There are some performers among ASX listed companies, which have raced ahead of the benchmark index. One of such potential growth companies having offices globally is
Block Inc. (ASX: SQ2)
Block Inc. (ASX: SQ2) reported strong growth for the third quarter of 2024, with gross profit rising 19% year-over-year to $2.2 billion. A major driver of this growth was Cash App, which generated $1.3 billion in gross profit, a 21% increase compared to the same period in 2023. The company’s performance was bolstered by solid demand for its financial services products, including Cash App’s suite of services. Operating income for the quarter was $323.0 million, a significant improvement from an operating loss of $9.9 million in Q3 2023. Adjusted Operating Income also saw a sharp rise, reaching $443.5 million compared to $89.7 million in the previous year. Additionally, net income attributable to common stockholders stood at $283.8 million, a reversal from the net loss of $88.7 million reported in Q3 2023. Adjusted EBITDA for the quarter was $807.5 million, up from $477.5 million in the prior year, reflecting continued operational strength.
Block’s focus on cost discipline and efficiency has played a crucial role in its improved financial performance. Throughout 2023, the company worked on refining its organizational structure and cutting unnecessary costs. These efforts have continued into 2024, as Block remains committed to driving disciplined growth. In November 2023, the company capped its workforce at 12,000 employees, a target it has successfully maintained through performance management and centralization of teams. While restructuring costs may persist in the short term, the company expects to continue realizing the benefits of these efficiency initiatives in the future.
Total revenue for the three- and nine-months ending September 30, 2024, increased by $358.3 million (6%) and $1.9 billion (12%), respectively, compared to the same periods in 2023. Bitcoin revenue grew by $5.0 million and $793.3 million for the three and nine months, respectively, but the increase was largely driven by higher market prices for bitcoin, as opposed to an increase in the volume of bitcoin sold. Excluding bitcoin revenue, Block saw a stronger growth in core revenue streams. Transaction-based revenue, which grew 3% and 5% in the quarter and year-to-date periods, was driven by an increase in gross payment volume (GPV) across Square’s platform. Subscription and services-based revenue also showed strong growth, particularly from Cash App’s financial products, increasing by 20% for the quarter and 22% year-to-date.
Block is among the best growth stocks to buy now, having ended Q3 2024 with $10.7 billion in available liquidity, including $9.9 billion in cash, cash equivalents, and marketable debt securities. The company’s liquidity was further bolstered by the issuance of $2.0 billion in senior unsecured notes due in 2032. Additionally, Block has $1.5 billion in warehouse funding facilities to support its Buy Now, Pay Later (BNPL) platform, with $965.8 million drawn as of September 30, 2024.
Source: Company’s Report
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