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The robust performance was largely driven by a 37.5% year-on-year (YoY) growth in Bitcoin revenue, which reached $2.42 billion, up from $1.76 billion the previous year. This surge in Bitcoin revenue contributed to Block’s total net revenue growth of 24% YoY. Bitcoin gross profit also saw an increase, reaching $44 million compared to $36 million the previous year.
In addition to Bitcoin-related earnings, Block’s key product, Cash App, also reported strong growth with revenues increasing by 34% YoY to $3.58 billion. The company’s other payment platform, Square, reported revenues of $1.98 billion.
Block revised its full-year adjusted EBITDA from $1.5 billion to between $1.66 and $1.68 billion and expects full-year operating income to rise from $25 million to between $205 and $225 million. The firm also provided a 2024 adjusted operating income guidance of $875 million and projects a gross profit for 2023 between $7.44 and $7.46 billion.
Following a short-seller attack, Dorsey expressed his gratitude to shareholders in his letter for their trust and promised accountability. He also outlined the firm’s go-to-market strategy and AI technology refocus as part of Block’s future plans.
Despite the earnings beat, accounting rules created a discrepancy of $114 million between the market and book values of Block’s Bitcoin holdings, valued at $216 million. However, no impairment loss was recorded in Q3 2023.
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