Block the stock rose nearly 8% in extended trading after the payments company reported fourth-quarter earnings that missed Wall Street expectations but showed strong growth in gross profit.
Here’s how Block did compared to Refinitiv’s consensus expectations:
- EPS: 22 cents, adjusted, versus expectations of 30 cents
- Income: $4.65 billion compared to expectations of $4.61 billion
Block reported $1.66 billion in gross profit, up 40% from a year ago. That beat Wall Street expectations of $1.53 billion.
Analysts tend to focus on gross profit as a more accurate measure of the company’s core operations.
The company posted an (unadjusted) net loss of $114 million, or 19 cents per share, for the quarter
Twitter CEO Jack Dorsey addresses students during a town hall at the Indian Institute of Technology (IIT) in New Delhi, India, on November 12, 2018.
Anushree Fadnavis | Reuters
Block, formerly known as Square, told CNBC in a call that the company ended the year with 51 million monthly active transactions for the Cash App in December, averaging two out of three transactions each week.
Its Cash App business reported $848 million in gross profit, up 64% year over year, according to Block. As of December 2022, Cash App had 51 million monthly active transactions, up 16% year-over-year.
The company, run by CEO Jack Dorsey, said its Cash App Card generated more than $750 million in gross profit in 2022, up 56% from the same period last year.
Its outlet, Square, saw gross profit rise 22% year over year to $801 million.
Before Thursday’s after-hours moves, the stock was up more than 15% in 2023.
Executives will discuss the results on a conference call beginning at 5 p.m. ET.