Key points:
- Block’s stock price increased by 7.5% following Q1 earnings report
- Block raised its 2024 gross profit guidance to $8.78 billion
- 2024 adjusted EBITDA guidance increased to $2.76 billion
Block, the parent company of Square, reported adjusted earnings of 84 cents to a share on revenue of $5.96 billion, leading to a 7.5% increase in stock price. The company’s revenue rose 19% in the first quarter. Transaction-based revenue also rose 6% from the same time last year, to $1.51 billion.
The Cash App ecosystem contributed $4.17 billion to net revenues for the reported quarter, up 23% year over year. Block witnessed solid traction across the Square ecosystem, generating $1.73 billion in revenues, up 11% year over year. The company also experienced strong growth in subscription revenues.
Block’s gross payment volume (GPV) in the first quarter amounted to $54.43 billion, up 6% from the year-ago quarter. The company continued to experience improvements in its card-present volumes in the reported quarter. The card-present GPV was up 12% from the year-ago quarter. The company’s card-not-present GPV reflected year-over-year growth of 3% in the first quarter.
The company generated $1.68 billion in revenues from the Subscription and Services category, jumping 23% from the year-ago quarter. The company also generated revenues of $2.73 billion from the Bitcoin category, up 26.2% year over year.
For the second quarter, Block is guiding for gross profit of $2.16 billion to $2.18 billion. For the full year 2024, it raised its guidance for gross profit to $8.78 billion from $8.65 billion. The guidance for 2024 adjusted EBITDA was increased from $2.63 billion to $2.76 billion. Management also revised the guidance for operating income from $1.15 billion to $1.30 billion.
