Block, formerly known as Square, reported weaker-than-expected revenue and profit for the fourth quarter, causing its stock to drop over 6% in extended trading. The company’s earnings per share fell short of analyst estimates at 71 cents adjusted versus 87 cents expected.
Revenue came in at $6.03 billion, a 4.5% increase from last year but below the expected $6.29 billion. Block also reported a 14% growth in gross profit to $2.31 billion, exceeding analyst estimates of $2.02 billion.
Despite missing earnings estimates, Block remains optimistic about its future prospects. The company expects to deliver 15% gross profit growth this year and increase adjusted operating income to $2.1 billion with a margin of 21%. Block’s payments business has expanded into lending and financial services, with the recent launch of Afterpay on the Cash App card.
CEO Jack Dorsey believes that combining more services will create increased spending and engagement. He also stated that integrating Cash App and Square into a single financial ecosystem will reduce the need for users to rely on multiple apps.
Block’s long-term vision includes expanding its open bitcoin mining system, Proto, which is expected to start benefiting growth in the second half of 2025. The company plans to manufacture chips to roll out this year, alongside its full mining systems, and aims to change market dynamics with its well-performing system.
Source: https://www.cnbc.com/2025/02/20/block-xyz-earnings-q4-2024.html