Jack Dorsey's Block beats analyst estimates for Q1, shares surge 10 pc
Jack Dorsey's payments company Block, formally known as Square, beat operating earnings expectations by nearly $60 million.
Block Inc., formerly known as Square, reported its 2022 Q1 earnings on Thursday, beating operating earnings expectations by $60 million. Led by Twitter Co-founder Jack Dorsey, the company saw share prices rise 10 percent on the back of the earnings announcement.
The San Francisco-based digital payments company reported $195 million in operating earnings (adjusted EBITDA), beating analysts' estimates of $136 million, according to IBES data from Refinitiv.
This margin was able to quell fears that might have arisen because the company had missed out on adjusted profits targets.
In the first three months of 2022, the company saw its revenue fall 22 percent to $3.96 billion, which led to an adjusted profit of 18 cents per share, below analysts' expectation of 21 cents per share.
This can be partially attributed to the fall in Block's Bitcoin revenue streams due to a drop in interest from retail traders as the cryptocurrency's price has retreated after a bull run in 2021. Overall, Block's Bitcoin revenue halved to $1.73 billion.
Earlier this year, Block and other crypto mining entities promised to reveal more information about their operations to the public. Under these plans, Block plans to reveal real-time information on Bitcoin mining using energy from a tie-up with Tesla's solar energy production facilities in Texas, USA.
Edited by Suman Singh