Square-parent Block (SQ) 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.
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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.
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