Square, Inc. (NYSE: SQ) reported its fourth quarter financial results on Thursday during extended trading hour and beat estimates. Despite the quarterly beat, Square reported a weaker-than-expected forecast, causing shares to tumble by 7%.
For the fourth quarter, Square reported earnings of USD 14 cents per share on adjusted revenue of USD 464 Million. Refinitiv analysts expected earnings of USD 13 cents on revenue of USD 454 Million.
Square continued to accelerate its growth, as its total net revenue increased by 36% year-over-year. Adjusted revenue grew by 47% year-over-year, compared to 33% and 45%, respectively, in the third quarter of 2017.
Subscription and services revenue was USD 194 Million, increasing 144% year-over-year. As for the full year, the segment reported revenue of USD 592 Million, increasing 134% year-over-year.
“Our 2017 results set the stage for strong momentum in 2018. Three focus areas will drive our strategy and investment this year: omnichannel commerce, financial services, and current international markets. These areas provide meaningful value to sellers and individuals and significantly increase the addressable market opportunity for Square.” said Square in its earnings release.
As for the first quarter, Square is projecting adjusted revenue between USD 290 Million and USD 295 Million and adjusted earnings per share of USD 3 cents to USD 5 cents. Analysts are expecting USD 11 cents per share.
Moving forward, Square said it plans to expand its outreach further to more consumers. The Company said it is planning on advancing itself whether its in person, messaging channels, websites, apps, and digital marketplaces.
In particular, Square said it plans to focus its international efforts this year. The regions Square is eyeing are Australia, Canada, Japan, and the UK to strengthen its onboarding and expand its overall product offering.