Block shares surged 6% in after-hours trading on Thursday as the fintech company revised its annual profit forecast upwards.
Performance Overview
Block reported earnings per share of 62 cents, falling short of the 69 cents expected by analysts. Revenue reached $6.05 billion, below the anticipated $6.31 billion. Despite a 2% drop from last year’s $6.16 billion, gross profit increased by 14% to $2.54 billion, surpassing the $2.46 billion forecast. Square’s gross payment volume rose by 10% to $64.25 billion, while Cash App reported $2.37 billion in GPV.
Revised Financial Outlook
The company updated its full-year gross profit guidance to $10.17 billion, indicating a 14% increase from the previous year. Earlier, Block had projected a gross profit of $9.96 billion for the year. The expected full-year adjusted operating income stands at $2.03 billion, reflecting a 20% margin. For the third quarter, Block anticipates a 16% growth in gross profit to $2.6 billion, with an operating margin of 18%.
