Square-parent Block (SQ) reported first-quarter earnings and revenue that exceeded expectations, causing SQ stock to rise. The company’s earnings for the period ended March 31 were 74 cents per share on an adjusted basis, an 85% increase from the previous year. Analysts had predicted earnings of 72 cents per share. Additionally, Square’s net revenue increased by 19% to $5.96 billion, which included Cash App transactions for bitcoin. Analysts had estimated revenue to be $5.83 billion.
Financial analysts consider gross profit an important metric for SQ stock. In the first quarter, gross profit rose by 22% to $2.09 billion, surpassing estimates of $2.02 billion. Cost-cutting measures also contributed to the increase in earnings before interest, taxes, depreciation, and amortization (EBITDA), which came in at $705 million, exceeding estimates of $591 million.
Gross payment volume from the transactions of merchant customers increased by only 9% to $50.5 billion in the first quarter of 2024, falling below the estimated $55.81 billion. For the same period, Square projected EBITDA of $680 million while analysts had forecasted EBITDA of $648 million