:Block Inc reported mixed fourth-quarter results on Thursday as payment volumes at the fintech giant led by Jack Dorsey held up against a tough economic backdrop, but depressed prices of cryptocurrencies partially offset gains.
Shares of Block, formerly called Square, reversed course to rise 3 per cent in volatile extended trading after results.
Consumers were largely resilient to inflationary pressures throughout 2022, helping sustain the company’s mainstay online payments service, known as CashApp.
The holiday season is also typically marked by much higher discretionary spending on gifts, travel, and entertainment, pushed by steep discounts offered on everything from toys to airline tickets.
Still, Americans have also begun to see the effects of an economic slowdown as the cost of living soars, pushing many, particularly those in the lower-income bracket to dip into household savings buffers.
For the full-year Block’s bitcoin revenue fell nearly 29 per cent to $7.11 billion, as prices of the cryptocurrency retreated amid heavy market volatility triggered by a risk off sentiment and a slew of big name collapses.
The fintech, which offers merchant payment services and an app that lets people trade cryptocurrency, said gross profit in the quarter rose 40 per cent to $1.66 billion.
The company reported net revenue of $4.65 billion in the three months ended Dec. 31, compared with $4.08 billion a year earlier.