Block Shares Up 7.9% on Q1 Earnings Beat

Block Inc., the payments company led by Jack Dorsey, saw its shares rise 7.9 percent in after-hours trading Thursday after reporting first-quarter earnings that exceeded analyst expectations, despite a net loss of $309 million, its first in three years.

The company posted adjusted earnings of 85 cents per share for the quarter ended March 31, surpassing the Zacks consensus estimate of 68 cents by 25 percent. Gross profit climbed 27 percent year-over-year to $2.9 billion, driven by growth in Cash App and Square. Cash App's gross profit increased 38 percent to $1.91 billion, fueled by expansions in lending, banking, and commerce, with consumer lending originations jumping 82 percent to $17.6 billion. Total net revenue reached $6.06 billion.

The net loss stemmed primarily from a $172.8 million non-cash remeasurement loss on Block's 8,883 bitcoin held in its corporate treasury, reflecting a 23.8 percent drop in bitcoin's price during the period. Bitcoin-related revenue from Cash App and other products fell to $1.8 billion from $2.33 billion a year earlier, which Block attributed to shifting trading dynamics and a deliberate reduction in fees on certain Cash App bitcoin transactions....