Shares of fintech firm Block experienced a significant surge of as much as 19% in after-hours trading on Thursday, following the release of their impressive third-quarter earnings report. The company surpassed analyst expectations on both the top and bottom line, with robust revenue growth in Cash App and Square.

According to CNBC, Block reported a remarkable $5.62 billion in revenue for the third quarter, exceeding the projected figure of $5.44 billion. Adjusted earnings per share for the quarter stood at 55 cents, surpassing the estimated 47 cents.

This outstanding performance not only led to a surge in share prices but also prompted Block to raise their full-year guidance. Previously anticipating $1.5 billion in adjusted EBITDA, the company now expects the figure to fall between $1.66 billion and $1.68 billion. Furthermore, Block revised their adjusted full-year operating income guidance from $25 million to a remarkable $205 million to $225 million.

In terms of future forecasts, the company didn't provide specific guidance for full-year revenue but did indicate an expectation of $875 million in adjusted operating income for 2024. They also anticipate gross profit for 2023 to range from $7.44 billion to $7.46 billion, with plans for a significant improvement in adjusted operating income margin compared to the previous year.

During the third quarter, Block witnessed a 24% year-over-year increase in net revenue, reaching $5.62 billion compared to $4.52 billion in the same period last year. Bitcoin revenue experienced substantial growth, soaring from $1.76 billion to $2.42 billion year-over-year. The company's gross profit climbed by 21%, rising from $1.57 billion to $1.90 billion.

The remarkable growth was driven by Block's payment platform, Cash App, and its point-of-sale suite, Square. Cash App revenue witnessed an impressive 34% year-over-year increase, reaching $3.58 billion, while Square revenue grew by 12% to $1.98 billion.

Addressing shareholders, Block co-founder Jack Dorsey expressed gratitude for their trust and belief in the company's work. Dorsey also assured stakeholders that accountability would be balanced alongside trust. In his letter, he outlined the company's focus on go-to-market strategies, targeting local restaurants and service businesses for expansion. Additionally, Block plans to leverage AI technologies to optimize its engineering talent.

During a conference call with analysts, Dorsey emphasized his commitment to lead Square until specific milestones are achieved. His primary objectives include a significant return to growth, increased innovation, and seamless ecosystem integration.

The positive earnings report and revised guidance have instilled confidence among investors, leading to a surge in Block shares. The company's strong performance in the third quarter, driven by Cash App and Square revenue, suggests that Block is well-positioned for future growth and success.