Block, the payment company led by Jack Dorsey, has increased its profit and growth forecasts after implementing AI-related layoffs. The company now expects its annual gross profit to reach $12.3 billion, surpassing previous guidance and market expectations. For the second quarter, Block anticipates a gross profit of approximately $3 billion, marking a 20% year-over-year increase.
In the first quarter, Block reported an adjusted EBITDA of $1 billion, a 24% increase from the previous year and above the market forecast of $947 million. Adjusted earnings per share were $0.85, exceeding the expected $0.67, while net revenue rose by 4.9% to $6.1 billion. Block highlighted that AI tools, such as MoneyBot for Cash App and ManagerBot for Square, are contributing to cost reductions and enhanced product efficiency.
Block Raises Profit Forecasts Following AI-Driven Layoffs
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