📉 Block disappoints investors: earnings and revenue below estimates, shares fall!
Block $SQ, faced a strong market reaction after its Q4 2024 results fell short of analysts' expectations. Revenue, earnings and growth in key segments all fell short of Wall Street forecasts , leading the stock to fall by more than 17 %!

📊 Key financial results for Q4 2024:
Earnings per share: $0.71 (+51% YoY), but below expectations of $0.88

Revenue: $6.03 billion (+4% YoY) but below expectations of $6.29 billion

Gross profit: $2.31 billion (+14%) vs. estimate of $2.33 billion

EBITDA: USD 757 million (vs. estimate of USD 740 million)

Gross payment volume (GPV): USD 61.95 billion (+10%), above estimates of USD 61.4 billion

❌ Issues:
Weaker Cash App growth - slowing app growth had a negative impact on gross profit.

Weak outlook for Q1 2025 - Analysts from Wall Street Disappointed with lower growth expectations.

Fiscal 2025 off to a tough start - growth above 15 % is projected, but the ramp-up will be slower.

🚀 Square and strategies for growth
Square continues to expand its digital payments ecosystem - focusing on entrepreneurs and small merchants to whom it provides a comprehensive payments infrastructure.

Afterpay as a key enabler - The company is investing in the Buy Now, Pay Later (BNPL) segment to drive transaction growth.

New product: Cash App Card with Afterpay - is expected to help increase gross margins.

📢 Analyst Daniel Perlin (RBC Capital):
"Although Block delivered mixed results, we see positive developments in product innovation. The new Cash App Card and strengthened sales channels could support long-term growth."

Square has a strong digital payments ecosystem, giving it a competitive advantage.

Expansion Afterpay a Cash App could deliver growth in the second half of the year.

Innovation in payment technology and improved monetization Cash App may boost margins in the future.

What's your take on this company?