Block Inc. upped its profit forecast for the year, but shares were falling in after-hours action Thursday after management indicated a July slowdown on a key metric.
The company also recorded adjusted earnings before interest, taxes, depreciation and amortization of $384 million, ahead of the $297 million that analysts were modeling.Block now anticipates $1.5 billion in full-year adjusted Ebitda along with $25 million in adjusted operating income, whereas it previously forecast $1.36 billion in adjusted Ebitda and an $115 million in adjusted operating loss.
Block also topped expectations on gross profit, seen as a proxy for revenue given that the true top-line figure includes items like bitcoin-trading revenue that carry minimal margin. Gross profit came in at $1.87 billion for the second quarter, up 27% from a year before, while analysts were modeling $1.81 billion.
Ahuja cited strength on users, inflows and monetization within the Cash App business, as the service had 54 million monthly transacting actives in the month of June, up 15% from a year earlier. More from MarketWatch: Upstart may be gearing up for a big beat, but does its stock already reflect that?