Block announced a surpassing of expectations both in terms of their revenue and earnings, driven primarily by the revenue increase from Cash App and Square. For the third quarter, they had $5.62 billion in sales.: Square Beats Estimate, But Guidance Falls Short
Block's stock jumped as much as 19% during after-hours trading Thursday following the release of third-quarter financial results that surpassed analyst estimates for both earnings and revenue. These results were supported by strong year-over-year growth in both Cash App and Square revenue. The company reported earnings of 55 cents per share, adjusted, versus an estimate of 47 cents, and revenue of $5.62 billion versus a forecast of $5.44 billion. Additionally, Block revised their full-year adjusted EBITDA guidance to a range of $1.66 billion to $1.68 billion and their adjusted operating income guidance to $205 million to $225 million - a notable rise from earlier expectations of $25 million. Regarding 2024, the company projects a significant increase in adjusted operating income margin on a year-over-year basis and anticipates gross profit of between $7.44 billion and $7.46 billion.
In the following letter to shareholders, co-founder Jack Dorsey expressed appreciation for their trust and promised to strive for accountability. Furthermore, he identified a go-to-market strategy to target local restaurants and services businesses, as well as a refocus on engineering talent with AI technology. When asked about his future intentions, Dorsey stated his intent "to lead Square until we hit some milestones," including a return to growth, innovation and better integration of their ecosystems.
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