Square Inc. is seeking balance as it transitions to a more holistic provider of services including small-business payments and financing, but its lackluster first-quarter earnings suggest the company's strategy is still wobbly.

Square's sales rose 51% to $379.3 million during the period ended March 31, but the company recorded a net loss of $96.8 million for the quarter, disappointing investors, who sent shares down by as much as 20 percent on Friday, the day after it released earnings.

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