Square-parent Block (SQ) reported first-quarter earnings and revenue that exceeded expectations, causing SQ stock to rise. In the period ended March 31, the company’s earnings on an adjusted basis were 74 cents per share, a whopping 85% increase from the previous year. Analysts had predicted earnings of 72 cents per share. Additionally, Square’s net revenue increased by 19% to $5.96 billion, which included Cash App transactions for bitcoin. Analysts had estimated revenue to be $5.83 billion.

Financial analysts consider gross profit an important metric for SQ stock, and in the first quarter of 2024, gross profit rose by 22% to $2.09 billion, surpassing estimates of $2.02 billion. Cost-cutting measures also contributed to the increase in earnings before interest, taxes, depreciation, and amortization (EBITDA), which came in at $705 million, exceeding estimates of $591 million.

Gross payment volume from the transactions of merchant customers increased by only 9% to $50.5 billion in the first quarter of 2024 compared to estimates of $55.81 billion. For the same period, Square projected EBITDA of $680 million while analysts had forecasted EBITDA of $648 million