Second quarter earnings exceed expectations, show improvement.

• Block reported better-than-expected earnings for the quarter but missed on revenue.
• The company's sales were $6.16 billion, lower than the anticipated $6.28 billion.
• The stock rose in extended trading.

The stock increased in extended trading after the company reported higher profit in its second-quarter earnings report on Thursday.

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

• Earnings per share: 93 cents adjusted vs. 84 cents expected
• Revenue: $6.16 billion vs. $6.28 billion expected

Square, previously known as Block, reported a 20% increase in gross profit to $2.23 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 91% to $195.3 million, or 31 cents per share, from $102 million, or 17 cents per share, in the previous year.

The Cash App business, a significant contributor to overall profitability for the company, reported $1.3 billion in gross profit, a 23% year-over-year increase. Additionally, Block, run by Twitter co-founder Jack Dorsey, announced that its Cash App Card monthly active users increased 13% year over year to more than 24 million in June.

Over the past year, Block has streamlined its operations. In January, Dorsey reportedly announced that the company had let go of a significant number of employees, following a round of layoffs in December.

The company increased its forecast for full-year gross profit, earnings, and operating income.

Nick Molnar, CEO and co-founder of Afterpay, will be taking on a larger role at Block and will lead the centralized sales function across the company, which includes Square. This position will report directly to the Block CEO.

— CNBC's Stephen Desaulniers contributed to this report.