May 2, 2018 / 8:36 PM / 5 months ago

UPDATE 1-Dorsey-led Square's quarterly loss widens as expenses soar

(Adds details on Q1 earnings; background)

May 2 (Reuters) - Square Inc reported a bigger quarterly loss on Wednesday as the payments processor’s total expenses surged about 47 percent on higher spending on product development and marketing.

The company’s shares fell 4.6 percent to $46 in after-hours trading.

Total expenses jumped to $276.2 million, while interest and other costs rose more than five times to $2.8 million.

Square, led by Twitter Inc Chief Executive Officer Jack Dorsey, has been seeking to diversify its revenue stream by attracting larger merchants and providing more diverse services to its clients including loans, payment cards and accounting software.

Gross payment volume, the total dollar amount of all payments processed by sellers, rose 31 percent to $17.8 billion in the first quarter ended March 31.

Net loss widened to $24 million, or 6 cents per share, in the quarter, from $15.1 million, or 4 cents per share, a year earlier. (bit.ly/2KxSUPJ)

On an adjusted basis, Square earned 6 cents per share, in line with analysts’ expectations, according to Thomson Reuters I/B/E/S.

Total revenue rose to $668.6 million from $461.6 million.

Reporting by Diptendu Lahiri in Bengaluru; Editing by Sriraj Kalluvila

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