By Kimberly Chin
Square Inc. shares rose more than 10% after hours to $151.80 after the company said usage of its Cash App and Cash Card increased as consumer spending picked up following the easing of coronavirus-lockdown measures.
Shares of the mobile-payments company closed at an all-time high of $136.83 on Tuesday after it said second-quarter sales jumped 64% to $1.92 billion from a year ago.
Gross profit from Square's Cash App nearly tripled as more customers increased spending using the ecosystem to make transactions.
In June, the San Francisco, Calif.-based company had 30 million monthly transacting active customers on Cash App and more than 7 million active customers using its Cash Card for spending, it said.
Square said customers are increasingly adopting other products after their first month of activating Cash App, including the Cash Card, direct deposit and bitcoin investing.
"We remain focused on helping Cash App customers access our broader ecosystem of financial tools, including Cash Card," the company said in a letter to investors.
Shares of Square have more than doubled this year as consumers and sellers adapt to digital and contactless commerce during the coronavirus pandemic.
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