Block (NYSE:SQ) reported third-quarter earnings that met expectations, but revenue fell short of analyst estimates, sending shares down 10% in after-hours trading.
The financial technology company, formerly known as Square, reported adjusted earnings per share of $0.88, in line with analyst projections. However, revenue for the quarter came in at $5.98 billion, missing the consensus estimate of $6.24 billion.
Despite the revenue shortfall, Block saw strong growth in its key business segments. Gross profit grew 19% YoY to $2.25 billion, with Cash App generating $1.31 billion in gross profit, up 21% YoY, and Square contributing $932 million, a 16% YoY increase.
"We outperformed our gross profit and profitability guidance in the third quarter of 2024," said CEO Jack Dorsey. "Cash App continued its strong performance, driven primarily by growth in inflows per active and an increase in monetization rate."
Block reported operating income of $323 million and adjusted operating income of $444 million for the quarter. The company's adjusted operating income margin expanded to 20%, reflecting strong growth and disciplined expense management.
For the full year, Block maintained its gross profit guidance of at least $8.89 billion, representing 18% YoY growth. The company raised its full-year outlook for adjusted operating income to at least $1.56 billion, or an 18% margin.