Block Beats Q1 Earnings Estimates, Tops Revenue Forecasts, Shares Jump

Block Inc SQ reported first-quarter financial results after the bell. Here's a look at the highlights from the quarter, as well as what appears to be driving shares higher.

What Happened: Block said first-quarter revenue increased 26% year-over-year to $4.99 billion. The company's top-line results beat average analyst estimates of $4.59 billion, according to Benzinga Pro. Excluding Bitcoin BTC/USD revenue, revenue increased 27% year-over-year.

The payment services company reported quarterly earnings of 40 cents per share, which beat consensus estimates of 34 cents per share. Shares appear to be reacting positively to Block's top- and bottom-line beats.

Transaction-based revenue was up 15% year-over-year and subscription and services-based revenue was up 42%. 

"Though we’ve launched features leveraging machine learning and generative AI in prior years, in 2023, we’ve doubled down and have incorporated this as a strategic priority for all Square product teams," the company said in a letter to shareholders. 

Block ended the quarter with $7.6 billion in available liquidity. The company had $7 billion in cash, equivalents and investments in marketable debt securities.

Management will hold a conference call to discuss these results at 5 p.m. ET.

SQ Price Action: Block has a 52-week range of $51.34-$107.98.

Block shares closed Thursday up 1.89% and were up another 4.07% after hours at $62.90 at the time of writing, according to Benzinga Pro.

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Photo: courtesy of Block.