Summary
- Reported that Block's Q3 results fell short of market expectations and its stock fell nearly 12% in after-hours trading.
- Year-to-date Block's stock has already fallen 18.24%, but Q3 gross profit and operating income increased by 18% and 26%, respectively.
- Reported that Block's Bitcoin mining unit 'Proto' generated its first revenue, and that the crypto business is being ramped up.
Fintech company Block (Block Inc.), led by Jack Dorsey, fell short of market expectations in its third-quarter results, and its stock fell nearly 12% in after-hours trading.
On the 6th (local time), according to Cointelegraph, Block recorded earnings per share (EPS) of $0.54 for the third quarter, 14% lower than analysts' estimate of $0.63. Revenue was $6.11 billion, up 2.3% year-on-year, but missed the market estimate of $6.33 billion.
Accordingly, Block's stock plunged 11.53% after the market close to $70.93. It also closed the regular session down 3.7% at $62.75, and the stock has fallen 18.24% so far this year.
However, some indicators were positive. Block's Q3 gross profit was $2.66 billion, up 18% year-on-year, and annual gross profit guidance was $10.24 billion, expected to increase 15% from last year.
The cash remittance platform 'Cash App' recorded $1.62 billion in profit in Q3, up 24% year-on-year, and the merchant payments service 'Square' segment also rose 9% to $1.018 billion.
Operating income was $409 million, up 26% year-on-year.
Cryptocurrency-related businesses are also being ramped up. Block's chief financial officer (CFO) Amrita Ahuja said on an investor call, "Proto, the bitcoin mining unit, has generated its first revenue," and "monetization has begun through hardware sales such as miners, hashboards, and ASICs."
Son Min
sonmin@bloomingbit.ioHello I’m Son Min, a journalist at BloomingBit
