OAKLAND, Calif. - Block, Inc. (NYSE:SQ) reported second-quarter earnings that surpassed analyst expectations and raised its full-year guidance, sending its stock up around 6% in premarket trading Friday.
The financial technology company posted adjusted earnings per share of $0.93, beating the analyst estimate of $0.84. However, revenue for the quarter came in at $6.16 billion, falling short of the consensus estimate of $6.26 billion.
Block raised its full-year 2024 outlook, now expecting gross profit of at least $8.89 billion, representing 18% YoY growth. This is up from its previous guidance of $8.78 billion and 17% growth. The company also increased its adjusted operating income forecast to $1.44 billion, or 16% margin, up from $1.30 billion and 15% margin previously.
"Our strong second quarter results and improved outlook for the remainder of the year have allowed us to raise our full-year guidance," said Amrita Ahuja, Chief Financial Officer of Block. "We're focused on achieving Rule of 40 in 2026, and our updated guidance for this year puts us on track for Rule of 35, an improvement from our prior guidance."
For the third quarter, Block expects gross profit of $2.22 billion, representing 17% YoY growth, and adjusted operating income of $320 million with a 14% margin.
The company's improved performance and outlook suggest resilience in its integrated ecosystem of financial services solutions across its Square (NYSE:SQ), Cash App, and Afterpay brands.
"SQ posted a solid overall 2Q w/ strong GP growth & continued profit outperformance," TD (TSX:TD) Cowen analysts commented on the report.
"Cash App remains the GP growth leader – sustaining the 20%+ 'need to see' level w/ favorable inflows & monetization and Cash App Pay momentum – while mgmt remains intensely focused on righting the performance in Square Seller."
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