(Reuters) -Payments company Block reported a jump in third-quarter revenue on Thursday, helped by resilient spending from consumers who brushed off fears of an economic slowdown, sending shares up 14% in extended trading.
Wage growth and savings accumulated during the pandemic have bolstered consumers’ financial health and encouraged them to continue splurging even as economic jitters persist.
The central bank keeping interest rates higher for longer, however, could test their long-held optimism, analysts have warned.
Gross profit of Block’s Cash App climbed 27% in the quarter compared with a year earlier, while its Square business reported a 15% rise.
The company’s total net revenue was $5.62 billion for the three months ended Sept. 30, compared with $4.52 billion a year earlier.
(Reporting by Niket Nishant and Manya Saini in Bengaluru; Editing by Krishna Chandra Eluri)
