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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.
Revenue by Segment
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
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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