Shares of Square (NYSE: SQ) leaped nearly 10% on Thursday, following the financial services company's first-quarter earnings release.
Square's revenue surged 44% year over year to $1.38 billion, besting Wall Street's estimates for $1.3 billion. The gains were fueled in part by a 197% surge in Cash App revenue to $528 million. But Square posted a net loss of $106 million, as it ramped up its reserves for transaction and loan losses due to the coronavirus pandemic.
"We recognize that the macroeconomic environment is having a significant impact on people around the world, including many of our customers," CEO Jack Dorsey and CFO Amrita Ahuja wrote in a shareholder letter. "This may cause a variety of outcomes for our financial results in upcoming quarters, depending on the length and severity of the impact from COVID-19, and we expect a material impact to our second-quarter results."
Source Fool.com