block on Thursday reported a rise in first quarter revenue as its popular payments platform cash app A metric investors will closely follow growth after US short-seller Hindenburg Research disclosed short positions in the firm in March.
Shares of Block, formerly called Square, were up more than 1 percent in extended trading on Thursday, paring gains after rising more than 4 percent. Its stock was down more than 10 per cent from the beginning of this year before the market closed.
The company posted total net revenue of $4.99 billion (roughly Rs. 40,800 crore) in the quarter ended March 31, up 26 percent from the previous year and beating analysts’ estimates of $4.59 billion (roughly Rs. 37,500 crore), according to Refinitiv data. overtook. ,
The San Francisco-based fintech, which provides merchant payment services and an app that facilitates peer-to-peer payments and lets people trade cryptocurrency, said gross profit rose 32 percent to $1.71 billion in the first quarter. 14,000 crore approximately). ,
Hindenburg, whose reports triggered a loss of more than $100 billion (roughly Rs. 8,17,200 crores) in shares of India’s Adani group companies this year, on the block by allowing fake or bogus accounts to exist on its cash It was accused of exaggerating its user numbers. App Platform. The allegations sent shares in the company down 22 percent.
Reuters could not verify the claims made in the report. Block has denied the allegations and said it would explore legal action against the short seller. Short sellers, such as Hindenburg, typically sell borrowed securities with the aim of buying them back at a lower price.
In a call with analysts, Block CEO jack dorsey Said firm stands by its response to the report.
“We will not deviate from our strategy and our priorities,” he said. “We have a very compelling roadmap ahead of us in each of our ecosystems.”
The block’s revenue growth has slowed over the past few quarters as inflation prompted consumers to postpone big-ticket purchases. In its last earnings report, the payments firm said it was “meaningfully slowing” the pace of hiring this year to control costs.
© Thomson Reuters 2023
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