Jack Dorsey appeared at the Block Investor Day event, with stock prices rising over 7% as growth accelerates in the next three years.

Twitter founder Jack Dorsey made a rare appearance at the investor day event of his payment company Block, bringing good news of accelerated profit growth over the next three years. The stock price surged 9% at one point, ultimately closing at $62, up 7.56%.

Jack Dorsey made a rare appearance at the Investor Day event, expressing a positive outlook for the next three years.

Block, the payment company led by Jack Dorsey, stated that it expects profit growth to accelerate over the next three years while launching products at a faster pace and doubling down on integrating its consumer-facing Cash App and merchant payment service Square.

Block forecasts that its gross profit will increase by 17% in 2026, reaching 11.98 billion USD. This expectation is an acceleration compared to the company's gross profit growth rate of 15% this year. Block's CFO Amrita Ahuja stated in an interview before the investor day event held in San Francisco on Wednesday that this optimism reflects the operational efficiency improvements brought about by organizational restructuring in recent years.

In addition, Block is expected to maintain a growth rate of about 15% in gross profit by 2028, reaching 15.8 billion USD. Among the 48 analysts surveyed by Bloomberg, 31 recommend buying the stock, 12 recommend holding, and 5 recommend selling.

Block company's restructuring plan shows results

In 2024, Block launched a corporate restructuring plan aimed at promoting collaboration between its different business units. The teams are no longer divided by business units ( such as Square and Cash App), but instead are organized by functions such as engineering, product, sales, and so on.

Dorsey stated when discussing the initial organizational structure:

“Initially, we allowed these two organizations to compete with each other, with the aim of pushing them to constantly raise their standards. However, in the end, we found that the competition did not benefit our customers.”

To improve cost efficiency, Block announced at the end of 2023 that it would set the employee cap at 12,000. At that time, the company had about 13,000 employees. Today, Block's employee count is less than 11,000, and it plans to continue maintaining a business growth rate that exceeds the growth rate of operating expenses.

Integrate Square and Cash App to promote Bitcoin payments.

Block is also actively developing artificial intelligence and has launched automated chatbots to help consumers and businesses manage their finances.

Square is committed to assisting brick-and-mortar stores with payments, aiming to expand the market for large merchants, with a particular focus on fast-food restaurants. Cash App aims to convert its 58 million peer-to-peer payment users into formal banking customers. Block anticipates that the continued growth of its short-term loan product Borrow will become an important profit driver in the coming years. In addition to expanding the scale of various businesses, Block is also dedicated to linking these two ecosystems by incentivizing consumers to use their Cash App balances to pay Square merchants directly, replacing card payment services with this offering.

It has recently launched a series of product updates, including Bitcoin and stablecoin payment features. Dorsey stated:

“We believe that it is necessary to reduce reliance on the existing financial system, and both Bitcoin and stablecoins represent an alternative payment method. However, we believe that Bitcoin is the most open, neutral, and independent payment method, and we sincerely hope that it can become a daily currency as soon as possible.”

(Jack Dorsey shifts to stablecoin payments! Stablecoins erode Bitcoin's potential role, Ark lowers BTC price target )

Expand stock buyback plan, XYZ pump over 7%

Block Inc. expects that by 2028, its adjusted revenue will grow to over $4.6 billion. It is anticipated that by 2028, its adjusted earnings per share will grow at a rate of about 30% per year, reaching $5.50. The company also announced that its stock buyback plan will increase by $5 billion.

Encouraged by the company's optimistic outlook, Block's stock price ( stock code: XYZ) once surged 9% and ultimately closed at $62, up 7.56%.

In this article, Jack Dorsey appeared at the Block Investor Day event, where the growth is expected to accelerate in the next three years, causing the stock price to rise by over 7%. This first appeared on Chain News ABMedia.