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Square Rings Up Mixed Bag of Earnings

Twitter Co-Founder Jack DorseyTwitter Co-Founder Jack Dorsey
Square, a credit card reader made for smartphones, is plugged into an iPhone Photograph by Jin Lee — Bloomberg via Getty Images

Square, the mobile payments company run by Twitter chief executive Jack Dorsey, reported a better-than-expected 51.4% jump in quarterly revenue as customers processed more transactions through its network.

Square, which went public in November, facilitates payments between businesses and customers with a credit card reader that turns any mobile phone into a payment terminal. The company also makes point-of-sale registers and chip-enabled card readers.

The company’s net revenue rose to $379.3 million in the first quarter ended March 31, from $250.6 million a year earlier and $374.4 million in the fourth quarter of 2015.

However, its net loss attributable to common stockholders widened to $96.8 million from $48 million in the same quarter a year ago. On a per share basis, Square lost 29 cents.

Dorsey co-founded both Square and Twitter, but investors have been showing greater confidence in his ability to build Square into a strong business than in his chances of turning around Twitter.

Square’s shares have risen nearly 50% since the company went public on Nov. 19, while Twitter has lost nearly half of its value in the same period as the microblogging company struggles to attract users and advertisers.

Dorsey splits his time between the two companies, which are both based in the same area of San Francisco.

Square said its gross payment volume (GPS)—the total dollar amount of all card payments processed by sellers—jumped 45% to $10.3 billion in the quarter.

Total transaction revenue—the income the company earns from businesses process sing payments through Square’s devices – increased 42.3% to $300.5 million.

Excluding one-time items, Square lost 14 cents per share. Analysts on average had expected a loss of nine cents per share and revenue of $343.6 million, according to Thomson Reuters.

Square’s shares were up marginally at $13.10 in after-hours trading on Thursday.