Summary: Block, the fintech company led by Jack Dorsey, reported nearly $2 billion in Bitcoin revenue during the third quarter, accounting for almost one-third of its total $6.11 billion haul. The company's gross profit rose 18% year over year, driven by a 24% jump in Cash App and 9% growth in Square. In a Thursday letter to shareholders, Block said that it continues to expand its Bitcoin ecosystem, including the launch of new payment tools and a merchant wallet.
Block Generates Almost One-Third of Revenue from Bitcoin in Q3
Block, the fintech company led by Jack Dorsey, has reported nearly $2 billion in revenue generated from Bitcoin during the third quarter. This significant figure accounts for almost one-third of its total $6.11 billion haul for the period. According to Block's latest filing with the Securities and Exchange Commission (SEC), the company saw a rise in gross profit by 18% year over year.
The key drivers behind this growth were Cash App, with a 24% jump in revenue compared to last year, and Square, which experienced a 9% increase. In its quarterly report, Block highlighted its commitment to expanding its Bitcoin ecosystem. The company has been actively engaged in developing its capabilities surrounding digital assets. This is evident not only through the launch of new payment tools but also through recent initiatives aimed at facilitating direct acceptance of Bitcoin by merchants.
Furthermore, during the quarter, Shareholders were informed that Block's Cash App saw significant growth. The app processed over $26 billion worth of transactions from Bitcoin and other cryptocurrencies. Despite this impressive milestone, the company did not achieve consensus estimates regarding adjusted earnings per share, which came in at $0.54 against forecasts of $0.63.
However, when reviewing the breakdown of revenue streams for Block's third quarter results, it is evident that while certain expectations fell short, the company still generated substantial revenue from its Bitcoin operations during this period. In Q3 2024, bitcoin revenue accounted for around 1/3 of Block’s total $6.11b in revenue, which stood at almost $2 billion dollars.
The growth of Bitcoin's influence on Block's financial metrics indicates a significant shift towards the company's increased focus on digital assets and its ongoing efforts to increase everyday users' ability to incorporate Bitcoin into their transactions, further pushing their commitment as they expand the adoption and integration capabilities within their ecosystem.
Gross Profit Hits $2.66 Billion with 64% Year-Over-Year Increase in Net Income
Despite slight disappointment from missed estimates concerning some financial metrics such as earnings per share and EBITDA growth for Q3 results, Block experienced an overall solid performance financially during the quarter under review, in addition to strong financial statements posted compared to prior periods.
A closer examination of Block's quarterly reports indicates that it managed a gross profit level exceeding $2.66 billion after having achieved 18% year-over-year growth in this area. Its net income reached nearly $461.5 million, which accounted for more than a 64% increase when measuring the same three-month period from a year prior.
With forecasts of another quarter to come forth from Block indicating gross profit levels estimated around $2.75b with annualized growth sitting at about 19%, we see evidence suggesting investors remain well-positioned on long-term trends tied heavily towards digital assets and growth into everyday usage for both Square as an asset itself rather than just a tool along side CashApp services.
Expanded Ecosystem Initiatives Include Payment Tools and Merchant Wallet
Beyond Block's Q3 performance metrics lies ongoing dedication from its leadership to expand the user base through acceptance tools. The company moved aggressively forward in developing and integrating additional solutions aimed at driving direct use case growth between vendors and customers, one of which being newly introduced payment processing systems.
For example during the third quarter it officially unveiled more than ten fully functional options for facilitating real time interaction capabilities now being rolled out directly so merchants could manage these same services in a unified manner from start to finish all with user friendly web or mobile interfaces available either way giving more power back in their hands when choosing who benefits next.
Moreover as early this year its operations drew the notice of regulatory oversight after certain internal compliance gaps arose related particularly regarding financial handling standards tied within current BTC protocol operations which have thus recently led Block settling up forty mill dollar settlement claim by New York Department Financial Services authorities.