According to Bloomberg, Block Inc. has revised its full-year EBITDA forecast to $2.90 billion, up from the previous estimate of $2.76 billion. This upward adjustment comes after the company reported a robust second-quarter performance, with EBITDA reaching $759 million, surpassing analyst expectations. In a letter to shareholders, Block's co-founder Jack Dorsey emphasized that the company's operating income margin was 14%, while the adjusted operating income margin stood at 18%. He attributed this improvement to strong growth and disciplined expense management during the quarter.
EBITDA, which stands for earnings before interest, taxes, depreciation, and amortization, is a measure of profitability that differs from net income. It focuses on the cash profit generated by the company's operations by excluding costs associated with depreciation and amortization, as well as taxes and debt payments.
Despite the positive EBITDA results, Block's Bitcoin revenue for the quarter was $2.61 billion, falling short of analyst estimates. The company continues to invest 10% of its gross profit from Bitcoin products each month into purchasing Bitcoin for investment purposes. Block Inc. is well-known for its Cash App, a popular person-to-person money transfer service, and its payments processing platform, Square. The company also includes emerging businesses like TBD, which focuses on decentralized technologies.
