Jack Dorsey-led fintech firm Square (NYSE: SQ) reported second-quarter revenues of $1.17 billion, up 44% year-over-year. On an adjusted basis, revenues grew 46% to $563 million even as analysts were expecting just $557.07 million.
Gross payment volume (GPV) improved 25% to $26.8 billion. In the second quarter, GPV from larger sellers grew 34% year over year and accounted for 54% of total GPV.
In Q2, transaction-based revenue grew 24%, Hardware revenue improved 21% and Subscription and services-based revenues were up 87%.
Second-quarter adjusted net income came in at 21 cents per share, five cents higher than the Wall Street projection.
Square shares plunged 7.4% during after-market trading on weaker-than-expected guidance. The stock has gained 41% in the year-to-date period and 20% in the trailing 12 months.
For the third quarter, Square expects adjusted earnings of 18-20 cents per share on revenues of $1.13 billion – $1.15 billion. For the full year, revenues are expected in the range of $4.41 billion to $4.47 billion, while adjusted income is anticipated between 74 cents and 78 cents per share.
In a separate release, the company said last-mile logistics platform DoorDash will acquire its catering business Caviar for $410 million in cash and DoorDash preferred stock. The transaction is expected to close in 2019.
The transaction builds on the partnership between DoorDash and Square. DoorDash is currently integrated with Square for Restaurants point of sale, which streamlines the acceptance of online and in-person orders for merchants.