Jack Dorsey, co-founder and CEO of Twitter Inc. and Square Inc., listens during the Bitcoin 2021 conference on Friday, June 4, 2021, in Miami, Florida.
Eva Marie Uzcategui | Bloomberg | Getty Images
clogged Shares of the payments company rose 14% in after-hours trading Thursday report Fourth-quarter profit beat analysts’ gross profit expectations and showed strong revenue growth at Square and Cash App.
Here’s how the company performed compared to the analyst consensus for LSEG (formerly Refinitiv):
- Earnings per share: 45 cents, adjusted. Not comparable to estimates.
- income: US$5.77 billion, expected US$5.7 billion
Block reported gross profit of $2.03 billion, an increase of 22% over the same period last year. Analysts tend to focus on gross profit as a more accurate measure of a company’s core trading business.
The company raised its adjusted EBITDA forecast to at least $2.63 billion from $2.4 billion.
Block (formerly Square)’s Cash App saw 56 million monthly active transactions in December, with the majority of customers using it for peer-to-peer payments or Cash App cards.
The gross profit of its cash application business was US$1.18 billion, an increase of 25% compared with the same period last year.
The company, run by Jack Dorsey, said its Cash App Card had 23 million monthly active users in December, a 20% increase. This is more than double the growth rate of total monthly active users.
“We believe that over the long term, this strategy will allow us to build the largest network with a highly engaged customer base and use Cash App as our primary banking solution,” Dorsey said in a note to shareholders.
The payments company has been working to streamline its operations in recent months.In January, Block CEO It is said In a note to employees, the company said it had laid off “a significant number” of workers. This follows another round of layoffs in December.
