Jack Dorsey’s Block reported upbeat Q1 earnings on May 4, with revenue rising 8.58% despite Hindenburg’s false claims. The short seller accused the San Francisco-based fintech firm of overstating its user count of the Cash App platform by allowing duplicate or fake users to exist. This caused a drop of 22% in Block (NYSE: SQ) shares. The company denied the allegation and would be exploring legal options against Hindenburg.
At press time, Block (NYSE: SQ) was trading at $59.25 with a drop of 1.95%; previous close and open were at $60.43 and 60.64, respectively. The market cap was reported to be $35.84 Billion. They reported earnings on May 4, 2023, with an estimated revenue of $4.596 Billion. Still beating expectations, it was said to be $4.99 Billion, with a surprise of $394.129 Million and a gain of 8.58%. This number outperforms the previous year by 26%.
The 52-week change was with a drop of 29.35%, and as per March 2023 data, operating expenses grew 19.50% to $1.74 Billion; net income hiked by 91.75% but is still negative $16.84 Million. The net profit margin increased by 93.41% to negative $0.34. The earnings per share jumped by 122.22% to $0.40, and EBITDA gained 196.24% to $87.00 Million.
The growth can be attributed to its peer-to-peer transaction Cash App, which offers merchant payments and lets users trade in crypto. It generated a gross profit of $1.71 Billion in Q1 2023, which is a hike of 32%. Also, a...
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