Benzinga - by Chris Katje, Benzinga Staff Writer.
Fintech Block Inc (NYSE:SQ) reported fourth-quarter financial results after market close Thursday.
Here are the key highlights.
What Happened: Block reported fourth-quarter revenue of $5.77 billion, which was up 24% year-over-year. The revenue total beat a Street consensus estimate of $5.70 billion, according to data from Benzinga Pro.
Block reported adjusted earnings per share of 45 cents, which was shy of a Street consensus estimate of 59 cents per share.
The company had gross profit of $2.03 billion in the fourth quarter.
Revenue for the fourth quarter was $3.25 billion, excluding Bitcoin, which was up 15% year-over-year.
Transaction revenue in the fourth quarter was $1.60 billion, which was up 8% year-over-year. GPV was $57.49 billion in the fourth quarter, which was up 8% year-over-year.
The company reported subscription and services revenue of $1.62 billion for the fourth quarter, which was up 24% year-over-year.
The company ended the fourth quarter with 23 million Cash App card monthly actives, which was up 20% year-over-year.
Full fiscal year revenue was $21.92 billion, which was up 25% year-over-year. Full year revenue excluding Bitcoin was $12.42 billion, which was up 19% year-over-year.
Related Link: Trading Strategies for Block (SQ) Stock Before And After Q4 Earnings
What's Next: The company is guiding for first quarter gross profit of $2.0 billion to $2.02 billion, which would be up 24% year-over-year at the midpoint. First quarter adjusted EBITDA is expected to be in a range of $570 million to $590 million.
Fiscal 2024 guidance for gross profit is $8.65 billion, which would be up 15% year-over-year. The company sees adjusted EBITDA hitting $2.63 billion for the full fiscal year.
"We've done a lot recently to reduce our costs. Now we're going to focus on growth," Block CEO Jack Dorsey said.
The company said it remains focused on achieving the Rule of 40 in 2026, which includes gross profit growth and adjusted operating income margin achieving this level.
"Our primary objective in 2024 is to deliver an improvement from the Rule of 29 we achieved in 2023, on a combined company basis," the company said.
SQ Price Action: Block shares are up 13% to $76.81 in after-hours trading Thursday, versus a 52-week trading range of $38.85 to $83.08.
Read Next: Block Inc Q4 Earnings Preview: Eyes On Rule Of 40, Growth, Profitability And More
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