Key Insights from Block (SQ) Q3 Earnings Report

Block (SQ) has announced its financial results for the quarter ending September 2024, showing a revenue of $5.98 billion. This figure indicates a year-over-year growth of 6.4%. Additionally, the earnings per share (EPS) stood at $0.88, a notable increase from $0.55 in the same quarter last year.

However, the reported revenue was slightly below the Wall Street expectations, coming in -3.09% under the Zacks Consensus Estimate of $6.17 billion. While the consensus EPS estimate was also set at $0.88, there was no surprise in the earnings per share performance.

Investors often focus on headline figures like revenue and earnings but examining key operational metrics can provide greater insights into the underlying performance of a company. Comparing these metrics against both historical numbers and Wall Street estimates can help investors gauge potential future stock performance.

Below are the key operational metrics for Block as reported for the latest quarter:

• Gross Payment Volume (GPV): $62.49 billion against the average analyst estimate of $63.58 billion.
• Revenue from Hardware: $36.84 million compared to the average estimate of $39.24 million, marking a -13% year-over-year decline.
• Revenue from Subscription and Services: $1.80 billion, matching the average estimate from six analysts, and reflecting a year-over-year increase of +20.4%.
• Transaction-Based Revenue: $1.71 billion versus an expected $1.75 billion, indicating a +3.2% increase from the previous year.
• Bitcoin Revenue: $2.43 billion, falling short of the $2.61 billion estimate from analysts, but showing a slight +0.2% rise year-over-year.
• Total Revenue from Square: $2 billion, slightly above the $2.01 billion average estimate, with a year-over-year gain of +1%.
• Square Hardware Revenue: $36.73 million compared to $38.78 million expected, which represents a -13.3% fall from last year.
• Total Revenue from Corporate and Others: $44.49 million, below the estimate of $50.60 million, marked by an -11.3% decrease year over year.
• Square Subscription and Services Revenue: $322.58 million against an expected $324.59 million, showing a -19.8% year-over-year decline.
• Square Transaction-Based Revenue: $1.64 billion compared to an expectation of $1.65 billion, an increase of +6.8% from the previous year.
• Cash App Bitcoin Revenue: $2.43 billion, lower than the $2.66 billion estimate, and reflecting a +0.2% change from last year.
• Cash App Transaction-Based Revenue: $70 million compared to the average estimate of $95.68 million, which is a -42.1% reduction year-over-year.

For a complete overview of the key metrics for Block, investors can explore further.

In terms of stock market performance, shares of Block have risen by +13.7% over the last month, while the Zacks S&P 500 composite has increased by +3.2%. Currently, Block holds a Zacks Rank of #3 (Hold), suggesting that it may perform in line with market trends in the near future.

Block, Earnings, Revenue