Block Misses Profit Estimates on Weak Consumer Spending
Block Inc. reported lower-than-expected third-quarter profits on Thursday, as economic uncertainty and growing competition in the payments market pressured results. Following the earnings release, the company’s shares dropped by more than 11 percent in after-hours trading.
Square Segment Performance
The Square unit, which offers payment solutions for small and medium-sized businesses, recorded a gross profit of $1.02 billion, rising from $932 million a year earlier. However, growth decelerated to 9 percent compared to 16 percent in the previous year’s quarter.
Bitcoin Revenue Decline
Revenue from Bitcoin transactions fell to $1.97 billion for the quarter ending September 30, down from $2.43 billion a year ago. The company acquires Bitcoin from private brokers and resells it to customers with a small markup.
Cash App Shows Improvement
Cash App reported stronger gross profit and noted improved growth compared with the same quarter last year. Still, increased competition from peer-to-peer payment services continues to challenge its expansion.
Earnings and Market Expectations
“The Jack Dorsey-led payments company posted an adjusted net income of 54 cents per share, compared with analysts’ average estimate of 67 cents,”
according to data compiled by LSEG.
Author Summary
Block’s latest earnings miss highlights how tightening consumer spending and heavy competition are tempering growth across its core digital payment platforms.
More News
- Pick of the Pantry: UVA students learn to turn boxed and canned foods into delicious dishes
- Elkhart Councilman Aaron Mishler assisting in Hurricane Melissa cleanup efforts
- The No-Frills Diner In Pennsylvania That Secretly Serves The Best Battered Cod In The State
- Calm down Dems, your socialist champagne will age quickly
- Vote for Cambrian News to make a difference
- Dem Senator Scolds Moreno Over Shutdown, Misses Key Points