Shares in payments company Block rose by almost 5% during after-hours trading on Thursday after the company reported fourth-quarter financial results that beat Wall Street estimates. The company stated that its customers’ spending remained resilient despite tightening economic conditions.
Block’s revenue for the fourth quarter was $4.65 billion, beating experts’ estimates of $4.57 billion. The company’s gross profit came in at $1.66 billion, thereby beating estimates of $1.63 billion. The only underperforming area was adjusted earnings per share, with the company’s figure of $0.22 per share falling short of expectations of $0.28 per share.
Square, the company’s point-of-sale merchant business, reported a 22% year-on-year rise in its gross profit to $801 million, while the gross profit of the consumer-facing Cash App business skyrocketed by 64% on a year-on-year basis to $848 million, thereby beating Wall Street estimates of $799 million.
“Over the last year, our ecosystem model helped drive resilience as we continued to serve a diverse base of global customers across a wide range of verticals, complementary products, and use cases,” Block stated in a press release. “Looking ahead to 2023 and beyond, we are focused on balancing growth and efficiency and will prioritize speed, agility, and accountability. This framework will ensure we remain customer-led while building a disciplined and durable business for the long term.”