Block Inc (NYSE:SQ) reported a first-quarter earnings miss driven by a sharp downturn in Bitcoin (CRYPTO: BTC) revenue.

On Thursday, Block reported first-quarter adjusted EPS of 18 cents on $4 billion in revenue. Both numbers missed consensus analyst estimates of 20 cents and $4.1 billion, respectively. Revenue was down 21.5% from a year ago.

Cash App generated $1.73 billion in Bitcoin revenue in the first quarter, down 51% from a year ago. Excluding Bitcoin, Block said the company's total net revenue would have been up 44% in the first quarter.

Block said Cash App gross profit was up 26% to $624 million.

Related Link: 'Still A Second-Half Story': Twilio Analysts React To Mixed Q1 Earnings

Voices From The Street: CFRA analyst David Holt said investors will likely be focused on how Block integrates Afterpay into Cash App in coming quarters.

"Headline figures were noisy, as sagging crypto prices led to top- and bottom-line misses, but the quarter did contain bright spots, including a 15% (ex. Afterpay) boost in gross profit expected in April with resilient growth in Cash App, led by higher actives and payment volumes," Holt wrote.

Bank of America analyst Jason Kupferberg said Block's quarter was positive overall, and the stock remains undervalued.

"Focus turns to the May 18 Analyst Day, where we expect a more detailed discussion of APT integration, as well a deep dive into cohort economics and int’l expansion plans," Kupferberg wrote.

Needham analyst Mayank Tandon says Block's Cash App and Seller trends remain solid, and the stock offers a compelling risk-reward balance as global economies open back up fully.

"With the shares trading at an EV/FY23 revenue (ex-Bitcoin) multiple of ~4.5x, we view the risk-reward as favorable for large cap payments investors and view the upcoming analyst day as a potential catalyst for the shares as management's growth plans are given more clarity," Tandon wrote.

Block Ratings, Price Targets:

• CFRA has a Hold rating and $118 target.
• Bank of America has a Buy rating and $144 target.
• Needham has a Buy rating and reduced the price target from $175 to $135.
• Courtesy photo.