Overview
- Block shares jumped about 8% in after-hours trading following Thursday's earnings beat and a higher full-year gross profit target of $12.33 billion.
- For Q1, adjusted EPS came in at 85 cents and gross profit rose 27% to $2.91 billion, while a $309 million GAAP net loss reflected a roughly $173 million non-cash Bitcoin remeasurement hit.
- Cash App led results with 38% gross profit growth, helped by lending expansion as consumer loan originations climbed about 82% to $17.6 billion.
- The company is resetting costs after about 4,000 job cuts and large restructuring charges, and it recorded a $240 million accrual related to an unresolved U.S. Department of Justice matter.
- Even as Bitcoin-related revenue fell to about $1.8 billion, Block rolled out proof-of-reserves so users can verify balances, a touchscreen Bitkey wallet, auto-convert of Cash App payments into Bitcoin, and 5% Bitcoin rewards for Square merchants.