Block Generates Gross Profit of $1.29 Billion in Q1 2022

Block, a leading American financial services and digital payments company, released its financial results for the first three months of 2022 yesterday. During Q1, the company saw challenges across different segments. While gross profit increased by 34% YoY, the company’s total net revenue dipped by approximately 22% YoY.

In Q1 of 2022, the Cash App generated revenue of $2.46 billion and a gross profit of $624 million. Compared to the same period last year, the revenue related to the Cash App decreased by 39%. As far as Bitcoin revenue is concerned, the Cash App generated $1.73 billion in the first quarter. The number was down by more than 50% compared to the same period last year.

“We delivered impressive growth at scale during the first quarter of 2022. Gross profit grew 34% year over year to $1.29 billion, up 55% on a two-year compound annual growth rate (CAGR) basis. Afterpay contributed $92 million of gross profit in the months of February and March, with $46 million of gross profit recognized in each of Cash App and Square. Excluding Afterpay, gross profit was $1.20 billion, up 25% year over year and 49% on a two-year CAGR basis,” Block highlighted in a letter to its shareholders.

“Our Cash App ecosystem delivered gross profit of $624 million, an increase of 26% year over year and, excluding Afterpay, 17% year over year. Our Square ecosystem delivered gross profit of $661 million, an increase of 41% year over year and, excluding Afterpay, 31% year over year,” the letter added.

Afterpay

In 2021, Block (formerly known as Square) announced its plan to acquire Afterpay, one of the leading BNPL players in Australia, in a deal worth $29 billion.

According to Block, Afterpay contributed $65 million of revenue and $46 million of gross profit to Cash App in the first three months of 2022.