{"id":7494,"date":"2024-11-07T22:15:40","date_gmt":"2024-11-07T22:15:40","guid":{"rendered":"https:\/\/finderica.com\/block-stock-declines-after-missing-revenue-estimates-paymentssource\/"},"modified":"2024-11-07T22:15:40","modified_gmt":"2024-11-07T22:15:40","slug":"block-stock-declines-after-missing-revenue-estimates-paymentssource","status":"publish","type":"post","link":"https:\/\/finderica.com\/?p=7494","title":{"rendered":"Block stock declines after missing revenue estimates | PaymentsSource"},"content":{"rendered":"
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This is breaking news. Check back for more updates.<\/i><\/p>\n

Block’s shares were reeling Thursday, falling nearly 10% in after hours trading after reporting third quarter revenue of $5.98 billion, lower than analysts’ projections of $6.24 billion.\u00a0<\/p>\n

The payment company also reported $2.25 billion in gross profit for the quarter ending September 30, up 19% from the prior year. Net income was $283 billion, up from a loss of $88.7 billion the prior year, and earnings per share of $0.88, compared to analysts’ projections of $0.87.\u00a0<\/p>\n

Block’s Cash App transfer app, which supports payments for Block’s consumer and merchant customers, reported $1.31 billion in gross profit, up 21% over the prior year. The company said active monthly users\u00a0 of Cash App’s card users passed 24 million, up 11% from 2023.\u00a0<\/p>\n

Block’s stock was trading at about $68 per share Thursday evening. Last year, Block’s stock increased from about $55 per share to its current level. That followed a decline from about $247 per share in 2021 to as low as $43 per share in October 2023.<\/p>\n

Block reorganized <\/u><\/ps-link>its business to spur growth after a technology slowdown<\/u><\/ps-link> in 2022 and 2023 that impacted most of the payments fintech industry following rapid growth during the Covid-19 pandemic. Block over the past year has cut costs and shed about 1,000 jobs.\u00a0<\/p>\n

The company earlier this year dumped an organizational structure that focused on business lines such as the Cash App transfer service, the business-focused Square, the Tidal music streaming company, the digital asset unit (which is called TBD) and others. <\/p>\n

In its place is a structure that organizes functions such as engineering, product development, sales, customer service, marketing and additional tasks. The change determines reporting structure and project management strategy. <\/p>\n

Dorsey earlier this year named BNPL lender Afterpay co-founder Nick Molnar as sales head. Block has owned Afterpay since 2021, and the business has been a solid performer for Block. The BNPL lender’s gross merchandise revenue, or the value of the business, grew more than 20% over the past year. <\/p>\n

“Since acquiring Afterpay<\/u><\/ps-link>, consumers have spent over $72 billion through the platform,” said Block CEO Jack Dorsey in a press release Thursday. Block’s goal with the reorganization is to increase speed to market with new technology, with a focus on rapid response in emerging trends in artificial intelligence. Analysts had criticized Block’s development speed, saying the company’s traditional product-oriented structure slowed projects. <\/p>\n

Block faces stiff competition from legacy payment companies such as FIS and Fiserv, which sell payment processing and bank technology; and other payment fintechs such as Stripe and PayPal. PayPal is in the midst of its own restructuring, as new CEO Alex Chriss<\/u><\/ps-link> has focused on embedding AI into the company’s checkout technology. Among fintechs, BNPL lender Affirm also reports earnings on Thursday afternoon.\u00a0<\/p>\n<\/div>\n

Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

This is breaking news. Check back for more updates. Block’s shares were reeling Thursday, falling nearly 10% in after hours trading after reporting third quarter revenue of $5.98 billion, lower than analysts’ projections of $6.24 billion.\u00a0 The payment company also reported $2.25 billion in gross profit for the quarter ending September 30, up 19% from<\/p>\n","protected":false},"author":1,"featured_media":7495,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[218],"tags":[1818,2217,2218,1414,250,157,222],"class_list":{"0":"post-7494","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-banking","8":"tag-block","9":"tag-declines","10":"tag-estimates","11":"tag-missing","12":"tag-paymentssource","13":"tag-revenue","14":"tag-stock"},"_links":{"self":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/7494","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=7494"}],"version-history":[{"count":0,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/posts\/7494\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=\/wp\/v2\/media\/7495"}],"wp:attachment":[{"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=7494"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=7494"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/finderica.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=7494"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}