(Reuters) - Payments processor Square Inc (SQ.N) beat analysts’ estimates for quarterly profit on Wednesday, as it earned more from its subscription and services business.
The San Francisco-based company, best known for its signature small white credit card readers that are plugged into smartphones, has been aggressively expanding into a wider range of financial services, ranging from lending to accounting software.
Subscription and services-based revenue, which includes Square’s earnings from selling software, jumped 68% to $279.8 million in the third quarter ended Sept 30, while the transaction-based revenue rose nearly 25%.
Square has been attracting larger merchants through its newer products such as its food delivery business Caviar, lending services unit, Square Capital, and CashApp, which allows users to transfer money using a mobile application.
The company, founded and led by Twitter Inc (TWTR.N) Chief Executive Officer Jack Dorsey, said net income rose to $29.4 million, or 6 cents per share, in the quarter ended Sept. 30, from $19.6 million, or 4 cents per share, a year earlier. (bit.ly/2Nq3jAx)
On an adjusted basis, the company earned 25 cents per share, while analysts, on average, had expected a profit of 20 cents per share, according to IBES data from Refinitiv.
Total net revenue rose to $1.26 billion from $882.1 million.
Reporting by C Nivedita in Bengaluru; Editing by Shailesh Kuber
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