Block, a fintech company, exceeded expectations set by Wall Street analysts with its first-quarter results, leading to a surge in its shares during after-hours trading. On May 2, Block, Inc. unveiled its Q1 2024 financials, revealing revenues of $5.96 billion, surpassing the $5.75 billion estimate provided by Zacks, an analytics firm, by 3.54%.

The company's earnings per share stood at $0.85, a notable increase from Zacks' estimate of $0.62 per share. Block reported gross profits of $2.09 billion for Q1, marking a 22% rise from the same period last year, and achieved a net income of $472 million.

Block's mobile payments and cryptocurrency platform, Cash App, contributed significantly to its performance, reporting $1.26 billion in gross profits for Q1, reflecting a 25% year-on-year increase. The platform's revenue also experienced a substantial uptick, jumping 23% to $4.17 billion compared to the year-ago quarter.

The company revised its second-quarter gross profit outlook to $2.185 billion, slightly higher than its initial forecast of $2.165 billion, and raised its EBITDA forecast to $690 million from $670 million.

Following the release of its financial results, shares of Block, Inc. (SQ) closed up 5.1% on May 2, reaching $70.30. During after-hours trading, the stock surged by 6.8% to $74.90. Despite this positive performance, Block's share price has experienced a 2.6% decline year-to-date, dropping from approximately $73 to $66 earlier in the week following reports by NBC News about U.S. prosecutors investigating the company in response to whistleblower allegations regarding transactions processed by its Square and Cash App businesses.

In his shareholder letter, Block co-founder Jack Dorsey addressed the company's focus on Bitcoin, emphasizing its importance as an open protocol for money. Dorsey highlighted that less than 3% of Block's resources are allocated to Bitcoin-related projects, which are funded by profits from its Bitcoin exchange. He argued that Bitcoin serves as the best candidate for an open protocol for money, emphasizing the need for a decentralized financial system not controlled by any single entity. Dorsey emphasized that embracing Bitcoin aligns with Block's mission to serve more people globally by providing access to an open financial system.