AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights:
- Block, Inc. (ASX:SQ2) reported a 1% fall in net revenue to US$17.53 billion in the financial year 2022 compared to the previous year.
- The gross profit grew 36% over the year, but it posted a net loss of US$540.7 million in FY22 against the net income in FY21.
- For FY23, the fintech company expects the adjusted EBITDA margin to grow by one percentage point.
Digital payments company Block Inc. (ASX:SQ2) stock rose over 6% on Friday, 24 February 2023, after announcing its financial year ended 31 December 2022 (FY22) results. The fintech company managed by Twitter co-founder Jack Dorsey reported 1% fall in net revenue at US$17.53 billion.
*Data powered by Morningstar®. Data delayed 20 minutes unless otherwise indicated. Read More
as of 24/02/2023, 03:13:58 PM AEDT
Block Inc, formerly Square, was founded in 2009. It builds tools to empower people and businesses for more participation in the economy through its Square and Cash App. Its revenue is transaction-based and subscription-based and also comes from the hardware and bitcoin transactions.
For FY22, its revenue, excluding Bitcoin revenue, grew 36% over the year to US$10.42 billion and excluding both Bitcoin and BNPL (Buy Now Pay Later) platform revenue, increased 26% to US$9.61 billion YoY.
For the full year 2022, the transaction revenue increased 19% to US$5.70 billion compared to the previous year, and transaction-based gross profit grew 13% annually to US$2.34 billion. Its gross payment volume (GPV) improved by 21% from a year earlier to US$203.54 billion.
The subscription and service stream revenue grew 68% from FY21 to US$4.55 billion, with a 66% growth in gross profit to US$3.69 billion for fiscal 2022. It recognizes BNPL revenue under subscription and service. The company acquired its BNPL platform through the acquisition of Afterpay Limited, a global buy now, pay later platform which facilitates retail merchant clients to offer BNPL facilities to their customers. The company acquired Afterpay in January 2022 to connect its Square and Cash App ecosystem.
BNPL platform generated US$811 million of revenue in FY22.
The other revenue stream, the hardware, generated US$0.164 billion in revenue for the year, and Bitcoin contributed US$7.11 billion in total revenue. As of 31 December 2022, the company has purchased bitcoin worth US$220.0 million for investment purposes.
Block reported 36% growth in the gross profit to US$5.99 billion in FY22 compared to US$4.42 billion the previous year. However, due to increased operating expenses, including higher amortization and other expenses, it posted a net loss of US$540.7 million against the net income of US$166.3 million in FY21.
At the end of 2022, the company had an accumulated deficit of US$568.7 million and cash and cash equivalents, restricted cash, and customer funds of US$8.43 billion.
Outlook for FY23
For FY23, the fintech company expects its adjusted EBITDA margin to grow by one percentage point and its adjusted operating income margin to expand as well over the financial year 2022.
