Square reports $462 million in Q1 2017 revenue, gross payment volume of $13.6 billion

By Ken Yeung for Venture Beat

Square’s ($SQ) first quarter 2017 earnings are out, revealing that it generated total net revenue of $462 million, a 22 percent annual increase and an earnings per share loss of $0.04. It continues to see its gross payment volume increase, coming in at $13.6 billion — a 33 percent year-over-year increase, but a drop from last quarter’s $13.7 billion.

Wall Street analysts had been expecting the company to generate $450.76 million in revenue for the quarter with an earnings per share loss of $0.08.

Shares in the commerce technology company were down 2.71 percent for the day to close at $18.30. In after-hours trading, the stock was up nearly 6 percent.

With respect to gross payment volume, Square claimed that its larger sellers continue to boost its bottom line, those that generate more than $125,000 in annualized GPV. The company claims that in Q1 2017, GPV from these sellers grew 44 percent annually and accounted for 43 percent of the total GPV, up from 39 percent the same time last year.

Some other interesting statistics the company revealed include:

  • In March 2017, nearly 50 percent of all Square invoices were from a mobile device, a 24 percentage point increase from October 2016.
  • Total number of active invoice sellers stands at 225,000 to drive nearly $700 million in first-quarter gross payment volume.
  • Net income improved from a loss of $97 million in Q1 2016 to a loss of $15 million in the same time this year.
  • Square Capital has provided loans to 40,000 businesses totaling $251 million, up 64 percent annually. The loss rate is approximately 4 percent.
  • Hardware revenue dropped 44 percent year over year to $9 million, while subscription and services-based products generated $49.06 million in revenue, up from $23.8 million the previous quarter.

In March, the company expanded into its fourth market, the United Kingdom.

Square also increased its guidance for the full year, saying that its total net revenue will be between $2.12 billion to $2.16 billion.