Block Inc (SQ) revealed its fourth-quarter financial performance post-market close on Thursday, marking notable highlights for investors.
The company reported robust fourth-quarter revenue of $5.77 billion, marking a substantial 24% increase year-over-year. This figure exceeded the Street’s consensus estimate of $5.70 billion, reflecting strong market demand for its fintech solutions.
However, Block’s adjusted earnings per share (EPS) fell short of expectations at 45 cents, compared to a Street consensus estimate of 59 cents per share. Despite this, the company achieved a gross profit of $2.03 billion in the fourth quarter, showcasing its operational strength.
Transaction revenue experienced a healthy uptick, reaching $1.60 billion, up 8% year-over-year, with a total Gross Payment Volume (GPV) of $57.49 billion, also up 8% year-over-year.
Looking ahead, Block provided guidance for the first quarter, anticipating gross profit to range between $2.0 billion to $2.02 billion, representing a 24% year-over-year increase at the midpoint. Additionally, the company aims for an adjusted EBITDA of $570 million to $590 million for the first quarter.
Block remains committed to its growth strategy, aiming to achieve significant milestones in the coming fiscal years, as emphasized by CEO Jack Dorsey. Investors reacted positively to the news, with shares rising 13% to $76.81 in after-hours trading on Thursday.
