Financial company Block Inc (NYSE:SQ) reported second-quarter financial results after the market close Thursday. Here are the key highlights for investors and details on how Bitcoin (CRYPTO: BTC) impacted the results.
What Happened: Block Inc, which changed its name from Square in December, reported second-quarter revenue of $4.4 billion, down 6% year-over-year.
Revenue beat a Street consensus total of $4.35 billion, according to data from Benzinga Pro.
The company said excluding Bitcoin, second-quarter revenue was $2.62 billion, up 34% year-over-year.
Block reported earnings per share of 18 cents in the second quarter, beating a Street consensus of 17 cents per share.
The company reported a gross profit of $1.47 billion in the second quarter, up 29% year-over-year. Gross profits for both Square and Cash App grew by 29% year-over-year, with Square seeing $755 million and Cash App seeing $705 million.
Block highlighted its food and drink business seeing the fastest gross profit of any company unit on a five-year CAGR basis. GPV from Square for Restaurants has more than doubled year-over-year through the first six months of the year. New mobile point-of-sale software was launched in the second quarter for tableside ordering and queues.
The company’s Cash App Borrow segment was highlighted ,with over 1 million active accounts in June. For growth for its Cash App business, Block is focusing on: community, financial services, crypto, operating system, trust, commerce and global.
Forty-seven million accounts that transacted on Cash App in the month of June. Retention was cited as strong and improving for Cash App.
In-person buy-now, pay-later with Afterpay was launched in May for sellers in the U.S. and Australia.
“These in-person capabilities build upon our online integration, creating a truly omnichannel BNPL experience for buyers,” the company said.
Related Link: More Runway Left For Block
What’s Next: Block sees a focus on three strategic priorities moving forward: omnichannel, growing upmarket and expanding globally.
The company said the month of July is expected to see Square GPV up 18% year-over-year. Cash App business is expected to see gross profits up year-over-year for the month of July. The company said Cash App and Square are both well positioned to help customers and grow based off recent trends.
Block updated investors on its operating expenses guidance.
“We intend on being disciplined with our investments, particularly as we enter a potentially dynamic macro environment,” the company said.
SQ Price Action: Block shares were down 5.35% at $84.90 in after-hours trading Thursday.
Photo courtesy of Square.
