Block shares surged up to 14% in extended trading Thursday after the payments company disclosed fourth-quarter earnings that exceeded analyst expectations for gross profit and demonstrated significant increase in Square and Cash App revenue.
Here’s how the company performed when compared to an analyst consensus from LSEG, formerly Refinitiv:
Earnings per share were 45 cents, adjusted. Not similar to estimations.
Revenue: $5.77 billion, compared to $5.70 billion predicted
Block reported a gross profit of $2.03 billion, up 22% from the previous year. Analysts view gross profit as a more accurate indication of the company’s primary transactional businesses.
The company increased its adjusted EBITDA projection to at least $2.63 billion from $2.40 billion.
Block, formerly known as Square, reported 56 million monthly transacting actives for Cash App in December, with the majority of those users using it for peer-to-peer payments or the Cash App Card.
Its Cash App division posted a gross profit of $1.18 billion, up 25% year on year.
The business, led by Jack Dorsey, said its Cash App Card had 23 million monthly actives in December, a 20% increase. That is more than twice the growth.
“We believe this strategy will enable us to build the largest network in the long run, with a highly engaged customer base using Cash App as their primary banking solution.”
The payments firm has focused on slimming down operations in recent months. In January, the Block CEO reportedly said in a note to staffers that the company had laid off a “large number” of workers. This followed another round of layoffs in December.”
Jack Dorsey said in a note to shareholders
