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Block increases profits and sales: Cash App and Square drive business
New profit forecast from Square parent sends shares high: Find out how Block rose in the first quarter of 2024 and exceeded expectations. Great developments await! #Square #Earnings Forecast #Stocks High
Block increases profits and sales: Cash App and Square drive business
Block reported its financial results for the first quarter of 2024 and surprised positively with gross profit of $2.09 billion, an increase of 22 percent compared to the previous year. The Cash App and Square divisions in particular contributed to this success. Cash App reported gross profit of $1.26 billion, while Square posted a profit of $820 million, both above analysts' expectations.
Adjusted earnings before interest, taxes, depreciation and amortization rose to $705 million, with experts viewing gross profit as a key indicator of success. Block attributes the profit increase to its cost strategy as well as the growth of Cash App and Square. The CFO highlighted positive trends such as the increase in transactions and inflows per user.
For full-year 2024, Block raised its profit forecast, and the company now expects gross profit of $8.78 billion and adjusted earnings of $2.76 billion. Second-quarter gross profit is expected to be between $2.165 billion and $2.185 billion. Block also responded to criticism of their Bitcoin investments by emphasizing that less than 3 percent of their resources are dedicated to these projects.
This positive news led to a rise in Block's stock on the exchange, which rose 5.18 percent to $70.30 on Thursday and climbed another 3.26 percent to $72.58 on Friday. Investors celebrated the development, especially compared to the stock's year-to-date performance, which has fallen 9.11 percent since the beginning of the year.