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Dorsey-Led Square’s Sales Jump in First Earnings Since IPO

Twitter Co-Founder Jack DorseyTwitter Co-Founder Jack Dorsey
Square co-founder and CEO Jack Dorsey.Photograph by Jin Lee — Bloomberg via Getty Images

(Reuters) – Mobile payments company Square’s revenue beat analysts’ estimates in its first quarterly results since going public in November, easing pressure on CEO Jack Dorsey who is also leading turnaround efforts at Twitter Inc.

The company’s shares (SQ) were up 3.7% in extended trading on Wednesday.

Square, founded in 2009, has built buzz and a substantial customer base with a credit card reader that turns a mobile device into a payment terminal.

The company also makes point-of-sale registers and chip-enabled card readers.

Total net revenue rose 49.2 percent to $374.4 million in the fourth quarter ended Dec. 31, beating analysts’ average estimate of $343.2 million, according to Thomson Reuters I/B/E/S.

Total net revenue and analysts’ estimates include transaction costs and revenue from Starbucks Corp, with which it has a payment processing agreement.

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The company said it does not intend to renew the deal when it expires in the third quarter.

On an adjusted basis, the company reported revenue of $135 million.

However, the net loss attributable to common stockholders widened to $80.5 million, or 34 cents per share, from $37.1 million, or 25 cents per share.