(Bloomberg) -- Block Inc. shares surged after the payments company reported results and first-quarter expectations that exceeded analysts’ estimates.

The firm, headed by Jack Dorsey, includes a number of different businesses, such as household names Cash App and Square, and has owned buy now, pay later firm Afterpay for two years. Revenue from Cash App rose 31% from a year earlier to $3.91 billion, topping estimates of $3.71 billion.

Block reported full-year adjusted earnings before interest, taxes, depreciation and amortization of $1.79 billion, beating its own guidance of $1.66 billion to $1.68 billion. The company said it expects adjusted Ebitda of $570 million to $590 million for the first quarter, higher than analysts’ estimates of $514.5 million.

The company’s shares climbed 16% at 4:40 p.m. in late New York trading.

Whistleblowers recently alleged that Cash App didn’t adequately conduct due diligence on customers, claims US regulators are now probing, according to NBC. Additional regulation could impact Block as the US Consumer Financial Protection Bureau proposed in November treating companies that offer digital wallets more like banks. States have also put forward potential rules to rein in buy now, pay later providers such as Afterpay. 

Holiday spending fueled Square and Afterpay transactions over Black Friday and Cyber Monday, increasing them by 14% from a year earlier, the firm said at the time.

Fourth-quarter operating expenses rose 20% to $2.16 billion. Costs are a particular focus after Block announced job cuts to cap its workforce at 12,000 employees. The firm aims to reach that goal by the end of the year.

“We’re under our 12,000 people cap,” Dorsey said in a statement. “This constraint forces us to prioritize more impactful work, which we believe will lead to growth. We’re going to operate under this cap until we feel it’s holding us back, which is likely years out, and continue to look critically at our organization and priorities.”

Read More: Dorsey’s Block Furthers Bitcoin Foray With Hardware Wallet

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