Block shares soar on rock-solid earnings update

The news: Shares in US fintech and Afterpay parent Block rocketed 25% on the ASX on Friday after a strong third-quarter update.

The numbers: Block lifted its total net revenue 24% to USD5.62 billion ($8.8 billion), including USD2.4 billion in bitcoin revenue, up from USD1.8 billion year on year. Gross profit was up 21% to USD1.9 billion, but the group still posted a net loss of USD29.0 million. The fintech's earnings per share of 55 US cents beat expectations of 47 US cents, and full-year adjusted EBITA guidance was lifted from USD1.5 billion to between USD1.66 billion and USD1.68 billion.

The context: Block has had a tumultuous calendar year in 2023, with dramas including fraud accusations in a short-seller attack, years of drawdown on the company's bitcoin investments and the dismissal of a copyright lawsuit launched by H&R Block.

What they said: "We want to thank all of you for your trust and continued belief in our work. We will work to balance that trust with accountability, some of which I hope this letter provides," Block chief executive Jack Dorsey said in a letter to shareholders.