What happened
The stock market has been hammered over the past couple of days. After a massive decline on Thursday, all three major market indexes were well in the red at 1:30 p.m. ET on Friday.
However, fintech giant Block (SQ -1.97%), better known by its former name Square, was one of the few bright spots. Sure, its 2% gain as of early afternoon might not seem too impressive, but considering that most of its fintech peers are down by 4%, 5%, or more at the same time, it is.
Image source: Block.
So what
Since we're in early May, you may have guessed that this move is earnings related. It's not difficult to see why investors might be pleasantly surprised with Block's latest results. Gross profit grew by 34% year over year, with strong growth in both the Cash App and Square (seller) ecosystems. Some of this increase came from the recent Afterpay acquisition, but the fintech giant's organic growth was still 25%, an impressive rate.
Cash App had a very strong quarter in the right ways, with subscription and service-based revenue rising by 43% compared with the same quarter last year. Impressively, Cash App's gross profit grew at such a rate despite Bitcoin revenue declining 51%.
Now what
One particularly interesting area to watch is the company's international growth. The vast majority of Block's income comes from the United States, but that is changing -- fast. In the seller ecosystem, gross profit doubled year over year in markets outside of the U.S., and if the company can keep this momentum going, it could be a major growth catalyst in the coming years.
