Payment company Square reported quarterly earnings and revenue that beat analysts’ expectations on Wednesday but came up slightly short on forward guidance.
announced Friar was stepping down to become CEO of start-up Nextdoor. Shares of Square dropped as much as 8 percent after the announcement.
Square CEO Jack Dorsey, who also runs Twitter, said on the call with analysts that Square had not yet hired a new CFO yet but was “working with urgency” to do so. Dorsey called finding Friar’s replacement was “number one focus for the company.”
San Francisco-based Square is well-known in the payments sector for its credit card processor, payment hardware and popular Cash app. But Friar recently hinted at more moves into traditional banks’ turf, saying that “anything you do today with a bank account, you should look to the Cash App to begin to emulate more and more of.”
Square has expanded its small-business lending — an increasingly competitive area in fintech — through Square Capital. In the third quarter of 2018, Square Capital facilitated more than 62,000 business loans, up 34 percent year over year.
Square launched bitcoin trading through its popular Cash App in January and generated $ 43 million in revenue from the cryptocurrency in the third quarter.