Block’s Q3 Earnings Reveal $2.42 Billion in Bitcoin Revenue, Reflecting 37% Annual Growth

Block Inc. has disclosed an upsurge in third-quarter earnings,

with total net revenue reaching $5.62 billion, signifying a 24% year-over-year increase. Excluding its bitcoin operations, the company’s revenue surged to $3.19 billion, marking a 16% rise from the previous year. The company’s shareholder letter highlights that bitcoin revenue soared to $2.42 billion, underscoring the cryptocurrency’s substantial impact on the company’s financial performance.

Block Aims for ‘Rule of 40’ by 2026 After Q3 Earnings and Cash App User Expansion

Jack Dorsey’s Block, Inc. has released a shareholders’ letter disclosing its Q3 earnings. The letter unveils an enhancement in third-quarter profitability, with Block revising its full-year 2023 forecasts upward for both Adjusted Operating Income and Adjusted EBITDA.

Block’s Q3 Earnings Reveal $2.42 Billion Bitcoin Revenue, Marking 37% Annual Growth

Additionally, the company has reported an increase in Cash App Pay transactions in recent months. By September, the service recorded over two million monthly active users, doubling since June. Notably, bitcoin revenue for Q3 surged to $2.42 billion, reflecting a 37% increase from the previous year.

Moreover, Bitcoin’s gross profit climbed to $45 million, representing a 22% year-over-year gain. The company has initiated a share buyback program, authorizing the repurchase of $1 billion of its shares to counter dilutive effects of share-based compensation. The Block’s Q3 shareholder letter outlines its target:

“We believe we will reach Rule of 40 in 2026, with an initial composition of at least mid-teens gross profit growth and a mid-20% Adjusted Operating Income margin.”

The Block’s Q3 earnings report follows similar disclosures from Coinbase and Microstrategy, both reporting net profits. The Block’s shareholder letter also mentions a cap on staff hiring, with no plans to exceed 12,000 employees until the business has “meaningfully outpaced the growth of the company.”

Furthermore, the Block continues to hold bitcoin (BTC) as an asset on its balance sheet, with disclosed investments of $50 million in Q4 2020 and $170 million in Q1 2021. Despite bitcoin’s classification as an indefinite-lived intangible asset, the Block reported no impairment losses on its bitcoin holdings in Q3 2023, reflecting resilience amid market fluctuations.

What are your thoughts on the Block’s Q3 earnings report? Share your opinions in the comments section below.


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