Block Inc (SQ.N) disclosed an increase in revenue for the second quarter, defying the challenges posed by the economic conditions. The fintech company, led by Jack Dorsey, reported a net revenue of $5.53 billion in the three months ending June, outperforming Refinitiv estimates and showing growth from $4.4 billion in the same period last year. The gross profit for the quarter surged by 27% to reach $1.87 billion.
In response to its strong performance, Block revised its earnings before interest, taxes, depreciation, and amortization outlook for 2023 to $1.5 billion, an upgrade from its previous forecast of $1.3 billion. The company’s Cash App, a primary online payments service, demonstrated remarkable growth, with a 37% increase in gross profit amounting to $968 million. Similarly, the Square business reported a gross profit of $888 million, marking an 18% rise compared to the previous year.
Jack Dorsey, the Chairman of Block, emphasized the company’s commitment to expanding its international presence while also focusing on cost management, including a review of share-based compensation. Consequently, Block has adjusted its hiring strategy to be more selective, targeting critical roles, and prioritizing performance management.
On an adjusted basis, Block exceeded expectations, earning 39 cents per share in the second quarter, surpassing analysts’ estimates of 36 cents according to Refinitiv IBES data.