Mobile payments company Square beat Wall Street’s expectations to report a 41% year-on-year jump in revenue for the second quarter of 2016. The company’s made almost $439m over the three-month period, exceeding the $406m forecast.
The better-than-expected earnings call sent the company’s stock up 14% in after-hours trading.
Square is still unprofitable, but did narrow its losses in Q2 2016 to $27m, down about $2m from the same period last year.
The company’s payment volume increased 42% year on year to reach $12.5bn.
Importantly, Square reported that 42% of its sales now come from larger retailers, suggesting that the company is moving away from its reputation as a payments provider for small merchants or pop-up store that can not afford to invest in more complex payments systems.
“We are finally at a place where our tools scale to any size of seller. We are seeing more and more appetite from the larger sellers, said CEO Jack Dorsey, who is also the CEO of Twitter.
Square also reported growth in its loans business Square Capital, which increased by 123% year on year with $189m in loans made to businesses over the quarter.
This growth comes despite turmoil among other online lenders such as LendingClub and Prosper. Square’s CFO Sarah Friar attributed the growth to the company’s ability to leverage existing relationships with clients.
The company, which went public in November, expects to generate between USD1.63bn and $1.67bn for the whole of 2016.
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