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Mar 31, 2024
Block Inc. Q1 2024 Earnings Report
Block Inc. outperformed gross profit and profitability guidance.
Key Takeaways
In Q1 2024, Block Inc. reported a 22% year-over-year increase in gross profit, reaching $2.09 billion, driven by strong performances in both Cash App and Square ecosystems. Operating income was $250 million, with Adjusted Operating Income at $364 million. Net income attributable to common stockholders was $472 million, with Adjusted EBITDA up 91% year over year to $705 million.
Gross profit grew 22% year over year to $2.09 billion.
Cash App gross profit increased by 25% year over year, driven by inflows per active and monetization rate.
Square gross profit grew 19% year over year, driven by banking products and international markets.
Operating income was $250 million and Adjusted Operating Income was $364 million.
Revenue by Segment
Forward Guidance
Block provided guidance for Q2 2024, expecting gross profit between $2.165 billion and $2.185 billion, with year-over-year growth of 16% to 17%. Adjusted EBITDA is projected to be between $670 million and $690 million, representing a 31% to 32% margin. Adjusted Operating Income is expected to be between $305 million and $325 million, with a 14% to 15% margin.
Positive Outlook
- Gross Profit $2.165B to $2.185B
- YoY Growth 16% to 17%
- Adjusted EBITDA $670M to $690M
- Margin 31% to 32%
- Adjusted Operating Income $305M to $325M
Challenges Ahead
- Share-based compensation expense to remain relatively stable year over year on a dollar basis
- Macroeconomic deterioration could impact results.
- Expenses related to amortization of intangible assets in the second quarter would be approximately $58 million
- Expenses related to amortization of intangible assets in the third quarter would be approximately $53 million
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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