- Block, formerly Square, turned lower Friday after reporting weak first-quarter results.
- Bitcoin revenue sank 51% to $1.73 billion due to the "relative stability" in the price of the cryptocurrency.
- But the payment company gave upbeat guidance for its Cash App business.
Block, formerly known as Square, turned lower Friday after reporting weak first-quarter earnings as bitcoin revenue declined.
Shares gave up pre-market gains to trade down 4.7% at $91.10 as the stock market overall continued to see a broad sell-off.
Late Thursday, the mobile payment company reported adjusted earnings per share tumbled 56% to 18 cents, missing Wall Street expectations of 21 cents. Revenue dropped 22% to $3.96 billion, below consensus views for $4.1 billion.
Block said its payment system raked in $2.46 billion in revenue, a 39% decrease, while bitcoin revenue sank 51% to $1.73 billion due to the "relative stability" in the price of the cryptocurrency throughout the first quarter.
Management said revenue from the largest digital currency by market capitalization would continue to fluctuate with consumer demand.
Still, Block was upbeat on consumer spending and Cash App, the company's peer-to-peer payment system that also allows users to buy and sell bitcoin.
The company said it did not see a decrease in consumer appetite throughout the quarter on both its Afterpay and Cash App sectors.
Block projects gross payment volume for Cash App would increase year over year and estimated that April gross profit, excluding Afterpay, grew, driven by higher engagement and inflows.