Technology

Block shares plunge 11% on revenue miss

Dado Ruvic | Reuters

Block shares tumbled 11% in extended trading on Thursday after the company reported third-quarter revenue that trailed Wall Street expectations.

Here is how the company did, compared to analysts’ consensus estimates from LSEG.

  • Earnings per share: 88 cents adjusted vs. 87 cents expected
  • Revenue: $5.98 billion vs. $6.24 billion expected

Block, formerly known as Square, posted $2.25 billion in gross profit, up 19% from a year ago. Analysts tend to focus on gross profit as a more accurate measurement of the company’s core transactional businesses.

The company reported net income of $283.7 million, or 45 cents per share, after losing $88.7 million, or 15 cents a share, a year earlier.

The Cash App business, the company’s popular mobile payment platform and a significant contributor to overall profitability, reported $1.31 billion in gross profit, a 21% year-over-year jump. Block, run by Twitter co-founder Jack Dorsey, said its Cash App Card monthly active users increased 11% year over year to more than 24 million.

The company said gross profit for the fourth quarter will increase 14% to $2.31 billion.

Block’s third-quarter earnings call starts at 5 P.M. Eastern time.

Articles You May Like

Here’s what Trump promised the crypto industry ahead of the election
No job for Tom Tugendhat as Kemi Badenoch announces full shadow cabinet
India’s Gaganyaan Mission Postponed to 2026 as ISRO Focuses on Safety, Testing, and Astronaut Training
Palantir shares surge on rosy revenue outlook
Adyen shares slide 10% as payments giant’s transaction volume growth slows