Block shares jump as the company publishes strong results

Block, the parent company of Square, reported strong quarterly results, signaling that the company had more room to grow. As a result, its stock price jumped by more than 20% on Friday.

Block earnings

Block is a large financial technology company that offers multiple services. The company owns a number of well-known brands like Square, AfterPay, Tidal, and Cash App. 

The company made a gross profit of $4.42 billion, which was up by about 62% from the same period in 2020. Further, its gross payment volume rose to over $46.5 billion in the third quarter while its revenue excluding Bitcoin rose to $2.12 billion. Its transaction revenue rose by 41% year-on-year to more than $1.31 billion.

Cash App, its fast-growing peer-to-peer payment company, had over $2.55 billion in the fourth quarter while its Bitcoin revenue dropped to $1.96 billion.

These results helped to ameliorate the damage seen in the company’s stock. The shares rose by more than 20% although they remain down by over 40% from their highest level in 2021.

Block growth leveling

Like most fintech companies, Block had a strong performance during the pandemic as the number of people shopping online rose. The company also benefited from the rising transactions through Cash App, the fast-growing peer-to-peer marketplace. Most importantly, its revenue from Bitcoin processing jumped sharply. 

However, with the world going through a new normal, analysts expect that its future growth will be lower than where it was during the pandemic.