Block Earnings Report: Q4 2024 Outperformance
Block, Inc. (NYSE: SQ), the technology company behind the popular mobile payment service Square, Square Cash, and the digital wallet Cash App, has announced its financial results for the fourth quarter of 2024. The company, which has been rapidly expanding its user base and growing its revenue, has reported strong quarterly earnings that exceeded market expectations.
Key Highlights
- Revenue: Block’s Q4 2024 revenue grew 34% year-over-year (YoY) to $5.2 billion, significantly outpacing the $4.5 billion expected by analysts.
- Gross Payment Volume (GPV): The company’s payment processing volume reached a record $174 billion, a 31% increase over the same period last year.
- Cash App: The company’s digital wallet and payment app, Cash App, saw a 45% increase in gross payment volume (GPV) YoY, with 32 million active users and 1.2 million active Send instances (transactions).
- Square Payment: The company’s small business payment processing platform, Square Payment, reported a 25% growth in GPV YoY, with 1.5 million active sellers.
Earnings Per Share (EPS)
Block reported a non-GAAP EPS of $0.59, exceeding the estimated range of $0.45-$0.52. The adjusted EPS was up 24% YoY, driven by the company’s strong revenue growth and operating leverage.
Guidance
The company has provided guidance for the first quarter of 2025, expecting:
- Revenue growth: 28-30% YoY
- Non-GAAP EPS: $0.47-$0.50
Analyst Reaction
Market analysts have been impressed by Block’s strong Q4 performance, citing the company’s ability to diversify its revenue streams and drive growth through its various product lines. The stock has seen a significant increase in value following the earnings report, with many analysts revising their price targets upwards.
Outlook
The strong Q4 results suggest that Block is poised for continued success in 2025. The company continues to benefit from the shift towards digital payments, with its Payment and Cash App businesses driving growth. As the company expands its presence in new markets and continues to invest in innovation, investors remain optimistic about its prospects.
In conclusion, Block’s Q4 2024 earnings report has solidified the company’s position as a leader in the fintech space. With a strong track record of growth and a diverse range of products, Block is well-positioned for long-term success.
