2024-02-25 09:25:56 ET
Summary
- Block reported better than expected revenues for Q4, but the Fintech missed on earnings.
- The Cash App segment continues to drive growth, with gross profits increasing by 22% Y/Y in Q4.
- Block has a strong outlook for FY 2024, with a projected 47% jump in adjusted EBITDA and a 30% adjusted EBITDA margin.
- Shares have a 20X P/E which is reasonable considering the prospects for growth.
Block ( SQ ) reported better than expected earnings for its fourth fiscal quarter on Thursday which were driven by continual growth momentum in the Cash App ecosystem and the Fintech submitted a strong guidance for FY 2024 adjusted EBITDA as well. The financial services and digital payments company generated a record amount of gross profits and adjusted EBITDA in the 2023 fiscal year, and with continual growth in its core businesses, I believe Block remains an attractive play in the Fintech space in 2024!...
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Block Q4: Blowout Guidance Makes This Fintech A Strong Buy