Block sinks 10% after weak third quarter results miss Wall Street estimates

Core Viewpoint - Block shares experienced a 10% decline following disappointing third-quarter earnings that did not meet Wall Street expectations, indicating a slowdown in profit growth for the Square service [1] Financial Performance - Earnings per share were reported at 54 cents adjusted, compared to the expected 67 cents [4] - Revenue for the quarter was $6.11 billion, falling short of the anticipated $6.31 billion [4] - Year-to-date, Block shares have decreased by 24% [1] Segment Performance - Square's gross payment volume increased by 12% year-over-year, but gross profit growth for the point-of-sale service was only 9%, a decline from the previous quarter's 11% growth [1] - Cash App's gross profit growth was significantly stronger at $1.62 billion, reflecting a 24% increase year-over-year, supported by 58 million monthly transacting active users [3] - The growth in Cash App was driven by services such as Cash App Borrow, Cash App Card, and Buy Now Pay Later [3] Strategic Insights - The company attributed the slower growth in Square to a change in processing partners and lower-margin hardware sales [2] - The Chief Financial Officer noted that the company's product and go-to-market strategies are effectively gaining profitable market share in targeted verticals like food and beverage, particularly with larger sellers and outside the U.S. [2]