Block beats expectations as Cash App growth lifts profit outlook

Block, the company led by Jack Dorsey, had a strong quarter. On Tuesday it reported third-quarter revenue of $6.7 billion, up 10% from a year ago and above what analysts expected. It also raised its forecast for gross profit for the full year. Shares rose more than 5% in after-hours trading.

The Cash App number

The standout figure was Cash App. Its gross profit climbed 27% to $2.07 billion. Gross profit is what a business keeps from sales after paying the direct costs of providing its service. A faster rise in gross profit than in revenue suggests the company is earning more from each dollar that flows through its products.

Block's stock trades under the ticker XYZ. The after-hours jump means investors liked the report, though prices can shift again once regular trading opens.

Who it affects

People who use Cash App, or businesses that take card payments through Block, are customers of a company that is growing and making more money from its users. That is generally a sign of a healthy service. It does not by itself change fees, features or prices.

What is not known yet

The material available does not give the new full-year gross profit figure, the reasons behind Cash App's growth, or details on other parts of the business. It also does not say how the stock performed once regular trading resumed. Those details should come with Block's full earnings release and the company's commentary on the results.