Block Inc (NYSE:SQ), led by CEO Jack Dorsey, impressed investors with its robust second-quarter performance, defying a challenging economic climate. The fintech giant reported a substantial rise in net revenue, reaching $5.53 billion in the three months ending June, compared to $4.4 billion a year earlier, easily surpassing Refinitiv’s estimates.
The company’s success was further underscored by a 27% increase in gross profit, which reached $1.87 billion during the quarter. This achievement prompted Block Inc to revise its 2023 earnings before interest, taxes, depreciation, and amortization (EBITDA) outlook, now projecting $1.5 billion, up from the previous forecast of $1.3 billion.
Driving much of the growth, Cash App, the company’s flagship online payment service, recorded a remarkable 37% rise in gross profit, reaching an impressive $968 million. Additionally, Square, Block’s merchant payment services division, reported a notable gross profit of $888 million, marking an 18% increase from the previous year.
As Block (NYSE:SQ) looks to expand its global presence, CEO Jack Dorsey emphasized a cautious approach to cost management, particularly regarding share-based compensation. Dorsey mentioned a deliberate shift in hiring strategies, focusing on essential roles and prioritizing performance management.
On an adjusted basis, Block’s (NYSE:SQ) earnings for the second quarter stood at 39 cents per share, surpassing analysts’ expectations of 36 cents, as reported by Refinitiv IBES data.
The company’s strong Q2 performance and optimistic outlook signal its resilience in the face of economic challenges and its commitment to strategic growth under the guidance of Jack Dorsey.
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Author Faith Yakubu 
