Block tops estimate 4th quarter, posting nearly $2 billion in Bitcoin transactions

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2022-03-01 20:36:17

The payments company formerly known as Square noted a slowdown in business in January due to the Omicron variant, but the growth rebound so far in February.

Fintech and digital payments giant Block reported better-than-expected fourth-quarter 2021 results after the market close on Thursday.

  • Total revenue came in at $4.08 billion, up 29% year-over-year, narrowing analyst consensus. Excluding bitcoin, revenue came in at $2.12 billion, up 51% year-over-year. Adjusted EPS is $0.27 vs $0.19 estimate.

  • Peer-to-peer payment service Cash App, which allows users to directly buy and sell bitcoin, generated $1.96 billion in bitcoin transactions and $46 million in gross profit in the fourth quarter, an increase of 12% and $46 million, respectively. 14% over the same period last year. In terms of perspective, the company’s total gross profit for the fourth quarter was $1.18 billion.

  • Of the $220 million in bitcoin put on the company’s balance sheet in late 2020 and early 2021, Block posted no loss in the fourth quarter, leaving full-year declining fees at $71 million, and valued at $149 million. As of year-end, the fair value of the bitcoin investment is $371 million, or $222 million more than it carries.

  • Square announced a rebranding of Block in December to reflect the company’s expansion beyond its roots of merchant payment processing. On the crypto front, Block currently allows around 70 million users of its Cash App to buy and sell bitcoin. The company is also building a decentralized bitcoin exchange and funding bitcoin development projects.



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