(Reuters) – Payments processor Square Inc. beat analysts ‘ estimates for its quarterly profit on Wednesday as it earned more from its subscription services and, in particular, of Bitcoin-friendly App.
FILE PHOTO: An advertisement for the Square Inc, the payment processor will be given out to a supplier site, along with the High Line in New York, New York March 9, 2016. REUTERS/Shannon Stapleton
The San Francisco-based company best known for its signature-small-white-credit-card readers that can be connected to a smartphone, has been aggressively expanding into a wide range of financial services ranging from the provision of credit to the accounting software.
Subscription services, on the basis of the turnover, including, in the middle of the income from the sales of software jumped by 68% to $279.8 million for the third quarter ended September 30, Cash App, revenue more than doubled to $159 million.
Square Cash App, which directly competes with PayPal’s Holdings, Inc. Venmo app, which allows users to send money to each other for free. The app charges to the companies, as the user may choose to deposit money directly from the app to their bank accounts, and then wait for a few days.
The gross payment volume is the total amount of all credit card payments will be processed through the sellers, which increased by 25%, to $28.23 billion in the first quarter of the year. GPV of the larger vendors accounting for 55% of the total), as the GPV of the mid-market, merchants – their largest customer base – accounted for only 27% of the total. Transaction-based revenues increased by approximately 25%.
In the square there is the attraction of the bigger sellers are using the newer products, such as the lending services unit, the main Square of the Capital city, and the CashApp.
The company, which was founded and headed by Twitter Inc. Chief Executive Officer Jack Dorsey, has said its net profit rose to $29.4 million, or 6 cents a share, in the quarter that ended in Sep. 30, from $ 19.6 million, or 4 cents a share, a year earlier. (a little bit.m/2Nq3jAx)
On an adjusted basis, the company earned 25 cents a share, while analysts on average had expected a profit of 20 cents a share, according to IBES data, Refinitiv.
Total net revenue rose to $1.26 billion, from $882.1 million).
The company’s shares were up 4.35% to $64.01 in after-hours trading.
Report of the C Nivedita in Bengaluru; Editing by shailesh Kuber