May 2 (Reuters) - Jack Dorsey-led Block posted a jump in first-quarter profit on Thursday as the payments firm benefited from resilient consumer spending and its own cost cuts.
Shares of the company rose 3% in extended trading.
Payments firms have benefited from a tight labor market and wage growth that has allowed Americans to set aside worries of an economic slowdown and continue spending on travel, shopping and dining out.
Meanwhile, Block has been focusing on cutting costs to improve profitability in its business by trimming headcount, reducing its real estate footprint and curbing discretionary expenditure.
The company posted a 19% jump in total net revenue, to $5.96 billion in the quarter.
Gross profit for Block's Cash App jumped 25% in the quarter compared to last year, while its Square business posted a 19% rise. Adjusted net income rose to $542.9 million, or 85 cents per share, in the three months ended March 31, from $271.2 million, or 43 cents per share, a year earlier. (Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Pooja Desai)
