Square Inc. (NYSE: SQ) on Tuesday reported fourth quarter sales and earnings that beat analysts’ estimates due to increasing use of their devices for transaction by larger merchants.
Adjusted revenue rose 47 percent to $283 million in the fourth quarter, beating analyst’s estimates of $266.6 million. Gross payment volume jumped 31 percent to $17.8 billion as the company continue to see strength in larger sellers.
Excluding some items, The San Francisco-based company said it earn 8 cents per share, also topping analysts’ estimates of a profit of 7 cents per shares, according to Thomson Reuters.
“We continue to create meaningful vectors of growth: In the fourth quarter of 2017, revenue from products launched since 2014 was 22% of total net revenue and 36% of Adjusted Revenue, up from 14% and 25%, respectively, in the prior year period.” The company said in a statement.
Square share rose 0.9 percent to $46.33 in the early trading on Wednesday. The stock was up over 33 percent this year.
The company also provided guidance for the first quarter 2018 and the full year. Square now expected total net revenue of $605 million to $620 million in the first quarter. Excluding some items, the company expected earnings will be 42 cents to 47 cents a share for the full year.