Block Inc (NYSE:SQ) shares are trading lower in Thursday's after-hours session after the payment services company reported second-quarter financial results. Here's a rundown of the results.

What Happened: Block said second-quarter revenue increased 26% year-over-year to $5.54 billion, which beat the consensus estimate of $5.08 billion, according to Benzinga Pro. The company reported second-quarter earnings of 39 cents per share, which beat average analyst estimates of 35 cents per share.

Gross profits were up 27% year-over-year, driven by strong momentum from Square and Cash App. Gross payment volume came in at $59.01 billion, up 12% year-over-year. Cash App total monthly transacting users grew to 54 million, up 15% year-over-year. 

"We're focused on the four strategic priorities to drive Square's business: enabling omnichannel, growing upmarket, expanding globally, and integrating generative artificial intelligence," the company said in a letter to shareholders.

Block noted that it remains focused on global expansion by improving product parity and introducing new ways for sellers to use its ecosystem. The company also highlighted the ways in which it is incorporating generative AI into its apps, including Square Team Communication and Announcements AI.

Block said it didn't recognize any Bitcoin (CRYPTO: BTC) losses in the second quarter. As of June 30, the company held $245 million in Bitcoin.

Block ended the quarter with $6.8 billion in cash, equivalents and investments. 

The payments company also raised its expectations for the third quarter. Gross profit is expected to grow 21% year-over-year. Adjusted EBITDA is expected to come in at $1.5 billion.

Management will hold a conference call to discuss these results at 5 p.m. ET.

See Also: PayPal Q2 Earnings Beat Estimates, Revenue Jumps 7% On 'Continued Momentum,' Shares Slide

SQ Price Action: Block shares were down 3.47% after hours at $71.00 at the time of writing, according to Benzinga Pro.

Photo: courtesy of Block.