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clogged (NYSE:SQ) Stock Gap up 6.2% In after-hours trading Thursday, the payments and fintech app company raised its full-year 2024 guidance, with first-quarter profit and revenue also beating Wall Street expectations.
Adjusted EBITDA is currently expected to be $2.76B in 2024, compared to Visible alpha consensus with $2.68B and previous view of $2.63B. Adjusted EBITDA margin is now expected to be 31%, compared with previous guidance of 30%.
Gross profit this year is expected to be $8.78B, implying year-over-year growth of 17%, up from the previous target of $8.65B, implying year-over-year growth of 15%. Adjusted operating income is expected to be $1.30B, which would imply growth of 15% from 2023 levels, compared with the previous forecast of $1.15B. Adjusted operating income is expected to be 15%, compared with the previous forecast of 13%.
Block (SQ) calculates the Rule of 40 as gross profit growth plus adjusted operating margin, and now expects it to reach 32% in 2024, compared with its previous target of 29%. Block still plans to implement 40 rules in 2026.
For the second quarter, the Jack Dorsey-founded company expects gross profit of $2.165B-$2.185B, adjusted EBITDA of $6.70M-$6.90M (versus $6.474M Visible Alpha consensus), and adjusted operating income of $3.05M-$3.25 M. The gross profit margin is expected to be 16%-17%, the adjusted EBITDA profit margin is 31%-32%, and the adjusted operating profit margin is 14%-15%.
Bitcoin Vision
Block (SQ) has announced that it will invest 10% of its Bitcoin (BTC-USD) product gross profits each month into the purchase of Bitcoin itself. The company calls its new process a “balance sheet dollar-cost averaging program,” which took effect last month.
Its previous Bitcoin buying strategy included a one-time purchase of Bitcoin (BTC-USD).
“By allocating a portion of our monthly Bitcoin gross profits to Bitcoin investments on a predetermined, recurring cadence, we sidestep the challenge of market timing,” Bullock said in a memo. “We believe this The approach allows us to optimize our long-term investment positions while minimizing the price risk associated with attempting to aggregate less frequent, larger purchases.”
Season 1 Review
Adjusted earnings per share were $0.85, beating analysts’ average estimate of $0.73 and nearly doubling from $0.46 in the previous quarter and $0.43 in the same period last year.
Total payments were $54.4B, trailing the $55.6B Visible Alpha consensus and down from $57.5B in Q4 2023 and up from $51.1B in the same period last year.
Total net revenue was $5.96B versus consensus of $5.82B, up from $5.77B in Q4 2023 and $4.99B in Q1 2023.
Gross profit increased to $2.09B from $2.03B in Q4 2023 and $1.71B in Q1 2023. %year/year.
Adjusted EBITDA was $705.1 million (Visible Alpha consensus of $588.6 million), up from $562 million in the fourth quarter of 2023 and $368.4 million in the first quarter of 2023.
