Revenue miss causes block shares to drop 11%

• Block reported weaker-than-expected revenue for the third quarter.
• Revenue of $5.98 billion compared with analysts estimates of $6.24 billion.
• The stock plunged in extended trading.

On Thursday, the company's shares tumbled 11% in extended trading after it reported third-quarter revenue that fell short of Wall Street expectations.

Analysts' consensus estimates from LSEG were exceeded by the company's performance.

• Earnings per share: 88 cents adjusted vs. 87 cents expected
• Revenue: $5.98 billion vs. $6.24 billion expected

Square, previously known as Block, reported a 19% increase in gross profit to $2.25 billion from the previous year. Analysts often view gross profit as a more reliable indicator of the company's core transactional operations.

The company's net income increased by $283.7 million, or 45 cents per share, after experiencing a loss of $88.7 million, or 15 cents a share, the previous year.

The Cash App business, a significant contributor to overall profitability for the company, reported $1.31 billion in gross profit, a 21% year-over-year increase. Additionally, Block, run by Twitter co-founder Jack Dorsey, announced that its Cash App Card monthly active users increased 11% year over year to more than 24 million.

The company announced that its gross profit for the fourth quarter would rise by 14% to $2.31 billion.

Block's third-quarter earnings call starts at 5 P.M. Eastern time.