Market Commentary

Jack Dorsey’s Block Reports Better Than Expected Results

Huzaifa Waseem · 1 minute read

Block (SQ:US), formerly known as Square, reported better-than-feared fourth-quarter results to send its shares higher on Friday.

The fintech company generated $4.65 billion in Q4 revenue, representing a 14% increase year-over-year. Cash App saw its sales rise by 12% to $2.86 billion, better than the expected $2.73 billion.

The company said its Bitcoin revenue fell 6.5% to $1.83 billion. Cash App generated $35 million of Bitcoin Gross Profit in Q4.

“Over the last year, our ecosystem model helped drive resilience as we continued to serve a diverse base of global customers across a wide range of verticals, complementary products, and use cases,” the company said in a shareholder letter.

Gross Payment Volume (GPV) rose 15% YoY to $53.16 billion. The company also introduced a 2023 Ebitda guidance of $1.30 billion, beating analysts' expectations of $1.28 billion.

“Looking ahead to 2023 and beyond, we are focused on balancing growth and efficiency and will prioritize speed, agility, and accountability. This framework will ensure we remain customer-led while building a disciplined and durable business for the long term.”

Earlier this week, Congressman from New Jersey, Josh Gottheimer, disclosed that he was buying Block shares last month. Similarly, his colleague Jim Langevin invested between $50,000 and $100,000 in the fintech company last November, taking advantage of a deep pullback in the stock.

On the other side, Congress and Senate members Ro Khanna and Ron Wyden, respectively, were selling Block shares in November and October.