Block reports revenue miss but a slight beat on earnings

Block shares tumbled 11% in extended trading on Thursday after the company reported third-quarter revenue that trailed Wall Street expectations.

Here is how the company did, compared to analysts’ consensus estimates from LSEG.

• Earnings per share: 88 cents adjusted vs. 87 cents expected
• Revenue: $5.98 billion vs. $6.24 billion expected

Block, formerly known as Square, posted $2.25 billion in gross profit, up 19% from a year ago. Analysts tend to focus on gross profit as a more accurate measurement of the company’s core transactional businesses.

The company reported net income of $283.7 million, or 45 cents per share, after losing $88.7 million, or 15 cents a share, a year earlier.

The Cash App business, the company’s popular mobile payment platform and a significant contributor to overall profitability, reported $1.31 billion in gross profit, a 21% year-over-year jump. Block, run by Twitter co-founder Jack Dorsey, said its Cash App Card monthly active users increased 11% year over year to more than 24 million.

The company said gross profit for the fourth quarter will increase 14% to $2.31 billion.

Block’s third-quarter earnings call starts at 5 P.M. Eastern time.