Shares of Block Soared over 15% Premarket as Q4 Results Beat Estimates.
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.