Here's What Key Metrics Tell Us About Block (SQ) Q1 Earnings

Block (SQ) reported $5.96 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 19.4%. EPS of $0.85 for the same period compares to $0.40 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $5.75 billion, representing a surprise of +3.54%. The company delivered an EPS surprise of +37.10%, with the consensus EPS estimate being $0.62.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Block performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Gross Payment Volume (GPV): $50.50 billion versus $54.91 billion estimated by four analysts on average.
  • Revenue- Transaction-based: $1.51 billion versus the six-analyst average estimate of $1.51 billion. The reported number represents a year-over-year change of +6.2%.
  • Revenue- Subscription and services-based: $1.68 billion versus $1.61 billion estimated by five analysts on average. Compared to the year-ago quarter, this number represents a +23.1% change.
  • Revenue- Bitcoin: $2.73 billion versus the five-analyst average estimate of $2.61 billion. The reported number represents a year-over-year change of +26.2%.
  • Revenue- Hardware: $32.50 million compared to the $36.75 million average estimate based on five analysts. The reported number represents a change of -13.2% year over year.
  • Revenue- Corporate and Other- Total: $54.19 million versus the four-analyst average estimate of $62.22 million.
  • Revenue- Square- Total: $1.73 billion versus the four-analyst average estimate of $1.72 billion. The reported number represents a year-over-year change of +34.3%.
  • Revenue- Square- Hardware: $31.83 million versus the three-analyst average estimate of $33.02 million.
  • Revenue- Square- Subscription and services-based: $296.22 million versus $297.20 million estimated by three analysts on average.
  • Revenue- Square- Transaction-based: $1.40 billion compared to the $1.38 billion average estimate based on three analysts.
  • Revenue- Cash App- Bitcoin: $2.73 billion versus $2.60 billion estimated by three analysts on average. Compared to the year-ago quarter, this number represents a +180.4% change.
  • Revenue- Cash App- Transaction-based: $109.22 million versus $122.59 million estimated by three analysts on average.
View all Key Company Metrics for Block here>>>

Shares of Block have returned -16.1% over the past month versus the Zacks S&P 500 composite's -4.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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