Square leaps after reporting better-than-expected results

• Square reported results that bested Street expectations
• The stock leaped as much as 10 percent in after-hours trade
• The company reported better-than-expected revenue from transactions as well as its subscription and services segment

Square shares surged in extended trading after the company reported first-quarter results that bested analyst expectations.

Here's how the company did compared with what Wall Street was expecting:

• Loss per share: 4 cents vs. 8 cents expected, according to Thomson Reuters consensus
• Revenue: $461.6 million vs. $450.7 million expected, according to Thomson Reuters consensus
• Gross payment volume: $13.64 billion, in line with StreetAccount consensus

The gross payment volume figure represents a 33 percent year-over-year increase.

The stock briefly gained more than 10 percent in choppy after-hours trading. The shares later pared their gains and were last seen trading about 5 percent higher as more than 2.3 million shares changed hands.

In the year-ago quarter, Square reported a loss of 29 cents per share on $379.3 million in revenue.

In light of its strong first-quarter results, Square raised its full-year guidance:

• Adjusted earnings per share: 16 cents to 20 cents, vs. previous outlook of 15 cents to 19 cents
• Adjusted revenue for 2017: $890 million to $910 million, vs. previous outlook of $880 million to $900 million

The payment processing company also reported better-than-expected revenue from transactions as well as its subscription and services segment:

• Transaction-based revenue: $403.5 million vs. $399.9 million expected, according to StreetAccount consensus
• Subscription and services-based revenue: $49.1 million vs. $41.3 million expected, according to StreetAccount consensus
• Hardware revenue: $9 million vs. $10 million expected, according to StreetAccount consensus

Square's subscription and services-based revenue grew 106 percent, compared with the year-ago quarter.

In March, Square launched in the U.K., hoping to capitalize on a market where 70 percent of shoppers prefer to pay with a card. Despite the clear payment preference, Square estimated that more than half of small businesses in the country did not accept card payments.

In late April, Square acquired Yik Yak employees as the social network winds down its app.

The stock has surged more than 34 percent in the past year, hitting an all-time intraday high of $19.03 a share on Tuesday.