NYSE$XYZ

Block Inc. · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Company performance was affected by COVID-19 pandemic, but Cash App delivered strong growth.

Block Inc. reported a total net revenue of $1.38 billion for Q1 2020, up 44% year over year. Cash App gross profit grew 115% year over year, while Seller GPV was down 35% year over year during the last two weeks of the quarter due to COVID-19 impacts.

  • Total net revenue was $1.38 billion, up 44% year over year.
  • Gross profit was $539 million, up 36% year over year.
  • Cash App gross profit grew 115% year over year.
  • Seller GPV was down 35% year over year during the last two weeks of the quarter.

Headline financials

Total Revenue

$1.38B

Previous: $959M+44.0%
EPS (adj)

-$0.02

Previous: $0.11-118.2%
Capital Expenditures

-$26.1M

Previous: -$18.2M-43.9%
Free Cash Flow

$95.2M

Previous: $14.3M+566.6%
Net Income

-$106M

Previous: -$38.2M-177.6%
Operating Income

-$90.3M

Previous: -$22M-309.6%
Gross Profit

$539M

Previous: $397M+35.7%
Cash & Equivalents

$1.96B

Previous: $522M+276.2%
Total Assets

$6B

Previous: $4.4B+36.4%
Stock-Based Comp

$77.3M

Previous: $61.1M+26.5%

Revenue & EPS history

Block Inc. · Revenue · Quarterly

$1.38B

Q1 2020+44%vs Q1 2019
Beat estimate in 9 of 16 quarters(56%)
ActualEstimate

Revenue by segment

Block Inc. · $1.69B total across 3 segments · Q1 2020

  • Square
    $853M
  • Cash App
    $528M
  • Bitcoin Ecosystem
    $306M

Forward guidance

Due to the uncertainty around the impact and severity of COVID-19, the company is not providing second-quarter or full-year 2020 revenue or earnings guidance at this time; instead, they have provided a further update on the latest trends in their business during the month of April.

Tailwinds

  • Seller GPV growth improved modestly in the second half of April.
  • Seller GPV from card-not-present transactions achieved positive growth year over year in April.
  • Cash App delivered strong revenue and gross profit growth year over year in April.
  • Cash App achieved its highest monthly totals for net-new transacting active customers in April.
  • April direct deposit volumes and new direct deposit transacting active customers increased by approximately 3x and 4x, respectively, compared to March.

Headwinds

  • Seller GPV was down 39% year over year in April.
  • Seller GPV from card-present transactions was down materially year over year in April.
  • Measures to support sellers through COVID-19 are expected to have a material impact on subscription and services-based gross profit from the Seller ecosystem in the second quarter on a year-over-year basis.
  • Square Capital is expected a modest revenue and gross profit contribution during the second quarter, decreasing materially on a year-over-year basis.
  • Transaction and loan loss expenses recognized in future quarters may remain volatile as a result of actual losses on first quarter reserve estimates.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+1.2%

Avg return

Earnings day

+2.5%

Avg return

5 days after

+4.0%

Avg return

30 days after

52%

24 / 46 earnings

Positive

+35.1%

Q4 2021

Best reaction

-24.5%

Q1 2015

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+7.3%+1.7%-3.6%
Q4 2025-4.2%+19.6%+2.7%
Q3 2025-7.7%-7.3%-13.8%
Q2 2025-4.5%+0.1%-2.5%
Q1 2025-20.4%-18.0%+5.6%
Q4 2024-17.7%-21.4%-26.4%
Q3 2024-4.0%+12.4%+26.5%
Q2 2024-2.4%-7.5%+6.8%
Q1 2024+3.9%+7.1%-4.1%
Q4 2023+22.4%+20.5%+25.3%
Q3 2023+18.8%+24.6%+58.8%
Q2 2023-14.7%-16.3%-21.9%
Q1 2023-0.1%+0.0%+7.0%
Q4 2022+6.1%+5.2%-16.8%
Q3 2022+10.0%+14.4%+24.8%
Q2 2022-0.4%-7.9%-24.7%
Q1 2022-9.9%-21.0%-22.2%
Q4 2021+35.1%+42.1%+46.9%
Q3 2021-6.0%-8.6%-28.2%
Q2 2021+10.2%+11.3%+8.4%
Q1 2021+0.6%-4.8%-7.8%
Q4 2020-11.5%-14.2%-22.2%
Q3 2020+15.6%+0.4%+21.5%
Q2 2020+8.7%+9.2%+13.4%
Q1 2020+11.9%+12.3%+34.8%
Q4 2019+2.9%+4.7%-30.8%
Q3 2019+5.5%+4.5%+11.3%
Q2 2019-13.4%-19.7%-23.1%
Q1 2019-7.0%-3.7%-14.9%
Q4 2018+4.2%-4.2%-3.9%
Q3 2018-2.7%-9.7%-21.4%
Q2 2018+12.4%+9.7%+37.1%
Q1 2018+2.1%+6.1%+23.3%
Q4 2017-1.1%-1.1%+5.7%
Q3 2017+3.3%+8.8%+3.6%
Q2 2017-5.9%-4.2%-3.3%
Q1 2017+5.8%+4.0%+23.3%
Q4 2014-0.6%-3.1%-1.2%
Q4 2016+17.2%+22.6%+13.4%
Q3 2015+8.3%+10.4%+18.0%
Q3 2016+5.2%+8.8%+13.5%
Q2 2015+6.8%+8.2%+15.4%
Q2 2016+12.6%+12.0%+19.9%
Q1 2015-24.5%
Q1 2016-23.7%
Q4 2015-1.6%
Q3 2014
Q2 2014
Q1 2014

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