From Financial Modeling Prep: 2024-11-08 07:41:00

Block (NYSE:SQ) shares dipped 2% in pre-market trading after posting Q3 earnings that met expectations but missed revenue targets. Adjusted EPS was $0.88, in line with estimates, while revenue came in at $5.98 billion, below the expected $6.24 billion.

Despite the revenue miss, Block’s key segments saw strong performance, with gross profit up 19% YoY to $2.25 billion. Cash App generated $1.31 billion in gross profit, up 21% YoY, while the Square segment contributed $932 million, a 16% increase.

Block reported $323 million in operating income, with adjusted operating income hitting $444 million, a 20% margin due to growth and cost control. CEO Jack Dorsey highlighted Cash App’s strong growth driven by increased user inflows and better monetization.

Block maintained its full-year guidance of at least $8.89 billion in gross profit, an 18% growth rate, and raised adjusted operating income forecast to $1.56 billion, an 18% margin. The company remains optimistic about future growth prospects.



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