Block's stock soars as company sets big earnings goal, launches buyback program

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‘Really what we expect to see next year is meaningful margin expansion,’ CFO says

Block Inc. set a big target for a 2024 earnings metric that vastly exceeded the consensus view, helping to send its stock shooting nearly 20% higher in Thursday’s extended session.

“Really, what we expect to see next year is meaningful margin expansion as we make progress to ‘Rule of 40,'” Chief Financial Officer Amrita Ahura told MarketWatch, referring to the sum of gross-profit growth and adjusted-operating-income margin. Block expects to hit that target in 2026 but make strides during the next calendar year.

Revenue increased to $5.6 billion from $4.5 billion and came in ahead of the FactSet consensus, which was for $5.4 billion. Chief Executive Jack Dorsey recently took over leadership of the Square seller business, and he outlined his new priorities for the segment, which include a more localized product focus, better use of artificial intelligence and a greater push with the company’s banking products.

 

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Block makes progress on profits and sets big earnings goal, sending stock higher‘Really what we expect to see next year is meaningful margin expansion,’ CFO says
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