Block (NYSE:SQ) shares rose more than 4% on Friday after the company reported its Q4 results, with revenue of $4.65 billion (up 14% year-over-year) coming in better than the Street estimate of $4.62 billion, boosted by subscription & services revenues, which grew 70% year-over-year. EPS was $0.22, compared to the Street estimate of $0.30.
The company provided better-than-expected profit guidance for the fiscal 2023-year. Adjusted EBITDA is expected to be $1.3 billion, compared to the Street estimate of $1.28 billion.
Additionally, management outlined its long-term investment framework, where both SQ overall and each of its Square/Cash App ecosystems will target gross profit retention (NRR) of more than 100% long-term. The company is also targeting a Rule of 40 where gross profit growth plus adjusted operating margin should exceed 40% over the long term.