Image

Block (SQ) earnings Q2 2024

Block beat on profit in its second-quarter earnings report on Thursday. The stock rose in extended trading.

Here is how the company did, compared to analysts’ consensus estimates from LSEG.

  • Earnings per share: 93 cents adjusted vs. 84 cents expected
  • Revenue: $6.16 billion vs. $6.28 billion expected

Block, formerly known as Square, posted $2.23 billion in gross profit, up 20% from a year ago. Analysts tend to focus on gross profit as a more accurate measurement of the company’s core transactional businesses.

The company reported net income of $195.3 million, or 31 cents per share, up 91% from $102 million, or 17 cents per share, a year earlier.

The Cash App business, the company’s popular mobile payment platform and a significant contributor to overall profitability, reported $1.3 billion in gross profit, a 23% year-over-year jump. Block, run by Twitter co-founder Jack Dorsey, said its Cash App Card monthly active users increased 13% year over year to more than 24 million in June.

Block has slimmed down operations over the past year. In January, Dorsey reportedly said in a note to staffers that the company had laid off a “large number” of workers. This followed a round of layoffs in December.

The company raised its full-year guidance for gross profit, adjusted earnings and adjusted operating income.

Dorsey also announced that Afterpay CEO and co-founder Nick Molnar would be expanding his role at Block and will lead a “centralized sales function across Block, inclusive of Square.” The position will report directly into the Block CEO.

Don’t miss these insights from CNBC PRO

CNBC’s Stephen Desaulniers contributed to this report.

SHARE THIS POST