Square, Inc. (SQ) saw its loss narrow to $15.09 million, or $0.04 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $96.76 million, or $0.29 a share. On an adjusted basis, net profit for the quarter stood at $20.09 million, or $0.05 a share compared with a net loss of $15.11 million, or $0.05 a share in the last year period.

Revenue during the quarter grew 21.70 percent to $461.55 million from $379.27 million in the previous year period. Gross margin for the quarter expanded 851 basis points over the previous year period to 37.58 percent. Operating margin for the quarter stood at negative 3.05 percent as compared to a negative 25.61 percent for the previous year period.

Operating loss for the quarter was $14.08 million, compared with an operating loss of $97.13 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $27.02 million compared with $9.08 million in the prior year period. At the same time, adjusted EBITDA margin improved 346 basis points in the quarter to 5.86 percent from 2.39 percent in the last year period.

For the second-quarter, Square forecasts revenue to be in the range of $532 million to $538 million. The company forecasts adjusted revenue to be in the range of $223 million to $226 million. The company expects diluted loss per share to be in the range of $0.09 to $0.07. On an adjusted basis, the company expects diluted earnings per share to be in the range of $0.03 to $0.05. 

For fiscal year 2017, Square forecasts revenue to be in the range of $2,120 million to $2,160 million. The company forecasts adjusted revenue to be in the range of $890 million to $910 million. The company expects diluted loss per share to be in the range of $0.24 to $0.20. The company expects diluted earnings per share to be in the range of $0.16 to $0.20 on adjusted basis.

Operating cash flow turns positive
Square has generated cash of $44 million from operating activities during the quarter as against cash outgo of $13.75 million in the last year period.

The company has spent $170.39 million cash to meet investing activities during the quarter as against cash outgo of $81.01 million in the last year period.

Cash flow from financing activities was $377.58 million for the quarter as against cash outgo of $4.85 million in the last year period.

Working capital increases sharply
Square has recorded an increase in the working capital over the last year. It stood at $788.46 million as at Mar. 31, 2017, up 191.89 percent or $518.34 million from $270.12 million on Mar. 31, 2016. Current ratio was at 2.42 as on Mar. 31, 2017, up from 1.60 on Mar. 31, 2016.

At the same time, days payable outstanding went down to 2 days for the quarter from 3 for the same period last year.