Jack Dorsey, co-founder and CEO of Twitter Inc. Square Inc., listens during the Bitcoin 2021 conference in Miami, Florida, on Friday, June 4, 2021.
Eva Marie Uzcategui | Bloomberg | Getty Images
The bloc's shares rose as much as 14% in extended trading Thursday after the payments company mentioned Q4 earnings beat analyst estimates on gross profit and showed strong growth in Square and Cash App revenue.
Here's how the company performed, compared to the analyst consensus from LSEG, previously Refinitiv:
- Earnings per share: 45 cents, adjusted. It cannot be compared with estimates.
- he won: $5.77 billion versus $5.70 billion expected
Block reported $2.03 billion in gross profits, up 22% from last year. Analysts tend to focus on gross profit as a more accurate measure of a company's core transactional business.
The company raised its revised earnings before interest, taxes, depreciation and amortization forecast to at least $2.63 billion from $2.40 billion.
Block, formerly known as Square, ended the year with 56 million monthly Cash App transaction activity in December, with most of those customers using either peer-to-peer payments or a Cash App Card.
Its Cash App business reported gross revenue of $1.18 billion, an increase of 25% year over year.
The company, run by Jack Dorsey, said the Cash App Card had 23 million monthly activities in December, up 20%. This is more than double the growth rate of total monthly activities.
“We believe this strategy will enable us to build the largest network over the long term, with a highly active customer base that uses Cash App as their primary banking solution,” Dorsey said in a note to shareholders.
The payments company has focused on reducing operations in recent months. In January, CEO Block It said She said in a memo to employees that the company had laid off a “large number” of workers. This came after another round of layoffs in December.
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