Jack Dorsey Portrait Shoot
Jack Dorsey, co-founder and CEO of Twitter. Photograph by Paul Jeffers—Fairfax Media via Getty Images

Shares in Payments Company Square Rise 5% on Smaller-Than-Expected Loss

Updated: May 09, 2017 4:03 PM ET | Originally published: May 03, 2017

Square, the payments company co-founded by Twitter CEO Jack Dorsey, reported a smaller-than-expected quarterly loss on Wednesday, as customers processed more transactions through its network and costs fell.

The company's gross payment volume - the total dollar amount of all card payments processed by sellers - jumped 33% to $13.65 billion.

The San Francisco-based company's shares (sq) were up 5% at $19.14 in after-hours trading.

Square facilitates payments between businesses and customers by using a credit card reader that turns any cellphone into a payment terminal.

The company, which started as a pure payment processor, is also expanding into new areas, offering a host of services that include lending unit Square Capital, food ordering service Caviar and peer-to-peer payment service Square Cash.

Square also made its foray in the UK by launching its services in March. Outside the United States, it operates in Canada, Japan and Australia.

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Square also raised its 2017 total revenue forecast to $2.12 billion-$2.16 billion from $2.09 billion-$2.15 billion.

The company said net loss narrowed to $15.1 million, or 4 cents per share, in the first quarter ended March 31, from $96.8 million, or 29 cents per share, a year earlier.

Analysts, on an average, expected a loss of 8 cents per share, according to Thomson Reuters I/B/E/S.

Operating expenses fell about 10% to $187.51 million.

Net revenue jumped 21.7% to $461.55 million, beating estimates of $450.7 million.

Shares of Square, which went public in November 2015, had risen 34% this year through Wednesday's close.

Correction, May 9, 2017: An earlier version of this article provided an incorrect adjusted loss for Square. That reference has been removed.

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