Block Inc (NYSE:SQ) shares dropped over 3% in after-hours Thursday trading despite the company reporting better-than-expected Q2 results and upping the full-year profit forecast.
Block reported an adjusted EPS of $0.39 on revenue of $5.53 billion (up 26% year-over-year). Analysts were looking for EPS of $0.34 on revenue of $5.12B. Cash App revenue grow as much as 36% YoY to $3.56B, easily topping the consensus of $3.17B.
Following Q2 outperformance, the company now expects to report full-year adjusted Ebitda of $1.5B, up from the prior $1.36B forecast. The adjusted operating is now expected to be positive $25 million, compared to the prior forecast for a loss of $115M.
“More than half of Cash App’s actives in the second quarter had a network of four or more accounts, which significantly enhanced retention and increased spend over time: Peer-topeer transactions per active reached an all-time quarterly high in the second quarter, while peer-to-peer volume was $53 billion, up 18% year over year,” the company said.