Shares of Square Inc. (NYSE:SQ) tumbled in the extended session on Wednesday after the San Francisco mobile-payments processor posted first-quarter earnings that disappointed Wall Street.
Square plunged nearly 6.7% to US$45.35 in extended trade on Wednesday.
For the quarter ended March 31, Square reported earnings of US$0.06 per share which matched on EPS and beat revenue estimates. But the company offered a forecast that fell short of analysts' estimates.
Square gave second-quarter revenue guidance in the range of US$355mln to US$360mln, above the US$334 mln Street estimate. But earnings will be between US$0.09 cents and US$0.11 cents per share, below analyst estimates of US$0.12.
Read: Square takes over Weebly in a US$365mn deal
Square, run by Twitter co-founder Jack Dorsey, launched bitcoin trading in late January for most users of its cash mobile payments app.
Shares of Square SQ fell in April after noted short-seller Andrew Left's Citron Research said excitement over the payments processor's “bitcoin trading product was overdone.”
Square announced an agreement on April 26 to buy website-building company Weebly for US$365mln to expand its reach. The cash-and-stock deal will allow small business customers to use both Weebly and Square to easily build websites and online stores, the companies said.
“Together with Weebly, we will provide sellers with one cohesive solution to start or grow an omnichannel business,” Square said in a statement.