reported third-quarter revenue on Thursday that trailed Wall Street expectations. The stock initially sold off after hours but erased most of its losses as investors focused more on profitability metrics.Earnings per share:Block finance chief Amrita Ahuja told CNBC that analysts focus more on gross profit than revenue and pointed to the company's earnings growth and outperformance relative to expectations.
of $283.7 million, or 45 cents per share, after losing $88.7 million, or 15 cents a share, a year earlier. Gross payment volume came in at $62.4 billion, missing analysts' estimates of $64.3 billion. However, the company has improved its cost structure. Gross profit for the fourth quarter will increase 14% to $2.31 billion, Block said.
CEO Jack Dorsey devoted his quarterly shareholder letter to explaining the company's lending products, including Square Loans, Afterpay Buy Now Pay Later and Cash App Borrow. He said the company is looking to transform Cash App Cards "into a better alternative to credit cards" when it launches Afterpay on Cash App Card.