $0.35 in the third quarter of 2015. On average, 15 analysts polled by Thomson Reuters expected the company to report a loss per share of $0.11 for the quarter. Analysts' estimates typically exclude special items.

In the third quarter of 2016, the company processed $13.2 billion in Gross Payment Volume, an increase of 39% from the third quarter of 2015. Total net revenue, which includes revenue from Starbucks, was $439 million in the third quarter of 2016, up 32% compared to the third quarter of 2015. Analysts expected revenue of $430.09 million, for the quarter.

Adjusted revenue, which excludes revenue from Starbucks and transaction costs, was $178 million in the third quarter of 2016, an increase of 51% from the third quarter of 2015. Transaction revenue was $388 million in the third quarter of 2016, up 38% from the third quarter of 2015.

For the fourth quarter of 2016, Square, Inc. expects total net revenue to be in the range of $438 million to $443 million. The company expects fourth-quarter adjusted revenue to be in the range of $182 million to $185 million.

For 2016, Square, Inc. expects total net revenue to be in the range of $1.695 billion to $1.700 billion. The company expects adjusted revenue to be in the range of $677 million to $680 million, representing 50% year-over-year growth at the midpoint.