Payments company Square reported strong top-line growth for the third quarter, driven by gross payment volume gains among both larger and midmarket users.
Square’s total net revenue increased 33% year-over-year to $585 million while adjusted revenue rose 45% to $257 million. The company posted a loss of $16 million, or 4 cents a share, but adjusted earnings came in at 7 cents per share.
Analysts had been expecting adjusted earnings of 5 cents per share on adjusted revenue of $244.9 million.
The top-line growth “demonstrates that our core payments business remains strong and we continue to provide both small and large sellers with the tools they need to grow their business,” CEO Jack Dorsey said in an earnings call.
Gross payment volume, a key metric for the company, ticked up to $17.4 billion, an increase of 31 percent from the same period a year ago. Wall Street had forecast GPV of $17.03 billion.
GPV from larger sellers, defined as sellers that generate more than $125,000 in annualized GPV, increased 44% year over year and accounted for 48% of total GPV, up from 43% in the third quarter of 2016. GPV from midmarket sellers, or those that generate more than $500,000 in annualized GPV, grew 64% year over year, up from 61% in the second quarter.
As CNBC reports, “Square has beaten Wall Street estimates five quarters in a row and shares are up nearly 200 percent in the past 12 months.” The stock closed at an all-time high on Tuesday though it fell slightly on Wednesday, closing at $36.71.
Based on year-to-date performance, the company raised its full-year adjusted earnings outlook to a range of 24 to 25 cents per share, up from a previous range of 21 to 23 cents.
Square also expects full-year adjusted revenue in a range between $963 million to $966 million, up from $925 million to $935 million, and adjusted EBITDA in a range of $132 million to $135 million.