Block Soars on Boosted Profit Outlook as Cash App Grows
- Cash App Card hit 22 million monthly active users in September
- Co-founder Dorsey caps firm’s staff at 12,000 to contain costs
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Block Inc.’s shares soared after the payments giant run by Jack Dorsey again boosted its forecast for adjusted profit for the year as customers increasingly turn to its popular Cash App.
The company forecast that adjusted earnings before interest, taxes, depreciation and amortization for 2023 will be in the $1.66 billion to $1.68 billion range, up from previous guidance of $1.5 billion and higher than analysts are estimating. Block also announced a plan to repurchase $1 billion of shares, as it expects free cash flow generation and margin to improve in the coming years, according to a statement Thursday.