Block, formerly known as Square, reported a rise in third-quarter revenue as the growth of Cash App offset the stagnant prices for cryptocurrencies that had slowed the payments platform, led by Twitter founder Jack Dorsey, in previous quarters.
Block’s stock jumped 14% in after-hours trading following the third quarter earnings report. Before the close of trading, the stock had fallen more than 66% since the start of the year. The gross payment volume (GPV), which measures the total amount of dollar payments processed by sellers on the company’s payment ecosystem, also rose by 20%, exceeding analysts “expectations.
Block, whose Cash App is one of the top ten payment services in the world, increased adjusted earnings per share excluding certain items to $0.42, compared with a consensus estimate of $0.37. Revenue rose 17% to $4.5 billion, as expected.
Block also reported a 51% increase in Cash App revenue to $774 million as the company streamlined its banking services through the app and saw growth in its Cash App Card. Square, its division that sells payment terminals and software to businesses, also posted a gross profit of $783 million, a 29% increase.
“We’re encouraged by the growth rate, frankly, that we see in both businesses with continued growth… for each Cash App and Square, and we think there are tremendous opportunities against both customer sets to continue to provide value,” said Amrita Ahuja, Chief Financial Officer of Block
The company posted a net loss of 2 cents per share in the third quarter, and its stock has fallen 79% in the past year, compared with a 20% decline in the S&P 500 index.
The sources for this piece include an article in Reuters.