Block Shares Are Tumbling After Hours: What's Going On?

Block Inc SQ shares are trading lower in Thursday's after-hours session after the company reported fourth-quarter financial results.

What Happened: Block said fourth-quarter revenue increased 14% year-over-year to $4.65 billion, which beat average analyst estimates of $4.6 billion, according to Benzinga Pro. Excluding Bitcoin BTC/USD revenue, revenue in the fourth quarter totaled $2.82 billion, up 33% year-over-year. 

The company reported quarterly earnings of 22 cents per share, which missed consensus estimates of 30 cents per share.

Related Link: Trading Strategies For Block Stock Before And After Q4 Earnings

Gross profits were up 40% year-over-year. Gross payment volume totaled $53.16 billion, up 15% year-over-year. The company said the Square ecosystem continued to be its biggest differentiator. Cash App continued to grow its network, ending the year with 51 million monthly transacting active users.

Block said it ended the fourth quarter with $7.5 billion in available liquidity.

"Looking ahead to 2023 and beyond, we are focused on balancing growth and efficiency and will prioritize speed, agility, and accountability. This framework will ensure we remain customer-led while building a disciplined and durable business for the long term," the company said in a letter to shareholders.

Block sees 2023 adjusted EBITDA of approximately $1.3 billion. 

Block is a global technology company with a focus on financial services. The company owns Square, Cash App, Spiral, TIDAL and TBD. Block will hold a conference call to discuss these results at 5 p.m. ET.

SQ Price Action: Block has a 52-week high of $149 and a 52-week low of $51.34.

The stock was down 2.56% after hours at $72.25, according to Benzinga Pro.

Photo: courtesy of Block.