Block Inc. Shares Surge on Better-Than-Expected Q3 Results and Raised Full-Year Guidance, Bitcoin Revenue Grows by 37.5%

Block Inc.'s 34% growth in Cash App revenue, company-wide drops in net loss, and ambitious plans for future profitability led by CEO Jack Dorsey fuel stock leap and investor optimism.

Block Inc.'s shares surged by 11% due to better-than-expected Q3 results, and it raised its full-year guidance, attributing strong performance to the growth of its Cash App which reported 2 million active users, doubling since June.
The company's Bitcoin revenue grew by 37.5% to $2.42 billion from the previous year, also contributing to the exceptional performance.
CEO Jack Dorsey led an internal overhaul and set new growth priorities, which include an emphasis on expanding customers' use of Block's banking services, streamlining customer-onboarding processes with AI and focusing on the unique needs of Square sellers in different markets.
The company announced an ambitious plan for adjusted operating income in 2024 at $875 million, indicating a shift towards profitability. Concurrently, a stock repurchase initiative worth $1 billion was unveiled to counter dilution from share-based employee compensation.
Despite significant gains from the earnings report, the overall performance of Block Inc. shares has seen a 25% decline in 2023, suggesting ongoing market challenges.