By Denny Jacob

 

Block Inc. swung to a loss as higher expenses climbed during the second quarter.

The financial services company reported a loss of 36 cents a share for the three months ended June 30 compared to 40 cents a share a year earlier. Adjusted earnings were 18 cents a share, above analysts' estimates of 16 cents.

Revenue declined to $4.40 billion from $4.68 billion. Analysts polled by FactSet expected $4.33 billion.

Transaction-based revenue rose 20% from a year earlier to $1.48 billion in the second quarter. Subscription and services-based revenue rose 60% year-over-year to $1.09 billion.

Block said operating expenses rose 66% from the year-ago period to $1.68 billion, including $39 million of amortization of customer and other acquired assets primarily related to its acquisition of Afterpay. Product development expenses were $525 million in the quarter, up 62% from a year earlier, due to headcount and personnel costs related to certain teams as well as product development expenses related to its buy-now-pay-later platform.

 

Write to Denny Jacob at denny.jacob@wsj.com

 

(END) Dow Jones Newswires

August 04, 2022 16:48 ET (20:48 GMT)

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