Square loses 20 cents per share, reports $374M in revenue

Jack Dorsey: A lot that's working for us

Square reported a quarterly loss Wednesday, but beat Wall Street's sales expectations as payment volume growth boosted revenue.

The payments processing company, in its first quarterly results since going public, reported an adjusted fourth-quarter loss of 20 cents per share on $374 million in revenue. Total net sales rose 49 percent from the previous year.

"There's a lot that's working," CEO Jack Dorsey told CNBC's "Closing Bell" on Wednesday. "Our main focus is around making sure that our sellers can accept any form of payment, including people's phones."

Analysts expected Square to post a loss of 13 cents per share on $343 million in revenue, according to a consensus estimate from Thomson Reuters.

Square payment system
Source: Square

Square said gross payment volume climbed to $10.2 billion, up 47 percent from the previous year.

Its shares rose slightly in choppy after-hours trading.

Square said it expects adjusted revenue of $132 million to $137 million for the first quarter, versus adjusted sales of $135 million in the fourth quarter. For the fourth quarter, that metric rose 64 percent from the previous year.

It also said it expects $6 million to $12 million in adjusted 2016 earnings before interest, taxes, depreciation and amortization.

Jack Dorsey (L), CEO of Square and CEO of Twitter, live casts video while standing outside the New York Stock Exchange for the IPO of Square, in New York November 19, 2015.
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The young mobile payments company went public as volatility hit many growth stocks through the end of 2015 and into this year. Square shares have fallen about 8 percent this year.

Dorsey also heads social media company Twitter.

He highlighted prospects for the Square's contactless and chip reader, which allows merchants to accept chip cards as well as Apple and Android payment systems. "That means that sellers can see more customers, but customers can have a much faster and better experience as well," Dorsey said.

Square said it received more than 350,000 preorders for the devices by the end of the fourth quarter.