Block shares surge after earnings beat and increased full-year guidance
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Shares of fintech firm Block surged as much as 19% in after-hours trading Thursday, after the company reported third-quarter earnings that beat analyst estimates on the top and bottom line and showed strong growth in both Cash App and Square revenue.
Here's how the company did, compared to an analyst consensus from LSEG, formerly Refinitiv:
The company also hiked its guidance.
The company had previously guided to $1.5 billion in full-year adjusted EBITDA but now expects adjusted EBITDA to come in between $1.66 billion and $1.68 billion.
The company is guiding to adjusted full-year operating income of $205 million to $225 million, a sharp increase from prior guidance of $25 million. Analysts surveyed by LSEG had expected full-year revenue guidance to come in at $21.54 billion. The company didn't provide full-year revenue guidance but did guide to $875 million in adjusted operating income for 2024.
Additionally, Block now expects 2023 gross profit ranging from $7.44 billion to $7.46 billion.
«In 2024 we expect a significant improvement in Adjusted Operating Income margin on a year-over-year basis in 2024 compared to 2023. Our outlook does not assume any additional macroeconomic deterioration, which could impact our results,» the company said in its shareholder letter.
During Q3, net revenue grew 24% year-over-year, from $4.52 billion to $5.62 billion. Bitcoin revenue climbed from $1.76 billion to $2.42 billion year-over-year. Gross profit climbed 21% compared to the year-ago period, from $1.57 billion to $1.90 billion.
Adjusted EBITDA came in at $477 million, compared to $327 million in the year-ago period. There was particularly strong growth in Block's payment platform, Cash App, and its point-of-sale
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