Block, a payment company, announced its third-quarter earnings, revealing a 6% year-over-year increase in net revenue to $5.98 billion. This figure fell short of analysts' average estimate of $6.24 billion. However, the company's adjusted earnings per share came in at 88 cents, slightly above the expected 87 cents.
In terms of guidance, Block reiterated its forecast for 2024, projecting annual gross profit to reach at least $8.89 billion, marking an 18% growth. The company has also increased its full-year adjusted EBITDA forecast from $2.9 billion to $3 billion and adjusted operating profit from $1.44 billion to $1.56 billion.
Block disclosed it received a draft consent order from the U.S. Consumer Financial Protection Bureau in August. This draft is associated with an investigation into how its Cash App handles customer complaints and disputes. Additionally, Block is engaging with various remittance licensing regulators to discuss its compliance strategy, including its anti-money laundering program.
