Block misses on earnings but beats on revenue, gross profit
PUBLISHED THU, FEB 23 20234:34 PM EST
UPDATED THU, FEB 23 20238:14 PM EST
MacKenzie Sigalos @KENZIESIGALOS
CNBC.com
KEY POINTS
-- Block stock rose in extended trading after the payments company reported fourth-quarter revenue and gross profit that beat Wall Street’s expectations.
-- The company posted a (non-adjusted) net loss of $114 million, or 19 cents per share, for the quarter.
Block stock rose nearly 8% in extended trading after the payments company reported fourth-quarter earnings that missed Wall Street expectations but posted strong growth in gross profit.
Here’s how Block did versus Refinitiv consensus expectations:
EPS: 22 cents, adjusted, versus expectations of 30 cents
Revenue: $4.65 billion versus expectations of $4.61 billion
Block posted $1.66 billion in gross profit, up 40% from a year ago. That beat Wall Street expectations of $1.53 billion.
Analysts tend to focus on gross profit as a more accurate measurement of the company’s core transactional businesses.
The company posted a (non-adjusted) net loss of $114 million, or 19 cents per share, for the quarter
Block, formerly known as Square, told CNBC in a call that the company ended the year with 51 million monthly transacting actives for Cash App in December, with two out of three transacting each week on average.
Its Cash App business reported $848 million in gross profit, a 64% year-over-year rise, according to Block. During December 2022, Cash App had 51 million monthly transacting actives, an increase of 16% year over year.
The company, which is run by CEO Jack Dorsey, said its Cash App Card generated more than $750 million in gross profits in 2022, up 56% from the year-earlier period.
Its point-of-sale business, Square, saw gross profit grow 22% on an annual basis to $801 million.
Prior to Thursday’s after-hours moves, the stock was up more than 15% in 2023.
Executives will discuss the results on a conference call starting at 5 p.m. ET.
Block (SQ) earnings Q4 2022 (cnbc.com) |
