Shares of Block Soared over 20% in Morning Trading as Q4 Results Beat Estimates

Shares of Block Soared over 20% in Morning Trading as Q4 Results Beat Estimates.

Payments platform Block beat profit estimates, as busier trading in bitcoin softened the blow from declining growth in digital commerce.

Block, which changed its name from Square in December, posted net revenue of $4.08 billion in the fourth quarter, up from $3.16 billion last year, as several of the firm’s business lines continued to grow. The company reported a profit of $1.18 billion, up from the $804 million a year earlier.

Square, the company’s business for sellers, generated a profit of $657 million, while Cash App reported a profit of $518 million. Square’s profit from markets outside the United States grew 60% year-over-year in the fourth quarter, faster than the business overall.

Block reported earnings per share of $0.27, beating analysts' average estimates of $0.22. Despite the report, shares of Block fell as much as 4.5% in after-hours trade to $91.44 following results.

Block's Cash App generated $1.96 billion of bitcoin revenue during the fourth quarter, up 12% year over year despite the cryptocurrency’s sharp swings in value through the end of the year.