Block shares moved higher in pre-market trading on Friday after the San Francisco-based fintech posted an earnings beat driven by the strong performance of its payment platform Cash App during the first quarter.
The parent company of Square posted a 32% year-over-year jump in gross profit at $1.71 billion, with Cash App’s gross profit up 49% at $931 million and Square’s gross profit up 16% at $770 million.
Its net loss per share in the quarter was $0.03, ahead of Wall Street’s expectations of a loss per share of $0.34.
Revenue jumped 26% over the year-ago quarter to $4.99 billion, beating the Street’s expectation of $4.58 billion.
The company also revised up its 2023 outlook, raising its guidance for adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) to $1.36 billion from $1.3 billion and lowering its forecast adjusted operating loss from $150 million to $115 million.
Shares of Block were up 3% at US$62.21 before the opening bell in New York.
Contact the author at emily.jarvie@proactiveinvestors.com
Follow her on Twitter @emilyjjarvie