Block (NYSE:SQ) watched its shares climb after Block reported better-than-expected revenue in its fourth-quarter results. The company posted revenue of $4.65 billion, beating Refinitiv consensus estimates for $4.61 billion. However, Block missed estimates, posting adjusted earnings of 22 cents per share compared to expectations for 30 cents per share.
Block posted $1.66 billion in gross profit, up 40% from a year ago. That beat Wall Street expectations of $1.53 billion.
Analysts tend to focus on gross profit as a more accurate measurement of the company’s core transactional businesses.
The company posted a (non-adjusted) net loss of $114 million, or 19 cents per share, for the quarter.
Block, formerly known as Square, ended the year with 51 million monthly transacting actives for Cash App in December, with two out of three transacting each week on average.
The company, which is run by CEO Jack Dorsey, said its Cash App Card generated more than $750 million in gross profits in 2022, up 56% from the year-earlier period.
Its point-of-sale business, Square, saw gross profit grow 22% on an annual basis to $801 million.
Prior to Thursday’s after-hours moves, the stock was up more than 15% in 2023. It opened Friday up $1.06, or 1.4%, to $75.21.
Executives will discuss the results on a conference call starting at 5 p.m. ET.
