Block reported a revenue of $5.62 billion for 3Q, exceeding expectations for the top- and bottom-line as a result of strong Cash App and Square performance.: Square reports strong earnings as Cash App and bitcoin sales jump
Shares of Block, a fintech firm, experienced a 19% jump in after-hours trading on Thursday following the release of their third-quarter earnings report which surpassed analyst estimates in both revenue and earnings. Block's revenue of $5.62 billion beat the $5.44 billion forecasted by an analyst consensus from LSEG. Furthermore, Block's 55 cents, adjusted earnings per share triumphed over the 47 cents expected. The company also raised their guidance for adjusted EBITDA, projecting it to range from $1.66 billion to $1.68 billion, while analysts had anticipated it to come in at $1.5 billion. Additionally, Block forecasted their gross profit to be between $7.44 billion and $7.46 billion for the 2023 fiscal year. Furthermore, they anticipate a notable increase in Adjusted Operating Income margin for 2024 compared to the prior year. On a conference call with analysts, Jack Dorsey, co-founder of Block, specified that he intends "to lead Square until we hit milestones," which include a "significant return to growth" and increased innovation and invention across their ecosystems. Revenue from Cash App and Square grew by 34% and 12%, respectively. Dorsey addressed shareholders in a letter, expressing gratitude and mentioning that the company had been focused on their go-to-market strategy.
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