In this video, I will go over Block's (SQ +2.96%) Q4 earnings report and touch on a couple of points it raised during the call. I was expecting a good quarter from the company, as I mentioned in my Q4 preview piece. You can find the video below, but here are some of the highlights.
- The company reported total net revenue of $4.08 billion in the fourth quarter of 2021, up 29% year over year (YOY), beating estimates of $3.98 billion.
- Excluding Bitcoin, total net revenue in the third quarter was $2.12 billion, up 51% YOY.
- Bitcoin revenue was $1.96 billion, up 12% YOY, and Bitcoin gross profit was only $46 million.
- Cash App was the most downloaded finance app in the U.S. in 2021 and the No. 4 most downloaded app overall in the U.S. in 2021 on iOS.
- There were more than 44 million monthly transacting actives on Cash App at the end of the quarter, an increase of 22% YOY.
- Gross profit was $1.18 billion, up 47% YOY and up 50% on a two-year compound annual growth rate (CAGR) basis (which is a better comparison to show how the long-term trend will continue).
- Seller gross profit grew 54% YOY to $657 million and 32% on a two-year CAGR basis.
- Cash App gross profit grew 37% YOY to $518 million and 90% on a two-year CAGR basis.
- Square gross profit in markets outside the U.S. grew 60% to $62 million. They expect to continue to grow outside of the United States by offering their products to more markets and through mergers and acquisitions. Afterpay, which has 35% of its consumer base outside of the U.S., will certainly help with that.
- Regarding Afterpay, gross merchandise value (GMV) grew 54% YOY, and revenue grew 53% in the second half of 2021. Afterpay had more than 122,000 annual active merchants, up 64% YOY, and more than 19 million annual active consumers, up 47% YOY. For the full year 2021, Afterpay delivered $19.7 billion in GMV, up 74% YOY.
- Jack Dorsey mentioned during the call that the goal for Cash App is for it to handle all your finances.
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*Stock prices used were the closing prices of Feb. 24, 2022. The video was published on Feb. 25, 2022.
