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A Square payment device at a store in New York.
Yuki Iwamura/Bloomberg
Block
raised its financial guidance, but shares of the payments company fell, adding to an earlier loss that followed
PayPal
‘s earnings report.
The company (ticker:
SQ
), which operates the Square and Cash App payments systems, raised its 2023 outlook for adjusted earnings before interest, taxes, depreciation, and amortization to $1.5 billion from $1.36 billion. Its outlook for adjusted operating income flipped to $25 million, from prior expectations of a loss of $115 million.
Shares briefly jumped more than 5% but were down by 3.8% around 4:45 p.m. Eastern. Block stock had already fallen 1.3% in Thursday trading as investors reacted to PayPal’s profit report, which showed a decline in margins among other factors.
Block (ticker: SQ) reported a net loss of $123 million on total revenue of $5.53 billion. Non-GAAP earnings per share were 39 cents a share. Analysts polled by FactSet were forecasting non-GAAP earnings of 36 cents a share and sales of $5.1 billion. Revenue was $3.14 billion, excluding revenue from Bitcoin.
Gross profit from the Square ecosystem hit $888 million, up 18% year over year, while the figure for the Cash App soared 37% to $968 million. Gross payment volume rose 12% to $59.01 billion.
Write to Connor Smith at connor.smith@barrons.com