Block Reports Third-Quarter Earnings

Block (NYSE:SQ) reported its third-quarter earnings, meeting expectations for adjusted earnings per share but falling short on revenue, leading to a 10% drop in shares during after-hours trading.

Key Figures

• Adjusted EPS: $0.88 (in line with expectations)
• Revenue: $5.98 billion (below the $6.24 billion consensus estimate)
• Gross Profit: $2.25 billion (up 19% YoY)
  • Cash App Gross Profit: $1.31 billion (up 21% YoY)
  • Square Gross Profit: $932 million (up 16% YoY)

CEO Statement

CEO Jack Dorsey noted, "We outperformed our gross profit and profitability guidance in the third quarter of 2024." He highlighted Cash App's strong performance fueled by increased inflows and a higher monetization rate.

Operating Income

• Operating Income: $323 million
• Adjusted Operating Income: $444 million
• Adjusted Operating Income Margin: 20%

Full-Year Guidance

Block maintained its gross profit guidance of at least $8.89 billion (18% YoY growth) and raised its full-year adjusted operating income outlook to at least $1.56 billion, reflecting an 18% margin.