Block's Surprise Profit Sends Stocks Soaring

Block's Surprise Profit Sends Stocks Soaring
Block's Surprise Profit Sends Stocks Soaring

Hey FinTech Fanatic!

Block, the financial services company, experienced a significant increase in its stock value, rising up to 14% after revealing unexpectedly high fourth-quarter earnings.

The company, renowned for its Cash App and Square services, reported a revenue of $5.77 billion, surpassing the anticipated $5.70 billion.

This growth reflects a robust performance, particularly in gross profit, which surged 22% to $2.03 billion compared to the previous year, indicating the effectiveness of Block's core operations.

In a strategic move to enhance its financial outlook, Block adjusted its EBITDA expectations to a minimum of $2.63 billion, up from the initially projected $2.40 billion.

The company, led by Jack Dorsey, also highlighted its success in expanding its Cash App user base, reaching 56 million monthly active users in December.

Notably, the Cash App Card alone boasted 23 million monthly actives, showcasing a growth rate double that of the overall monthly active users.

This growth is part of Block's broader strategy to cement its position in the financial services sector by offering comprehensive banking solutions through Cash App. Despite recent operational streamlining, including significant layoffs, the company's financial performance and strategic adjustments suggest a positive outlook for its future endeavors.

Tomorrow morning I'm flying to Los Angeles, and I'll be attending FinTech Meetup in Las Vegas after. If you happen to be around, make sure you request an invite for the go to happy hour of the event on March 4th, organized by my friends at the FR, so we can have the opportunity to meet in person!

Have a great start to the week and I'll be back in your inbox tomorrow!




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๐Ÿ‡ฉ๐Ÿ‡ช European Central Bank posts first annual loss in two decades. The European Central Bank reported an annual loss of 1.3 billion euros ($1.4 billion) for 2023, its first loss since 2004, even as it released 6.6 billion euros in provision for financial risks.


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๐Ÿ‡ง๐Ÿ‡ท Monnet Payment, a Peruvian FinTech specializing in collection and disbursement of funds, is gearing up to expand its operations to Brazil in the second half of 2024. The company, which has already established a presence in Mexico, Colombia, Peru (accounting for 50% of its processed volume), and Argentina, is also exploring the remittance industry.

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๐Ÿ‡ฉ๐Ÿ‡ช Frankfurt wins race to host new EU Anti-Money Laundering agency. Frankfurt was chosen ahead of rivals Brussels, Dublin, Madrid, Paris, Riga, Rome, Vilnius and Vienna in a series of votes at the European Council and European Parliament. More here


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๐Ÿ‡จ๐Ÿ‡ด Arch.Finance, a crypto asset manager from Chile, has announced its expansion into Colombia, in partnership with Koywe and Paloma. This move aims to provide Colombian users with a new and secure way to invest in cryptocurrencies amid the country's growing adoption of and interest in the crypto sector.


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๐Ÿ‡ง๐Ÿ‡ท Banco Master has announced its acquisition of a majority stake in Will Bank, a Brazilian digital bank boasting over 6 million customers and a strong presence in the Northeast of the country. The deal, announced Feb. 22, positions Master as a partner alongside the private equity fund of XP. However, the transaction is subject to approval by Cade and the Central Bank.


๐Ÿ‡ฌ๐Ÿ‡ง Cyrille Salle de Chou recently joined Starling Bank as its Chief Risk Officer (CRO). He spent the last seven years at HSBC in multiple CRO roles; first he was CRO for the European retail bank and wealth management divisions, but spent the bulk of his tenure as CRO of wealth and personal banking for HSBC UK.

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