Block, Inc. (NYSE:SQ) is a global technology company headquartered in San Francisco, CA. The company focuses on financial services and operates through products such as Square, Cash App, TIDAL, Spiral and TBD54566975.
Block Inc Q4 Report
According to a CNBC report, the stock of Block Inc. rose in extended trading as the payments company reported fourth-quarter or Q4 revenue and gross profit that beat Wall Street’s expectations. Block Inc posted a (non-adjusted) net loss of $114 million, or 19 cents per share, for the quarter.
The payment company posted $1.66 billion in gross profit, up 40% from a year ago. It beat Wall Street expectations of $1.53 billion. The analysts tend to focus on gross profit as a more accurate measurement of the company’s core transactional businesses.
It must be noted that Block is formerly known as Square. And the company said to CNBC in a call that “the company ended the year with 51 million monthly transacting activities for Cash App in December, with two out of three transacting each week on average.”
The Cash App business of Block Inc reported $848 million in gross profit, a 64% year-over-year rise, as reported by Block Inc. During December 2022, Cash App had 51 million monthly transacting activities, an increase of 16% year over year.
The Chief Executive Officer of Block Inc, Jack Dorsey said that its Cash App Card generated more than $750 million in gross profits in the last year, up 56% from the year-earlier period. Its point-of-sale business, Square, “saw gross profit grow 22% on an annual basis to $801 million.”
Block Inc added in the release that “they are looking ahead to 2023 and beyond, they are focused on balancing growth and efficiency and will prioritize speed, agility, and accountability. This framework will ensure they remain customer-led while building a disciplined and durable business for the long term.”
Moreover, in the fourth quarter, “Bitcoin gross profit was $35 million on $1.83 billion in revenues, a lower margin on higher revenues than Wall Street anticipated. Bitcoin revenues represent the amount of bitcoin the company sold to customers during the quarter,” as reported by Yahoo Finance.
As Block Inc said the decline in revenue was “driven by a decrease in the total dollar amount of Bitcoin sold to customers, which it recognizes as bitcoin revenue. Bitcoin gross profit was 2% of bitcoin revenue in the quarter.”
Block also published a memo after the release of earnings. The memo shows delinquencies for Afterpay, an Australian fintech company, rose 31% to a total amortized cost of $2 billion through the fourth quarter.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/02/24/what-does-the-fourth-quarter-2022-reports-of-block-inc-says/