Block Inc.’s Q3 Earnings Surge by 24% with Bitcoin’s Impact on the Rise
Block Inc. reported a significant boost in its third-quarter earnings, witnessing a 24% year-over-year increase, as the total net revenue surged to $5.62 billion.
When excluding its bitcoin operations, the company’s revenue also showed strong growth, reaching $3.19 billion, a 16% rise from the previous year. The shareholder letter revealed that bitcoin revenue specifically reached $2.42 billion, emphasizing the cryptocurrency’s substantial impact on the company’s profits. Jack Dorsey’s Block, Inc. aims to achieve the ‘Rule of 40’ by 2026, with mid-teens gross profit growth and a mid-20% Adjusted Operating Income margin.
Additionally, the company reported a doubling of Cash App Pay transactions and substantial gains in bitcoin-related profits for Q3. The firm also announced plans to buy back $1 billion of its shares and revealed a cap on staff hiring, capping it at 12,000 employees, awaiting significant business growth. Despite holding bitcoin as an indefinite-lived intangible asset, Block Inc. reported no impairment losses on its bitcoin holdings for Q3, demonstrating the cryptocurrency’s resilience.
Clever Robot News Desk 6th November 2023
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