Block (SQ) earnings Q4 2022

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Twitter CEO Jack Dorsey addresses students during a town hall at the Indian Institute of Technology (IIT) in New Delhi, India, November 12, 2018.

Anushree Fadnavis | Reuters

Block stock rose about 3% in extended trading after the payments company reported fourth-quarter earnings that missed Wall Street expectations, but posted strong growth in gross profit.

Here’s how Block did versus Refinitiv consensus expectations:

  • EPS: $0.22, adjusted, versus expectations of $0.30
  • Revenue: $4.65 billion versus expectations of $4.61 billion
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Block posted $1.66 billion in gross profit, up 40% from a year ago. That beat Wall Street expectations of $1.53 billion.

Analysts tend to focus on gross profit as a more accurate measurement of the company’s core transactional businesses.

The company posted a (non adjusted) net loss of $114 million, or 19 cents per share, for the quarter

Block, formerly known as Square, told CNBC in a call that the company ended the year with 51 million monthly transacting actives for Cash App in December, with two out of three transacting each week on average.

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Its Cash App business reported $848 million in gross profit, a 64% year-over-year rise, according to Block. During December 2022, Cash App had 51 million monthly transacting actives, an increase of 16% year over year.

The company said that its Cash App Card generated more than $750 million in gross profits in 2022, up 56% from a year earlier.

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Its point-of-sale business, Square, saw gross profit grow 22% on an annual basis to $801 million.

Prior to Thursday’s after-hours moves, the stock was up more than 15% in 2023.

Executives will discuss the results on a conference call starting at 5:00 p.m. ET.

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