Block Swings to 2Q Loss as Expenses Soar
August 04 2022 - 5:03PM
Dow Jones News
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)
Copyright (c) 2022 Dow Jones & Company, Inc.
Block (NYSE:SQ)
Historical Stock Chart
From Aug 2024 to Sep 2024
Block (NYSE:SQ)
Historical Stock Chart
From Sep 2023 to Sep 2024