The earnings call presented a strong financial performance with significant growth in gross profit, profitability, and cash flow. The company has a positive outlook for 2025, focusing on product innovations and strategic investments. However, there are some concerns regarding delayed benefits and regulatory challenges, and moderated user growth for Cash App.

Company Guidance

During the Q3 2024 earnings call, Block, Inc. provided several key metrics and guidance for the upcoming periods. Gross profit reached $2.25 billion, reflecting a 19% year-over-year increase, with Square and Cash App contributing growth of 16% and 21%, respectively. The company reported an adjusted free cash flow of $1.5 billion for the 12 months ending in September, compared to $945 million in the prior period. For Q4 2024, Block anticipates a gross profit of $2.31 billion, marking a 14% year-over-year growth. Additionally, the company expects modest improvement in Square's GPV growth and continuing momentum in Cash App's gross profit. The full-year 2024 guidance implies a Rule of 36, a notable improvement from the previous year's Rule of 30. Looking ahead to 2025, Block aims for at least 15% gross profit growth, aligning with its target to achieve a Rule of 40 by 2026. The company's strategic focus includes expanding sales and marketing efforts, enhancing product offerings, and leveraging partnerships to drive growth across its ecosystem.

Strong Gross Profit Growth

Gross profit was $2.25 billion, up 19% year-over-year, with Square growing at 16% and Cash App at 21%.

Record Profitability

The company achieved its highest quarterly profitability ever for both adjusted operating income and adjusted EBITDA.

Increased Free Cash Flow

Adjusted free cash flow was $1.5 billion for the 12 months ending in September, compared to $945 million in the prior 12 months.

Robust GPV Trends

Improved GPV trends with global GPV showing double-digit growth and U.S. GPV growth improving month over month since July.

Positive Outlook for 2025

Expectations for strong gross profit growth in 2025 of at least 15%, driven by broad momentum across the company.

Successful Product Innovations

Launched several new products and improvements including Square's order platform, enhanced Square for Restaurants, and a single app experience.

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Block (SQ) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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SQ Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Feb 20, 2025	2024 (Q4)	0.86 / -	0.45	―	―	―
Nov 07, 2024	2024 (Q3)	0.88 / 0.88	0.55	60.00% (+0.33)
Aug 01, 2024	2024 (Q2)	0.83 / 0.93	0.39	138.46% (+0.54)
May 02, 2024	2024 (Q1)	0.72 / 0.85	0.4	112.50% (+0.45)
Feb 22, 2024	2023 (Q4)	0.58 / 0.45	0.22	104.55% (+0.23)
Nov 02, 2023	2023 (Q3)	0.47 / 0.55	0.42	30.95% (+0.13)	―
Aug 03, 2023	2023 (Q2)	0.36 / 0.39	0.18	116.67% (+0.21)	―
May 04, 2023	2023 (Q1)	0.35 / 0.40	0.18	122.22% (+0.22)	―
Feb 23, 2023	2022 (Q4)	0.30 / 0.22	0.27	-18.52% (-0.05)	―
Nov 03, 2022	2022 (Q3)	0.23 / 0.42	0.37	13.51% (+0.05)	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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SQ Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 07, 2024	$75.27	$74.56	-0.94%
Aug 01, 2024	$59.90	$60.38	+0.80%
May 02, 2024	$70.30	$69.47	-1.18%
Feb 22, 2024	$67.96	$78.92	+16.13%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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