Block (SQ) Revenue This fall 2022

block The 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 compared to Refinitiv’s consensus expectations:

  • EPS: 22 cents adjusted versus 30 cents expected
  • Revenue: $4.65 billion versus expectations of $4.61 billion

Block posted gross profit of $1.66 billion, up 40% from a year ago. That beat Wall Street’s expectations of $1.53 billion.

Analysts typically focus on gross profit as a more accurate measure of the company’s transactional business.

The company posted a net loss (unadjusted) of $114 million, or 19 cents a share, for the quarter

Twitter CEO Jack Dorsey addresses students at a city hall at the Indian Institute of Technology (IIT) in New Delhi, India, on November 12, 2018.

Anushree Fadnavis Reuters

Block, formerly known as Square, told CNBC in a call that the company ended the year with 51 million monthly transactions for Cash App in December, with an average of two out of every three transactions completed each week.

According to Block, the cash app business reported gross profit of $848 million, up 64% year over year. As of December 2022, Cash App had 51 million active transactions per month, a 16% increase over the previous year.

The company, which is led by CEO Jack Dorsey, said its Cash App Card generated gross profits of more than $750 million in 2022, a 56% increase from the same period last year.

Point-of-sale business Square saw a 22% annual increase in gross profit to $801 million.

Before Thursday’s after-hours moves, the stock is up more than 15% in 2023.

Executives will discuss the results in a conference call starting at 5:00 p.m. ET.

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