(Square) Shares of Block Inc. rose more than 6% in premarket on Friday after the company said it expects its Cash App to sequentially grow gross profit throughout this year.
The positive outlook happens even as the company reported a gross profit margin of 32.7% in the first quarter of 2022, compared to 19.1% in the prior year. Cash App’s gross profit was reported at $624 million, an increase of 26% from the prior year.
Block still reported a net loss of $204.2 million or $0.38 loss per share, compared to a profit of $39 million or $0.08 per share in the prior year. Without the recent acquisition of Afterpay, Block would have reported a net loss of $114 million.
The company booked a revenue of $3.96 billion in the first quarter, down from $5.06 billion in the prior year and below estimates of $4.14 billion. The fall reflected a decline in Bitcoin revenue in the quarter. The revenue would have increased 44% to $2.23 billion without Bitcoin revenue.
SQ: NYSE is up +6.87% on premarket
