© Reuters. Block Inc logo is seen displayed in this illustration taken, April 10, 2023. REUTERS/Dado Ruvic/Illustration
By Nupur Anand
NEW YORK (Reuters) – Block Inc reported a rise in second-quarter revenue on Thursday as payment volumes at the fintech giant led by Jack Dorsey held up against a tough economic backdrop.
The company reported net revenue of $5.53 billion in the three months ended June, compared with $4.4 billion a year ago, beating Refinitiv estimates.
The fintech, which offers merchant payment services and an app that lets people trade cryptocurrency, said gross profit in the quarter rose 27% to come in at $1.87 billion.
It also revised its earnings before interest, taxes, depreciation and amortization outlook for 2023 to $1.5 billion up from an earlier forecast of $1.3 billion.
Cash App, the company’s mainstay online payments service, increased gross profit by 37% to $968 million, while its Square business reported gross profit of $888 million, up 18% from last year.
Block Chairman Jack Dorsey said the company remains focused on expanding its international presence but is still looking to rein in costs, including examining share-based compensation.
“This has led us to pull back on our pace of hiring to be more targeted in hiring for critical roles and to focus more on performance management,” Dorsey said on an earnings call.
On an adjusted basis, Block earned 39 cents in the second-quarter, beating analysts’ estimates of 36 cents, according to Refinitiv IBES data.
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