Block misses on earnings but beats on revenue, gross profit

Block banal roseate astir 3% successful extended trading aft the payments institution reported fourth-quarter net that missed Wall Street expectations, but posted beardown maturation successful gross profit.

Here's however Block did versus Refinitiv statement expectations:

• EPS: $0.22, adjusted, versus expectations of $0.30
• Revenue: $4.65 cardinal versus expectations of $4.61 billion

Block posted $1.66 cardinal successful gross profit, up 40% from a twelvemonth ago. That bushed Wall Street expectations of $1.53 billion.

Analysts thin to absorption connected gross nett arsenic a much close measurement of the company's halfway transactional businesses.

The institution posted a (non adjusted) nett nonaccomplishment of $114 million, oregon 19 cents per share, for the quarter

Block, formerly known arsenic Square, told CNBC successful a telephone that the institution ended the twelvemonth with 51 cardinal monthly transacting actives for Cash App successful December, with 2 retired of 3 transacting each week connected average.

Its Cash App concern reported $848 cardinal successful gross profit, a 64% year-over-year rise, according to Block. During December 2022, Cash App had 51 cardinal monthly transacting actives, an summation of 16% twelvemonth implicit year.

The institution said that its Cash App Card generated much than $750 cardinal successful gross profits successful 2022, up 56% from a twelvemonth earlier.

Its point-of-sale business, Square, saw gross nett turn 22% connected an yearly ground to $801 million.

Prior to Thursday's after-hours moves, the banal was up much than 15% successful 2023.

Executives volition sermon the results connected a league telephone starting astatine 5:00 p.m. ET.