Square Fall on Disappointing Earnings Forecast

Square, Inc. (NYSE: SQ) fell after the company provided second quarter earnings forecast that fell short of analysts’ estimates.

The company said total net revenue rose 45 percent to $669 million in the first quarter of 2018. Adjusted revenue was $307 million, beating analysts’ estimate of $293 million, according to Thomson Reuters.

First quarter net loss was $24 million, compared to a net loss of $15 million a year earlier. Adjusted EPS was $0.06 per share, in line with analysts’ estimates.

According to Square’s Q1 2018 Shareholder Letter: “We will continue to provide an open platform to offer sellers the flexibility to select and integrate the third-party solutions that are best for their business. In the first quarter, the number of sellers that are integrated with a third-party solution increased nearly 80% year over year. Today, we offer more than 100 third-party partner integrations across a diverse range of third-party apps: website builders such as GoDaddy, Wix, and WooCommerce; points of sale such as SuiteRetail and Vend; and backoffice systems like SAP Business One, Intuit, and Xero.”

Gross payment volume (GPV) increased 31 percent to $17.8 billion as the company continue to see strength from larger sellers.

Square forecast second-quarter revenue guidance in the range of $355 million to $360 million. Earnings will be between 9 cents and 11 cents per share, below analyst estimates of 12 cents.

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