© Reuters
Investing.com — Block has lifted its full-year guidance after the financial services group reported better-than-expected fourth-quarter revenue thanks in part to efforts to step up the monetization of its Cash App money transfer service.
Shares in the Block Inc (NYSE:) jumped in premarket trading on Friday.
For 2024, the company said it now expects to post adjusted operating income of at least $1.15B. Adjusted earnings before interest, taxes, amortization, and depreciation (EBITDA) are also projected to be at least $2.63B.
A prior forecast had called for adjusted operating income of $875M and adjusted EBITDA of $2.4B.
“[M]anagement’s focus on true profitability remains clear as the company presented FY24 profitability metrics that were notably above the Street, driven by headcount reductions, incremental overhead cost efficiency, and structural cost benefits,” analysts at Wolfe Research said in a note.
For the three months ended Dec. 31, Block adjusted EPS of $0.45 per share on revenue of $5.77 billion, compared with analysts estimates for adjusted EPS of $0.67 on revenue of $5.71B.
The beat on the top line was driven by performance of its Cash App, which generated $3.91B of revenue and $1.18B of gross profit, up 31% and 25% year over year, respectively. The monetization rate on the Cash App was 1.48%, up 9 basis points year over year and 5 basis points quarter over quarter.
For Q1, the company forecasts adjusted operating income of $225M to $245M and adjusted EBITDA, of $570M to $590M.
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