Square Falls Following Q3 Earnings

Square Inc SQ shares are down 2.5 percent after turning in third-quarter earnings.

The payment processing company delivered a third-quarter adjusted earnings gain of 7 cents per share, beating estimates by 2 cents per share. The GAAP figure came in at a loss of 4 cents per share. Revenues grew 33 percent year-over-year, coming in at $585 million.

Q3 Highlights

• Virtual Terminal is the company’s fastest product to reach $1 billion
• Gross payment volume of $17.4 billion, up 31 percent year over year

“In the third quarter, we saw ongoing strength in both transaction-based and subscription and services-based revenue,” said CEO Jack Dorsey. “We launched Square Register, our first all-in-one hardware offering, and we brought Square Stand to Australia and our contactless and chip reader to Canada. Our open platform strategy is working: Sellers using business systems that are integrated with Square contributed nearly 20% of third-quarter GPV,” said Dorsey in the company's shareholder letter.

The stock traded recently at $35.80, down 2.48 percent.