NYSE$XYZ
Block Inc. · Q1 2021 earnings
Q1 2021 earnings · · Investor relations
Briefing
achieved strong growth at scale, driven by both Seller and Cash App ecosystems
Block Inc. reported strong growth in Q1 2021, with total net revenue up 266% year over year to $5.06 billion and gross profit up 79% year over year to $964 million. The Cash App ecosystem delivered gross profit growth of 171% year over year, and the Seller ecosystem saw gross profit increase by 32%.
- Total net revenue was $5.06 billion, up 266% year over year.
- Gross profit was $964 million, up 79% year over year.
- Cash App generated gross profit of $495 million, up 171% year over year.
- Seller ecosystem generated gross profit of $468 million, up 32% year over year.
Headline financials
Revenue & EPS history
Block Inc. · Revenue · Quarterly
$5.06B
Revenue by segment
Block Inc. · $8.57B total across 3 segments · Q1 2021
- Cash App$4.04B+665.1%47.1%
- Bitcoin Ecosystem$3.51B+1047.0%41.0%
- Square$1.02B+19.3%11.9%
Forward guidance
For the second quarter of 2021, Square anticipates an increase of approximately $120 million in non-GAAP product development, sales and marketing, and general and administrative expenses compared to the first quarter of 2021. Additionally, the company expects transaction and loan loss expense to increase by approximately $40 million compared to the first quarter of 2021.
Tailwinds
- Anticipates prioritizing investments in Cash App and Seller ecosystems
- Expects non-GAAP product development, sales and marketing, and general and administrative expenses, in aggregate, to increase by approximately $120 million compared to the first quarter of 2021
- Intends on continuing to invest in building out teams, including attracting, hiring, and retaining talented employees
- Businesses are well-positioned to help customers adapt in a dynamic environment
- Believes two-year compound annual growth rates from 2019 through 2021 will help reflect underlying gross profit trends in each ecosystem.
Headwinds
- Notes that the variability of potential outcomes related to the growth of business and the macro environment, actual realized losses may differ materially from estimates for provisions.
- Expects transaction and loan loss expense to increase by approximately $40 million compared to the first quarter of 2021.
- Has not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP operating expenses or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as share-based compensation expense.
- In the second quarter of 2021, Cash App will lap strong gross profit growth of 167% year over year in the second quarter of 2020 as government disbursements began in April 2020.
- The impact and severity of COVID-19 are uncertain.
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 2021
+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
| Quarter | Report date | Reaction (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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