August 1, 2018 / 8:56 PM / 10 months ago

CORRECTED-UPDATE 1-Payment processor Square's profit beats as transaction volume surges

(Corrects to say shares fell, not “rose”, in the last paragraph)

Aug 1 (Reuters) - Payments processor Square Inc on Wednesday topped Wall Street estimates for quarterly profit, helped by higher revenue from transactions, subscription products and services.

Square, whose flagship technology is a credit card reader that turns smartphones into payment terminals, has been seeking to diversify its revenue stream by providing more services such as loans, payment cards and accounting software.

Transaction-based revenue rose nearly 30 percent to $625.2 million, with gross payment volume, the total dollar amount of all payments processed by sellers, rising 30 percent to $21.4 billion.

Subscription and services-based revenue, which includes Square’s earnings from selling software, more than doubled to $134.33 million in the quarter.

The company’s net loss narrowed to $5.91 million, or 1 cent per share, for the second quarter ended June 30 from $15.96 million, or 4 cents per share, a year ago.

On an adjusted basis, Square earned 13 cents per share, beating the average analyst estimate of 11 cents, according to Thomson Reuters I/B/E/S.

Square, which is led by Twitter Inc Chief Executive Jack Dorsey, now expects full-year net loss per share to be in the range of 17 cents to 21 cents, smaller than the prior forecast of 24 cents to 28 cents.

Total revenue rose to $815 million from $552 million.

Shares of the company fell 0.5 percent to $66.51 in after-hours trading.

Reporting by Diptendu Lahiri in Bengaluru; Editing by Arun Koyyur

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