Block shares jump on better-than-expected first-quarter results

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Block reported first-quarter earnings after the bell Thursday that exceeded analysts' estimates. The stock rose about 10% in extended trading. Here's how the company did, compared with analysts' consensus estimates from LSEG. Earnings per share: 85 cents adjusted vs. 72 cents expected 85 cents adjusted vs. 72 cents expected Revenue: $5.96 billion vs. $5.82 billion expected Block, formerly known as Square, posted $2.09 billion in gross profit, up 22% from a year ago. Analysts tend to focus on gross profit as a more accurate measurement of the company's core transactional businesses. The company reported net income of $472 million, or 74 cents per share, more than quadruple the net income of $98.3 million, or 16 cents per share, a year earlier. The company raised its adjusted EBITDA forecast for the second quarter to $690 million from $670 million. The Cash App business, which is the company's popular mobile payment platform, reported $1.26 billion in gross profit, a 25% year-over-year jump. Block, run by Twitter co-founder Jack Dorsey, said its Cash App Card monthly active users increased to 24 million in March. Block ended the year with 57 million monthly transacting actives for Cash App in March, up 6% year over year. Inflows per transacting active were $1,255, up 11% year over year. Block is also more focused on integrating Afterpay, the buy now, pay later company it bought for $29 billion in 2021. Afterpay struggled following the deal, posting big losses. Block has slimmed down operations in recent months. In January, Dorsey reportedly said in a note to staffers that the company had laid off a "large number" of workers. This followed a round of layoffs in December. Chief Financial Officer Amrita Ahuja said in a call with CNBC that the company is raising its outlook for the year to reflect its strong performance in the first quarter. Dorsey's note to shareholders began by directly addressing a question that he said he often fields: "Why the hell are you all spending so much time on bitcoin?" "Less than 3% of company resources are dedicated to bitcoin-related projects," Dorsey wrote. "But why spend time on bitcoin at all? We believe the world needs an open protocol for money, one that's not owned or controlled by any single entity." He said bitcoin will ultimately help Block "serve more people around the world faster." He said Block will be investing 10% of its gross profit from bitcoin products into purchases of bitcoin for investment. "We were one of the first public companies to put bitcoin on our balance sheet," he wrote. The $220 million the company invested in bitcoin has grown 160% to $573 million as of the end of the first quarter, according to Dorsey.