Square’s stock drops 7% after reporting ‘significant slowdown’ due to COVID-19

The payments company Square, Jack Dorsey’s other gig, reported a net loss of $106 million and adjusted losses of 2 cents per share for its first fiscal quarter of 2020. Analysts anticipated Square would report adjusted earnings of about 13 cents per share, per estimates published by MarketWatch and Yahoo News. The results give us our first up-close look at how the coronavirus pandemic has hit Square’s bottom line.

Overall, Square’s results were mixed: Its revenue rose to $1.38 billion in the quarter—exceeding both analysts’ estimates (around $1.30 billion) as well as the higher-end of Square’s original guidance for investors ($1.36 billion).

Square noted in its report that its “seller ecosystem experienced a significant slowdown due to the impacts of COVID-19” in the final two weeks of the first fiscal quarter.

Here are the key numbers for Square’s Q1 2020:

Revenue: $1.38 billion (analysts expected $1.30 billion)
Adjusted losses: 2 cents per share (analysts expected earnings of 13 cents per share)
Net loss: $106 million (Square lost $38 million in Q1 2019)

Square’s stock price, which was on the rise in April, dropped by more than 7% initially in after-hours trading.