Stock prices surge following Bitcoin-fueled growth in Q3 of fiscal year 23

Block, the payment service provider behind Square and Cash App, has announced its Q3 2023 financial results, revealing a robust performance across its business segments. The company's share price surged by around 19% in the immediate wake of the earnings announcement.

Block reported total net revenue of $5.6 billion in Q3 2023, marking a 24% increase year-over-year. This growth was underpinned by several key factors, including a 30% increase in the number of new Cash App users, a 20% increase in the number of new Square users, and a 40% increase in the number of Cash App monthly active users.

The growth in user base was further complemented by a 40% increase in the number of Cash App transactions and a 25% increase in total payment volume on the platform. Block's Bitcoin and other crypto-related products also contributed to the total net revenue growth.

The strong performance in the Cash App and Square segments fueled a record EBITDA of $477 million in Q3 2023, a significant increase from the $367 million reported in the same quarter last year. Gross profit growth across Square and Cash App further bolstered this impressive figure.

For the upcoming year, Block expects adjusted EBITDA to rise to $2.4 billion and adjusted operating income to significantly increase at $875m. The company also announced an increase in its FY 2023 guidance for total net revenue, now expecting a range of $23.4 billion to $23.6 billion.

The adjusted EBITDA margin increased to 8.5% in Q3 2023, from 7.2% in Q3 2022. The number of Square active sellers also grew by 25%, reflecting the expanding reach of the company's services.

Despite the recent surge, Block's share price is still significantly down from where it was in 2021/2022. As the company continues to innovate and expand its offerings, investors will be watching closely to see if this upward trend continues.

Founded by Jack Dorsey in 2009, Block (formerly Square Inc.) has become a leading name in the digital payments industry. With its focus on providing innovative and user-friendly financial services, the company is well-positioned to continue its growth trajectory.

In conclusion, Block's Q3 2023 results show a strong performance across its business segments, with impressive growth in user base, transactions, and revenue. As the company looks to the future, expectations are high for continued success in the digital payments industry.