San Francisco-based Square-parent Block (SQ) announced its financial results for the third quarter ended September 30, surpassing expectations and resulting in a surge in SQ stock. With preliminary 2024 guidance for earnings before interest, taxes, depreciation and amortization (EBITDA) also exceeding estimates, Square continues to demonstrate steady growth.

Square's adjusted earnings for Q3 stood at 55 cents per share, representing a notable 31% increase from the same period last year. Analysts had forecasted earnings at 47 cents per share, making Square's performance even more impressive.

Net revenue for the quarter soared by 24% to $5.62 billion, including transactions made through the Cash App for digital cryptocurrency Bitcoin. This exceeded the predicted revenue of $5.42 billion. The strong revenue growth further boosted investor confidence in SQ stock, which saw a significant surge of nearly 19% in extended trading, reaching $52.29.

Gross profit, another crucial metric for Square, rose by 21% to $1.9 billion, slightly surpassing estimates of $1.895 billion. This increase in gross profit was largely attributed to cost-cutting measures implemented by the company.

Square's exceptional performance in EBITDA was particularly notable. EBITDA, a key financial indicator for investors, jumped by 46% to $477 million, surpassing analyst estimates of $378 million. Looking ahead, Square provided an optimistic outlook for fiscal year 2024, forecasting EBITDA of $2.4 billion, representing a remarkable 44% increase from this year.

Despite the strong financial results, Square did experience a slight setback in gross payment volume from the transactions of merchant customers, which rose by 11% to $55.7 billion. However, this figure fell short of the estimated $61.14 billion.

SQ stock had faced a decline of 24% throughout 2023 leading up to the Block's earnings report. The inclusion of consumer lending firm Afterpay in Block's financial statement played a significant role in the positive outcome of the quarter.

Investors and industry analysts are optimistic about Square's performance as the company continues to demonstrate consistent growth in key financial metrics. Square's ability to adapt to changing market trends and its focus on cost-cutting measures have contributed to its considerable success. With the encouraging 2024 guidance, shareholders and market participants eagerly await Square's future financial reports with heightened anticipation.