Block (NYSE:SQ) reported third-quarter earnings that met expectations, but revenue fell short of analyst expectations, sending shares down 10% in after-hours trading.
The financial technology company formerly known as Square reported adjusted earnings per share of $0.88, in line with analyst expectations. However, revenue for the quarter came in at $5.98 billion, missing the consensus estimate of $6.24 billion.
Despite the revenue shortfall, Block saw strong growth in its key business segments. Gross profit grew 19% year over year to $2.25 billion, with Cash App generating $1.31 billion in gross profit, up 21% year over year, and Square contributing $932 million, up 16% year over year.
“We outperformed our gross profit and profitability expectations in the third quarter of 2024,” said CEO Jack Dorsey. “Cash App continued its strong performance, primarily driven by growth in inflows per active person and an increase in monetization.”
Block reported operating income of $323 million and adjusted operating income of $444 million for the quarter. The company’s adjusted operating profit margin increased to 20%, reflecting strong growth and disciplined cost management.
For the full year, Block maintained its gross profit guidance of at least $8.89 billion, representing 18% year-over-year growth. The company raised its full-year outlook for adjusted operating income to at least $1.56 billion, or an 18% margin.
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