NYSE$XYZ
Block Inc. · Q1 2022 earnings
Q1 2022 earnings · · Investor relations
Briefing
Delivered impressive growth at scale and strengthened ecosystems of Cash App and Square.
Block Inc. reported a decrease in total net revenue by 22% year over year to $3.96 billion, driven by a decrease in bitcoin revenue, while gross profit increased by 34% year over year to $1.29 billion. The company completed the acquisition of Afterpay and saw contributions from both Cash App and Square ecosystems.
- Gross profit grew 34% year over year to $1.29 billion, up 55% on a two-year compound annual growth rate (CAGR) basis.
- Cash App delivered gross profit of $624 million, an increase of 26% year over year.
- Square delivered gross profit of $661 million, an increase of 41% year over year.
- Total net revenue was $3.96 billion, down 22% year over year, and, excluding bitcoin revenue, total net revenue was $2.23 billion, up 44% year over year.
Headline financials
Revenue & EPS history
Block Inc. · Revenue · Quarterly
$3.96B
Revenue by segment
Block Inc. · $7.98B total across 3 segments · Q3 2023
- Cash App$3.58B+33.6%44.9%
- Bitcoin Ecosystem$2.42B+37.3%30.3%
- Square$1.98B+11.9%24.8%
Forward guidance
For the second quarter of 2022, Block expects non-GAAP operating expenses to increase by approximately $245 million compared to the first quarter of 2022. Excluding contributions from Afterpay, Block expects to increase overall non-GAAP operating expenses by approximately $180 million compared to the first quarter.
Tailwinds
- Square GPV is expected to be up 29% year over year in April.
- On a three-year CAGR basis, GPV growth is expected to be 24% in April, compared to 22% growth in the first quarter for Square ecosystem.
- Cash App gross profit, excluding Afterpay, is expected to grow on a year-over-year and three year CAGR basis in April.
- The growth of Cash App gross profit will be driven by growth in monthly transacting actives, engagement across our ecosystem, and inflows into Cash App.
- Square and Cash App ecosystems are well positioned to help our customers adapt and grow based on trends we have observed during recent quarters.
Headwinds
- We expect non-GAAP operating expenses across product development, sales and marketing, general and administrative expenses, and transaction, loan and consumer receivables losses, in aggregate, to increase by approximately $245 million compared to the first quarter of 2022.
- Excluding contributions from Afterpay, we expect to increase overall non-GAAP operating expenses by approximately $180 million compared to the first quarter.
- On a GAAP basis, we expect to incur approximately $50 million of quarterly expenses related to amortization of intangible assets due to the Afterpay transaction through the remainder of 2022 and over the next few years.
- We expect to recognize approximately $12 million of this expense in cost of sales and the remainder in sales and marketing.
- In the second quarter of 2022, we expect our share-based compensation expense to decrease modestly quarter over quarter on a dollar basis, given a one-time expense in the first quarter related to the Afterpay transaction.
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 2022
+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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