Block Stuns With Q4 Earnings Beat, Shares Skyrocket

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Aktsiad
financial services company Block Inc. (NYSE: SQ) jumped as much as 14% during
after-hours trading on Thursday following the release of better-than-expected
fourth quarter financial results. The company, formerly known as Square, posted
revenue of $5.77 billion, which topped Wall Street’s estimates.

Võibolla
most notably, Block reported a surprise profit for the quarter when analysts
had projected a loss. The strong growth of Block’s Cash App and Square products fueled the outperformance, and total net revenue came in at $5.77 billion versus the forecasted $5.70 billion. Block also raised its full-year adjusted EBITDA
guidance to at least $2.63 billion, up from the prior outlook of $2.40 billion.

Allikas: Block

Kasutus
metrics of Block’s Cash App remained robust during the quarter. The
peer-to-peer maksed app had 56 million monthly active users in December, the
majority of which actively utilized features like the Cash Card or direct
deposits. Block said the Cash Card itself now boasts 23 million monthly active
kasutajad.

Uudised
caused Block shares on Wall Street to rise even after the official Thursday’s session
tundi:

Allikas: Tradingview.com

“Cash App
aims to become one of the top providers of banking services to households in
the United States which earn up to $150,000 per year, a segment that represents
approximately 80% of consumers and more than 50% of household income,” the
company commented in the report.

Neljas
quarter capped a transitional year for the payments firm. Formerly known as
Square, the company rebranded as Block in December to better reflect its
growing suite of products across areas like crypto and music. The year also saw
kõrge profiiliga Tegevjuht Jack Dorsey step down from his dual role leading Twitter to
focus solely on Block.

"Me usume
this strategy will enable us to build the largest network in the long run, with
a highly engaged customer base using Cash App as their primary banking
solution,” Dorsey commented.

Block’s Big Trim

Vaatamata
achieving strong financial results and positive market reactions in after-hours
trading, Block Inc. faces challenges, including implementing layoffs as
part of a cost-reduction strategy initiated in the previous year. Reuters
recently cited an insider confirming that the company began reducing its
workforce in January to streamline operations and manage expenses.

Novembris
2023, Block Inc. disclosed plans to decrease its employee count from
approximately 13,000 to 12,000 by the end of 2024, indicating the recent job
cuts as the first step towards achieving this reduction through performance
evaluations and structural adjustments. The company acknowledged that its
workforce had expanded more rapidly than its primary business and revenue
ojad.

Owned by Dorsey,
Block Inc. is also known for being one of the most significant publicly traded
corporations with investments in Bitcoin , holding over 8,000 tokens valued at
around $342 million. Among its notable BTC investments was a purchase worth
$ 170 miljonit nearly three years ago, at an average price of $51,000 per
Bitcoin, highlighting its significant position in the cryptocurrency market.

Allikas: Block

Uudised
caused Block shares on Wall Street to rise even after the official Thursday’s session
tundi:

Allikas: Tradingview.com

"Me usume
this strategy will enable us to build the largest network in the long run, with
a highly engaged customer base using Cash App as their primary banking
solution,” Dorsey commented.