From Nasdaq: 2024-11-08 12:46:00

Block, Inc. reported third-quarter 2024 adjusted earnings of 88 cents per share, matching estimates and showing a 76% year-over-year increase. Despite missing revenue expectations, the company offered strong guidance for the fourth quarter and increased 2024 outlook for adjusted EBITDA and operating income. Partnerships with companies like Lyft and Google Play are expected to drive growth.

Transaction revenues were up 3.2% year over year, with Square ecosystem revenues increasing by 7%. Subscription and Services revenues grew by 20.4%, while Bitcoin revenues saw a slight uptick. Gross Payment Volume also increased from the previous year. The company’s operating details showed a significant year-over-year improvement in gross profit and adjusted EBITDA.

Block’s balance sheet revealed a higher cash balance and unchanged long-term debt. The company repurchased shares and has remaining authorization for more buybacks. Positive guidance for the fourth quarter and 2024 was provided, indicating growth in gross profit, adjusted EBITDA, and operating income. The company aims to achieve the Rule of 40 by 2026.

Zacks Rank currently lists Block as a Hold with potential for growth. As infrastructure spending increases, companies like Block stand to benefit from the influx of funds into various sectors. Download a free report on profiting from the trillion-dollar infrastructure boom and explore potential stock opportunities in this growing market.



Read more at Nasdaq: Block Q3 Earnings Meet Estimates: Can Strong Guidance Aid the Stock?