Square managed to redeem its disappointing Q1 performance with healthier Q2 earnings. The first quarter saw the stock price plunging by 12 percent as investors showed concern with Square’s increasing expenditures. However, payment volumes were strong in Q2, and losses were reined in. Square has struggled in 2016 amid a rift with Starbucks and negative media attention on CEO Jack Dorsey.
But the company’s growing client base of more profitable and established firms imply a sustainable business model while Square Capital increases lending services to SMBs and plans an expansion into traditional loans. Square may face a challenge here because this space is partly spoken for by American Express and Chase, who are also dabbling in SMB online lending.
Here are some of Square’s key earnings numbers:
$12.5 billion | Payment volume, which was up 42 percent
$439 million | Revenue for Q2, compared to the analyst predictions of $406 million
$27 million | Net losses, much less than the $97 million seen one year ago in Q2 2015
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$125,000 | The amount of payment volume generated by Square’s large seller clients
123% | The year-on-year increase in Square’s lending business
