Revenue during the quarter surged 32.15 percent to $439 million from $332.19 million in the previous year period. Gross margin for the quarter expanded 525 basis points over the previous year period to 34.24 percent. Operating margin for the quarter stood at negative 7.29 percent as compared to a negative 15.72 percent for the previous year period.

Operating loss for the quarter was $31.98 million, compared with an operating loss of $52.22 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $11.62 million compared to negative $15.78 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 2.65 percent for the quarter compared to negative 4.75 percent in the last year period.

For fiscal year 2016, Square, Inc. forecasts revenue to be in the range of $1,695 million to $1,700 million. The company forecasts adjusted revenue to be in the range of $677 million to $680 million.

For the fourth-quarter 2016, Square, Inc. forecasts revenue to be in the range of $438 million to $443 million. The company forecasts adjusted revenue to be in the range of $182 million to $185 million.

Operating cash flow improves significantly
Square, Inc. has generated cash of $42.24 million from operating activities during the nine month period, up 1,249.36 percent or $39.10 million, when compared with the last year period.

The company has spent $120.42 million cash to meet investing activities during the nine month period as against cash outgo of $35.59 million in the last year period.

Cash flow from financing activities was $42.77 million for the nine month period as against cash outgo of $17.79 million in the last year period.

Cash and cash equivalents stood at $437.90 million as on Sep. 30, 2016, up 151.55 percent or $263.82 million from $174.08 million on Sep. 30, 2015.