Block, Inc. (NYSE:SQ) shares rose after the company reported its first-quarter financial results on Thursday. Here’s a look at the highlights.
Block reported quarterly sales of $5.957 billion, which beat the analyst consensus estimate of $5.821 billion, representing a 19.38% increase over sales of $4.99 billion from last year.
The company reported adjusted earnings of 85 cents per share, beating the 72 cents per share consensus estimate.
Cash App generated a quarterly gross profit of $1.26 billion, up 25% year over year, and Square generated a gross profit of $820 million, up 19% year over year. The first-quarter gross payment volume was $54.43 billion.
Block announced a strategic investment into Bitcoin (CRYPTO: BTC) following numerous positive developments both within the company and in the broader market.
In April, Block implemented a Bitcoin dollar cost average (DCA) purchase program that will run through 2024. Under the program, Block will invest 10% of its gross profit from Bitcoin products in Bitcoin purchases.
“We also believe in investing in the overall asset of the ecosystem, and holding bitcoin in our treasury. Going forward, each month we will be investing 10% of our gross profit from bitcoin products into bitcoin
purchases. We were one of the first public companies to put bitcoin on our balance sheet: we invested $220 million into bitcoin, and that investment has grown by approximately 160% to $573 million as of the end of the first quarter,” said Jack Dorsey, Block CEO.
Outlook: Block sees second-quarter gross profit from $2.165 billion to $2.185 billion.
Related News: Rivian Automotive Receives $827M Incentive Package: What’s Going On With Rivian Stock?
SQ Price Action: According to Benzinga Pro, Block shares are up 8.15% after-hours at $76.01at the time of publication Thursday.
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This article Block Stock Soars On Q1 Earnings, Strategic Bitcoin Investment: Details originally appeared on Benzinga.com
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