Block stock rose nearly 8% in prolonged trading after the payments company reported fourth-quarter earnings that missed Wall Street expectations but posted strong growth in gross profit.
Here’s how Block did versus Refinitiv consensus expectations:
- EPS: 22 cents, adjusted, versus expectations of 30 cents
- Revenue: $4.65 billion versus expectations of $4.61 billion
Block posted $1.66 billion in gross profit, up 40% from a 12 months ago. That beat Wall Street expectations of $1.53 billion.
Analysts are likely to concentrate on gross profit as a more accurate measurement of the corporate’s core transactional businesses.
The corporate posted a net lack of $114 million, or 19 cents per share, for the quarter
Twitter CEO Jack Dorsey addresses students during a town hall on the Indian Institute of Technology (IIT) in Latest Delhi, India, November 12, 2018.
Anushree Fadnavis | Reuters
Block, formerly often called Square, told CNBC in a call that the corporate ended the 12 months with 51 million monthly transacting actives for Money App in December, with two out of three transacting each week on average.
Its Money App business reported $848 million in gross profit, a 64% year-over-year rise, in accordance with Block. During December 2022, Money App had 51 million monthly transacting actives, a rise of 16% 12 months over 12 months.
The corporate, which is run by CEO Jack Dorsey, said its Money App Card generated greater than $750 million in gross profits in 2022, up 56% from the year-earlier period.
Its point-of-sale business, Square, saw gross profit grow 22% on an annual basis to $801 million.
Prior to Thursday’s after-hours moves, the stock was up greater than 15% in 2023.
Executives will discuss the outcomes on a conference call starting at 5 p.m. ET.