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Block share price tumbles 6% as quarterly earnings sink

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The Block Inc (ASX: SQ2) share price opened in the red this morning before continuing its downwards slide.

Its fall come on the back of the S&P/ASX 200 Index (ASX: XJO) tech giant’s earnings for the three months ended 30 June, as The Motley Fool Australia explored earlier today.

The Block share price opened 5.9% lower at $118.63 before plummeting to its intraday low of $116.42 – representing a 7.7% slump.

It has since recovered slightly to trade at $118.33, at the time of writing, That’s 6.15% lower than it was at the end of Thursday’s session.

Let’s take a brief look at today’s release from the payment services provider and owner of former ASX market darling Afterpay.

As my Fool colleague James reported earlier this morning, Block’s earnings for the June quarter were mostly in line with the market’s expectations.

It posted US$4.4 billion of revenue – a 6% drop from the prior corresponding period.

Its adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) also slumped 29% to US$1.47 billion, leading the company to post a net loss of US$208 million.

However, the real weight on the Block share price is likely the company’s outlook.

It expects Square’s GPV [gross payments volume] to be up 18% year on year in July – down from 25% in the June quarter. Meanwhile, it failed to elaborate on the expected growth rate of its Cash App business.

It also flagged US$75 million of expected additional operating expenses for the current quarter.

Today’s fall included, the Block share price is 33% lower than it was when it hit the ASX in January.    

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