BlockSQ stock surged by nearly 14% in pre-market trading on Friday following the company’s Q4 2023 earnings report, showcasing a significant increase in gross profit and robust growth in Square and Cash App revenue.
Driving Forces Behind the Surge
The company reported a fourth-quarter gross profit of $2.03 billion, marking a 22% year-over-year rise, with the adjusted EBITDA forecast raised to a minimum of $2.63 billion from $2.40 billion.
Block concluded 2023 with 56 million monthly transacting actives for Cash App. The Cash App business reported a gross profit of $1.18 billion, reflecting a 25% year-over-year increase.
Shares were last up 13.64% at $77.23 before the opening bell on Friday, according to data from Benzinga Pro.
CEO’s Forward-Thinking Strategy
“We believe this strategy will enable us to build the largest network in the long run, with a highly engaged customer base using Cash App as their primary banking solution,” Jack Dorsey, the CEO of Block, said in a note to shareholders.
The surge in Block’s stock follows a series of strategic moves by the company, including major layoffs in January, affecting over a thousand employees across various sectors. The layoffs were aimed at boosting efficiency at the financial firm.
Despite these challenges, Block’s earnings indicate a strong recovery and a promising future. The company’s focus on the Cash App business and its potential as a primary banking solution for customers could be a key factor in its future growth.
