Square Stock Crashes Despite Revenue Beat; Reminds Shareholders Of Large Lockup Expiration Looming

Square Inc SQ shares are down on Thursday after it reported a loss of $(0.29) per share and sales of $379 million. Revenue figures were above estimates, while GAAP EPS numbers couldn't be compared to analyst estimates of EPS, which called for a loss of $(0.09).

First quarter Square gross payment volume rose 45 percent year-over-year, while net revenues were up 51 percent YoY. Transaction profits came in at 1.03 percent, versus 1.11 percent a year ago.

The company, in its shareholder letter, reminded investors that its 180-day lockup period expires on May 16, adding that 64 million stock options and warrants covered by the lockup will be exercisable at this date.

Square has 335 million common shares outstanding.

The stock presently rests near $11.35 per share, down 13 percent since the day's close. History shows lockup expirations are a toss-up for share price, so keep an eye on the insider filings after May 16 to monitor transaction pressures.