Block (SQ), formerly known as Square, saw its stock price jump nearly 14% in premarket trading on Friday after releasing its Q4 2023 earnings report. The report revealed impressive results, including:
- 22% increase in gross profit to $2.03 billion compared to the previous year.
- Adjusted EBITDA forecast raised to at least $2.63 billion, exceeding the prior estimate of $2.40 billion.
- Strong growth in Cash App users, reaching 56 million monthly transacting actives primarily using the platform for peer-to-peer payments and the Cash App Card.
- Cash App gross profit surged 25% year-over-year to $1.18 billion.
These positive results fueled investor optimism, pushing the stock price up to $77.23 before the market opened on Friday. This rise comes despite the company’s recent major layoffs aimed at streamlining operations.
Key Takeaways:
- Block’s Q4 2023 earnings demonstrate a robust financial performance and future growth potential.
- The company’s focus on the Cash App business, with its potential to become a primary banking solution for users, is seen as a key driver for future success.
- Despite recent challenges like layoffs, Block’s strong earnings report suggests a positive outlook for the company.
