Block lifts FY guidance as Q4 results top estimates

investing.com:

Investing.com — Block on Thursday lifted it full-year guidance after reporting better-than-expected fourth-quarter revenue as efforts to step up monetization on its Cash App payment app bolstered performance. 

Block Inc (NYSE:SQ) was up more than 11% in afterhours trading following the report.

For 2024, the company said it now expects adjusted operating income of at least $1.15B, for a 13% margin and adjusted earnings before interest, taxes, amortization, and depreciation, or EBITDA, of at least $2.63B, for a 30% margin, compared with a prior forecast for adjusted operating income of $875M and adjusted EBITDA of $2.4B. 

For the three months ended Dec. 31, Block reported adjusted EPS of $0.45 per share on revenue of $5.77 billion, compared with analysts estimates for adjusted EPS of $0.67 on revenue of $5.71B.

The beat on the top line was driven by performance of its Cash App, which generated $3.91B of revenue and $1.18B of gross profit, up 31% and 25% year over year, respectively. The monetization rate on the Cash App was 1.48%, up 9 basis points year over year and 5 basis points quarter over quarter.

For Q1, the company forecasts adjusted operating income of $225M to $245M and adjusted EBITDA, of $570M to $590M.