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Block rises: profits and sales increased in the first quarter of 2024
Block shares still close lower after positive quarterly figures: Square parent raises profit forecast. Find out all the details about the increase and the new forecasts.𝔂𝓴𝓿𝓪𝔂𝓮𝓽. 𝓗𝓲𝓮𝓻 𝓼𝓲𝓬𝓱 𝓶𝓮𝓻: 𝔉𝓸𝓵𝓰𝓮𝓷 𝓢𝓲𝕥𝔃𝓮𝓷.
Block rises: profits and sales increased in the first quarter of 2024
Block, the payments company founded by Twitter founder Jack Dorsey, recently released its first quarter 2024 numbers. The company's gross profit was $2.09 billion, up 22 percent year over year. Cash App's gross profit was particularly pleasing, increasing by 25 percent to $1.26 billion. Square also reported a 19 percent increase in gross profit to $820 million. These improved numbers exceeded analysts' expectations.
The positive development is attributed to Block's cost strategy as well as the strong performance of its two main businesses, Cash App and Square. Chief Financial Officer Amrita Ahuja highlighted that both the number of transactions and inflows per active user have increased. Block saw healthy trends in customer usage of the platform and also saw moderate growth in U.S. retail sales.
Block raised its full-year 2024 forecast and now expects gross profit of $8.78 billion. Adjusted earnings before interest, taxes, depreciation and amortization are forecast at $2.76 billion. Second-quarter gross profit is expected to be between $2.165 billion and $2.185 billion, while adjusted EBITDA is expected to be between $670 million and $690 million.
Block's investment in Bitcoin was also discussed. The company emphasized that it believes in the need for an open monetary protocol and sees Bitcoin as the best candidate to make it happen. Despite less than 3 percent of the company's resources being dedicated to Bitcoin projects, Block continues to invest in the cryptocurrency.
Although the news was initially received positively, Block shares saw a decline in Friday trading. After a gain of 5.18 percent on Thursday, the share ultimately closed 1.18 percent lower at $69.40. This development contrasts with investors' previous euphoria over increased earnings forecasts.