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(Bloomberg) -- Square Inc. second-quarter sales jumped 64% on increased online business activity and a surge in the number of people using the company’s peer-to-peer payment app.
The San Francisco-based company said net revenue in the period ending June 30 was $1.92 billion, compared with $1.17 billion a year earlier. It lost 3 cents per share in the quarter.
Square released the results a day ahead of schedule after Bloomberg News reported the revenue surge earlier on Tuesday. The stock jumped about 11% in extended trading.
The pandemic, and the accompanying economic downturn, have hurt small businesses that rely on Square’s payments tools. However, millions of people have started using the company’s Cash App to send and receive money, and some some businesses have moved online to survive.
Gross payment volume, a metric that tracks how much Square processes in total transactions, improved each month in the quarter, “driven primarily by sellers resuming operations as COVID-19–related restrictions eased,” the company wrote in a release. While total GPV fell 15%, the amount generated by online transactions was up more than 50% from the same quarter a year ago.
The Cash App saw a spike in new users in April as people signed up to receive government aid. By June, the service had more than 30 million “monthly transacting active customers,” up from 24 million in December, Square said.
This part of the business generated $1.2 billion in second-quarter revenue, up 361% from a year earlier, the company reported.
(Updates with more details from results from fourth paragraph.)
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