Square Inc. shares hit record after results beat expectations
Square Inc. shares hit record highs last week after the company registered significant client sign ups and continued its impressive rollout of new products
The company’s revenue in the first quarter of 2017 rose 39 percent as more businesses signed on to use the company’s growing suite of profitable services, including loans and software that manages inventory and analyzes sales.
Shortly after Square Inc. raised its full-year sales and profit forecasts, the company’s shares hit record highs. The stock jumped 12 percent at its peak to $20.42, a price more than double the record low experienced in June last year.
Square’s Chief Financial Officer, Sarah Friar, commented on the latest results to Bloomberg, stating, “What continues to make me pleased with our results is growth in large businesses.”
“That ongoing shift is good to see because I think those folks are not net new to the payments world, they’ve probably had an alternate supplier, but now they want to be on the latest technology, and they value all we do,” she continued.
Square, Inc. has become a leader in the payments space with around 2 million business users. The company’s point-of-sale service offers tools for every part of running a business, from accepting credit cards and tracking inventory to real-time analytics and invoicing. Square also provides sellers small business financing and customer engagement tools. Last week, the company started inviting some of its users to use its new prepaid card which is linked to the Square Cash app.
Square was founded in 2009 and is headquartered in San Francisco, with offices in the United States, Canada, Japan, Australia, and Ireland. In March, the company launched its services in the U.K, marking the fifth country where Square is available. Square is targeting an estimated 5.4 million small businesses that still aren’t accepting card payments in the UK.