Block (XYZ) Q3 2024 earnings summary

Executive summary

• Gross profit grew 19% year-over-year to $2.25B in Q3 2024, with both Cash App and Square segments delivering double-digit growth.

• Net income attributable to common stockholders was $284M, reversing a net loss in Q3 2023.

• Adjusted EBITDA rose to $807.5M (36% margin), and Adjusted Operating Income reached $444M (20% margin).

• Cash App Card actives reached 24M, up 11% YoY, and gross profit per active increased 16% to $75.

• Square Loans, Afterpay, and Cash App Borrow delivered strong returns on invested capital with stable loss rates.

Financial highlights

• Q3 2024 total net revenue was $5.98B, up 6% YoY; gross profit was $2.25B (38% margin).

• Cash App gross profit was $1.31B (+21% YoY); Square gross profit was $932M (+16% YoY).

• Net income per diluted share was $0.45; Adjusted EPS was $0.88.

• Adjusted Free Cash Flow for the trailing twelve months was $1.5B, up from $945M a year ago.

• Ended Q3 with $10.7B in available liquidity, including $9.9B in cash and equivalents.

Outlook and guidance

• Q4 2024 guidance: gross profit of $2.31B (+14% YoY), Adjusted EBITDA of $725M (31% margin), Adjusted Operating Income of $355M (15% margin).

• Full-year 2024 guidance: gross profit of $8.89B (+18% YoY), Adjusted EBITDA of $3.0B (34% margin), Adjusted Operating Income of $1.56B (18% margin).

• 2025 outlook: at least 15% gross profit growth, with margin expansion and acceleration in Square GPV growth expected.

• Remain focused on achieving Rule of 40 (gross profit growth + Adjusted Operating Income margin) by 2026.

• Guidance assumes a stable macro environment.