Block stock gains 6% in premarket trading after the company gave upbeat signals about its Cash App business.
When excluding contributions from Block's newly closed acquisition of buy-now pay-later operator Afterpay, the company reported $578 million in gross profit for its Cash App mobile wallet, which several analysts said came in ahead of their estimates and signaled healthy trends.
Block (SQ) pointed to several momentum drivers on Thursday's earnings call, including growing interest in direct deposits to the Cash App and increased transaction activity. Chief Financial Officer Amrita Ahuja said that the March quarter was Block's best for Cash App inflows, and the company sees opportunity to further build awareness of the direct-deposit function.
"Cash App was the standout of Q1," Barclays analyst Ramsey El-Assal wrote, highlighting that monthly active users transacted an average of 21 times across the ecosystem during the month of March.
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