Block made a total of $4.42 billion in gross profit in 2021, a 62 percent increase year over year; however, net profit was only $77 million.
Block, Inc. (previously known as Square), a crypto-friendly digital payments software firm, reported $1.18 billion in gross earnings in Q4, up 47 percent from the same period in 2020.
The company, which is led by Bitcoin maxi, After a $29 billion acquisition, Jack Dorsey now has various company entities, including Cash App, Square, and the newly acquired buy now pay later (BNPL) firm Afterpay.
Block released its 2021 Q4 report on Feb. 24, revealing considerable gross profit increases across Cash App and Square, with each company making $518 million and $657 million, respectively, representing YoY gains of 37 percent and 54 percent.
In total, the corporation earned $4.42 billion in gross profit in 2021, representing a 62 percent increase over the previous year. The statistics should be taken with a grain of salt, as Block’s net profit after expenses for Q4 was only $77 million ($166 million for all of 2021), implying high operational costs.
Cash App’s Cash Card and Square’s seller ecosystem were cited as important drivers of Q4 growth, with the Cash Card seeing over 13 million active users in December and 38% of sellers utilising four or more Square business products.
Block also stressed the importance of the Afterpay arrangement for 2022, stating that it will allow the company to dramatically expand its capabilities and products this year. According to the firm,
“We concluded the acquisition of Afterpay, a global “buy now, pay later” (BNPL) platform, on January 31. We believe that by enhancing the links across our ecosystems as we create appealing financial products and services for consumers and merchants, this purchase will promote Block’s strategic ambitions for Square and Cash App.”
Block has been expanding its crypto footprint recently, in mid-January that Cash App had integrated the Lightning Network to speed up BTC transfers, and Dorsey confirming that Block was rolling out open-source Bitcoin mining rigs.
Dorsey is understood to be primarily focused on scaling the Block’s crypto activities after stepping down from Twitter in November.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.