From CNBC: 2024-05-02 19:31:47

Block reported strong first-quarter earnings, surpassing analysts’ expectations. The stock rose over 7% after-hours. Earnings per share were 85 cents, compared to the expected 72 cents, with revenue at $5.96 billion, beating the $5.82 billion estimate. Gross profit reached $2.09 billion, up 22% from last year. Net income also quadrupled.

Block’s Cash App reported $1.26 billion in gross profit, with 24 million monthly active users in March. The company is integrating Afterpay after acquiring it for $29 billion in 2021. However, Cash App is under federal scrutiny for alleged compliance issues, leading to an 8% drop in the stock.

Federal prosecutors are investigating Block’s compliance practices. Share prices fell after leaks suggesting non-reported transactions to relevant authorities. Block is under scrutiny for breaches in anti-money-laundering rules and management negligence. Similar issues were raised earlier, prompting concerns about fines or additional oversight. Short seller Hindenburg Research previously alleged compliance deficiencies and inflated metrics.



Read more at CNBC:: Block (SQ) earnings Q1 2024