Jack Dorsey’s Block saw its shares jump more than 11% in extended trading session on an impressive Q3 2022 outing.
Multinational tech conglomerate Block (NYSE: SQ) recently posted its Q3 2022 financial report, which showed mixed results. On Thursday, November 3rd, the Jack Dorsey-led payment facilitator said it incurred a net loss of $14.7 million in the third quarter. Block also reported that Bitcoin sales for the period ended September 30th came in at $1.76 billion.
For Q3 2022, Block reported a revenue haul of $4.52 billion compared to the consensus estimate of $4.49 billion. Furthermore, the digital financial services company stated that its realized adjusted earnings per share (EPS) is $0.42. This comfortably beats the $0.23 EPS analysts expected for the same period.
Block’s third-quarter Bitcoin gross profit amounts to approximately $37 million versus the $41 million realized in the preceding quarter. However, the Dorsey-led company also incurred a net loss regarding a $2 million impairment loss related to Bitcoin. In addition to this deficit, Block also sustained a $56 million amortization charge, which brings its net income to $43 million, excluding those charges.
Overall, Block’s gross profit for the third quarter stands at $1.57 billion, which represents a 38% increase year-over-year (YoY). Furthermore, this increase was enough to see the firm exceed Wall Street’s expectations of $1.53 billion for the same period. In Q3 2021, the company made a gross profit of $1.13 billion. Following the earnings report, Block saw its stock rise 13% in extended trading.
Square, Cash App, Also Pull Strong Numbers in Block Q3 2022 Report
Block’s other businesses, such as Square and Cash App, also recorded commendable figures in the third quarter. For instance, Square checked in with a gross profit of $783 million, up 29% YoY, while Cash App did $774 million, a 51% YoY increase.
In a letter to shareholders, Block emphasized that it showed solid growth even amid unsavory macroeconomic factors. As such, the company plans to expand its services further across the globe while consolidating in already existing markets. Part of a statement in the report read:
“We remain focused on strengthening our international presence by expanding product capabilities and improving product parity in both new and existing markets.”
Citing some of the endeavors already undertaken to actualize meaningful global expansion, Block explained that “most recently, we introduced Instant Transfers in Australia and Square Loans in the UK. Additionally, we have expanded the payment methods we support by launching our BNPL offering in Canada and the UK, helping Square sellers attract new shoppers and drive incremental revenue.”
Name Change
Nearly a year ago, Block officially changed its name from Square to better reflect its crypto and blockchain endeavors. By expanding its business scope to focus on blockchain and Web3, the company hopes to leverage emerging technologies. However, Dorsey explained at the time that Block’s core functionally remains unchanged, saying:
“Block is a new name, but our purpose of economic empowerment remains the same.”
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Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge.
When he’s not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.
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