Square's strong guidance tops targets and sends its stock up 11%

Square's stock popped 11% in after hours trading on Wednesday after the mobile payments company delivered a revenue forecast that beat Wall Street targets.

The company said it expects revenue in the current quarter to range between $167 million and $171 million, compared to the $166.3 million expected by analysts polled by Bloomberg.

Square, co-founded and run by Twitter Inc Chief Executive Jack Dorsey, reported a 41.5 percent jump in quarterly revenue as more transactions were processed through the company's network.

The company's net revenue rose to $438.5 million in the second quarter ended June 30, from $310.0 million a year earlier.

The net loss narrowed to $27.3 million from $29.6 million.

On a per share basis, Square lost 8 cents.

Square, which went public in November, facilitates payments between businesses and customers with a credit card reader that turns any mobile phone into a payment terminal. The company also makes point-of-sale registers and chip-enabled card readers.