Block Inc (NYSE:SQ), formerly known as Square, stock rose 0.41% (As on May 6, 11:15:34 AM UTC-4, Source: Google Finance) after the company reported $195 million in operating earnings (adjusted EBITDA), beating analysts’ estimates of $136 million, according to IBES data from Refinitiv. The gross profit was of $1.3 billion, up 34% year over year. In February and March, Afterpay contributed $92 million of gross profit. Cash App generated $624 million of gross profit in the first quarter, an increase of 26% year over year. Adjusted EBITDA was $195 million.

SQ in the first quarter of FY 22 has reported the adjusted earnings per share of 18 cents, missing the analysts’ estimates for the adjusted earnings per share of 21 cents. The company had reported 22 percent fall in the adjusted revenue to $3.96 billion in the first quarter of FY 22, partially attributed to the fall in Block’s Bitcoin revenue streams due to a drop in interest from retail traders as the cryptocurrency’s price has retreated after a bull run in 2021. Overall, Block’s Bitcoin revenue halved to $1.73 billion.

Meanwhile, Block plans to reveal real-time information on Bitcoin mining using energy from a tie-up with Tesla’s solar energy production facilities in Texas, USA.

Moreover, the company saw the strongest monthly engagement on Cash App in March as monthly actives transacted 21 times on average across our ecosystem during the month. This is driven by strong adoption of our banking products, including Cash App card. Cash App Card was one of the fastest-growing monetization streams with gross profit growth in the first quarter of more than 50% year over year, despite strong growth in the prior-year period, and more than 170% growth on a three-year CAGR basis. The company saw the highest quarterly inflows ever into Cash App, with growth on both a quarter-over-quarter and year-over-year basis. Inflows per active declined slightly on a year-over-year basis, given significant government disbursements in the prior-year period but increased quarter over quarter.

For the second quarter, the company expects to increase overall non-GAAP operating expenses by $245 million, compared to the first quarter or $180 million when excluding Afterpay. For the full quarter 2022, the company expects to increase overall non-GAAP operating expenses by $2.1 billion compared to 2021. This includes Afterpay’s expected operating expense base of approximately $900 million this year. The company expects to deliver greater adjusted EBITDA in the second half of 2022 compared to the first half of the year given the pacing of the investment during the year.