Jack Dorsey creator, co-founder, and Chairman of Twitter and co-founder & CEO of Square arrives on stage at the Bitcoin 2021 Convention, a crypto-currency conference held at the Mana Convention Center in Wynwood on June 04, 2021 in Miami, Florida.
Joe Raedle | Getty Images
Shares of fintech firm Block surged as much as 19% in after-hours trading Thursday, after the company reported third-quarter earnings that beat analyst estimates on the top and bottom line and showed strong growth in both Cash App and Square revenue.
Here’s how the company did, compared to an analyst consensus from LSEG, formerly Refinitiv:
- Earnings per share: 55 cents, adjusted, vs. 47 cents expected
- Revenue: $5.62 billion, vs. $5.44 billion expected
Total net revenue grew 24% year-over-year, from $4.52 billion to $5.62 billion. Bitcoin revenue climbed from $1.76 billion to $2.42 billion year-over-year. Gross profit climbed 21% compared to the year-ago period, from $1.57 billion to $1.90 billion.
Adjusted EBITDA came in at $477 million, compared to $327 million in the year-ago period. There was particularly strong growth in Block’s payment platform, Cash App, and its point-of-sale suite, Square. Cash App revenue was $3.58 billion, growing 34% year-over-year, while Square revenue grew 12% year-over-year to $1.98 billion.
“We’ve been quiet lately because we’ve been focused,” Block co-founder Jack Dorsey said in a letter to shareholders. Block was the target of a short-seller attack earlier this year which alleged its Cash App product facilitated fraud. “We want to thank all of you for your trust and continued belief in our work. We will work to balance that trust with accountability, some of which I hope this letter provides,” Dorsey’s letter concluded.
Dorsey said the company would focus on its go-to-market strategy, targeting local restaurants and services businesses to grow, and would refocus engineering talent using A.I. technology.