Wall Street likes Square’s first earnings report as a public company

Not too shabby.
Not too shabby.
Image: AP Photo/Richard Drew
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Square’s stock jumped 3.5% in after-hours trading today (March 9) shortly after the payment-processing company reported better-than-expected earnings in the fourth quarter.

While the Jack Dorsey-led company hasn’t yet returned to profitability—which it achieved in the second quarter but failed to do so in the third—it posted solid revenue numbers.

Transaction revenue, at $298.5 million, made up 80% of its sales in the fourth quarter, but software and data products, which includes its food-delivery service Caviar, saw a 51% increase to $22.4 million in revenue from the year-ago period. For the full year, software and data revenue, at $58 million, increased nearly fivefold.

Square Capital, its lending division run by ex-Yahoo exec Jackie Reeses, is growing at a fast clip, too. Capital lent $150 million in the fourth quarter, and $400 million over the full year.

The company priced its IPO at $9 in November, well below its expected range. Shares now trade around $12.