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For the months of January and February 2022, Block Inc. (NYSE:SQ) expects Square gross payment volume to rise 35% Y/Y for Cash App gross profit to rise on a Y/Y basis, without giving a percentage estimate.
Square GPV growth slowed down in January, but recovered in February as the Omicron variant faded. The Cash App’s profit growth is primarily from growth in monthly transacting actives, engagement across the ecosystem, and inflows into the app, Block said.
Still, Block (SQ) stock was down 3.4% in after-hours trading.
Q4 gross payment volume of $46.3B vs. $45.4B in Q3.
Q4 adjusted EPS of $0.27 vs. average analyst estimate of $0.22, decreased from $0.37 in Q3 and $0.32 in the year-ago quarter.
Q4 total net revenue of $4.08B topped $4.06B consensus and compared with $3.94B in Q3; it rose 29% Y/Y.
Excluding bitcoin, total net revenue was $2.12B vs. $2.03B in Q3, and up 51% Y/Y.
Transaction-based revenue of $1.31B increased 41% Y/Y and declined from $1.30B in Q3.
Cash App generated $2.55B of revenue in Q4, up 18% Y/Y and up from $2.39B in Q3. Cash App generated $1.96B of bitcoin revenue in the quarter and $46M of bitcoin profit.
The Square ecosystem generated $1.47B in Q4, up 49% Y/Y.
Q4 adjusted EBITDA of $184M fell from $233M in Q3 and was nearly even with $185M a year ago.
Square gross profit of $657M vs. $606M in Q3 and $427M in Q4 2020; Cash App gross profit of $518M vs. $512M in Q3 and $377M in the year-ago quarter.
Q4 non-GAAP operating expenses were $1.00B, up 62% Y/Y.
Conference call at 5:00 PM ET.
Earlier, Block (SQ) non-GAAP EPS of $0.27 beats by $0.05, revenue of $4.08 beats by $20M