Payment company Square reported quarterly earnings and revenue that beat analysts' expectations on Wednesday but came up slightly short on forward guidance.
Here's how the company did compared with what Wall Street expected:Earnings: 13 cents per share vs. 11 cents per share forecast by Refinitiv. Revenue: $431 million vs. $413.9 million forecast by Refinitiv.
Adjusted revenue grew 68 percent year over year. The company reported its first quarterly profit of $20 million, compared with a net loss of $16 million in the third quarter of last year. Square's chief financial officer, Sarah Friar, said a "big driver" of the profitability was the investment in EventBrite, which went public in October.
Square met expectations for Wall Street's fourth-quarter revenue guidance, but came up short on earnings guidance for the upcoming quarter. It expects to earn between 12 and 13 cents, below Wall Street's expectations of 15 cents for the fourth quarter.
Shares of the fintech company fell more than 3.5 percent in after-hours trading Wednesday. The stock has popped more than 120 percent year over year, and is up 136 percent this year alone.
Subscription- and services-based revenue was especially strong, up 155 percent year over year to $166 million in the third quarter. Caviar, Square Capital and Cash Card, a Visa debit card generated by Square's peer-to-peer Cash App, were key drivers of Square's third-quarter revenue growth, the company said.