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Sep 30, 2024
Block Inc. Q3 2024 Earnings Report
Block Inc. demonstrated growth in gross profit and improved profitability.
Key Takeaways
In Q3 2024, Block Inc. reported a 19% year-over-year increase in gross profit, reaching $2.25 billion. The company also saw improvements in operating income and net income. Cash App and Square both contributed to this growth, with Cash App showing a 21% increase in gross profit and Square a 16% increase.
Gross profit grew 19% year-over-year to $2.25 billion.
Cash App gross profit increased by 21% year-over-year, driven by Cash App Card, Cash App Borrow, and BNPL.
Square gross profit grew 16% year-over-year, driven by banking products, software, and integrated payments.
Operating income was $323 million, and Adjusted Operating Income was $444 million.
Block Inc.
Block Inc.
Block Inc. Revenue by Segment
Revenue by Segment
Transaction-Based Revenue
CapyFin.comSubscriptions & Services Revenue
CapyFin.comHardware Revenue
CapyFin.comBitcoin Revenue
CapyFin.comCash App Revenue
CapyFin.com Forward Guidance
Block provided Q4 2024 outlook, expecting gross profit of $2.31 billion, representing 14% year-over-year growth. Adjusted EBITDA is expected to be $725 million with a 31% margin, and Adjusted Operating Income is projected to be $355 million with a 15% margin. For the full year 2024, Block expects gross profit of $8.89 billion and Adjusted Operating Income of $1.56 billion.
Positive Outlook
- Expect Square U.S. and Global GPV growth to improve modestly in Q4 compared to Q3.
- For Adjusted Operating Income, we expect at least $1.56 billion, or 18% margin for the full year.
- Expect to reach our Rule of 40 target in 2026.
- Expect strong gross profit growth in 2025 of at least 15%, consistent with that target, driven by broad momentum across Block.
- Assuming the macro environment remains stable, we expect Square U.S. and Global GPV year over year growth to accelerate in 2025 compared to 2024.
Challenges Ahead
- Revised timing expectation for certain gross profit benefits that we previously expected to land in the fourth quarter, and now expect to land in 2025.
- Expect these items to impact growth by 3 percentage points in the fourth quarter
- On profitability, we’re committed to expanding margins on an Adjusted Operating Income basis next year, although we expect the pace of expansion to be less than this past year as we invest in growth opportunities with attractive returns, particularly around go-to-market.
- Scaling back our investment in TIDAL and winding down TBD.
- Our outlook does not assume any additional macroeconomic deterioration, which could impact results.
Revenue & Expenses
Visualization of income flow from segment revenue to net income