Square-parent Block on Thursday reported second-quarter earnings that topped estimates while revenue missed on lower than expected Bitcoin transactions. Square stock climbed as most key financial metrics and guidance came in above expectations.
Released after the market close, Square earnings for the period ended June 30 were 93 cents per share on an adjusted basis, up 138% from the year-earlier period. Analysts had projected earnings of 84 cents a share.
Also, Square said net revenue came in at $6.16 billion, up 11% from a year earlier, including Cash App transactions for Bitcoin. Square stock analysts had predicted revenue of $6.27 billion.
Square Stock: Gross Profit, EBITDA
Financial analysts also view gross profit as a key metric for SQ stock. In Q2, gross profit rose 20% to $2.23 billion vs. estimates of $2.02 billion.
Cost-cutting boosted earnings before interest, taxes, depreciation and amortization, a key metric known as EBITDA. It came in at $759 million, up 97%, vs. estimates of $689 million.
In Q2, gross payment volume from the transactions of merchant customers rose 7.8% to $58.37 billion, missing estimates of $58.98 billion.
On the stock market today, Square stock rose more than 4% to 62.56 in extended trading.
For the third quarter of 2024, Square said it expects EBITDA of $695 million. Analysts had projected September-quarter EBITDA of $679 million.
In Q2, Square forecast gross profit of $2.22 billion, roughly in line with estimates of $2.2 billion.
Also, SQ stock had retreated 19% in 2024 heading into the Block earnings report. San Francisco-based Block's earnings included consumer lending firm Afterpay.
In its core businesses, Square operates a two-sided digital payments ecosystem, with products designed for both merchant sellers and consumer buyers.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
