NYSE$XYZ
Block Inc. · Q3 2021 earnings
Q3 2021 earnings · · Investor relations
Briefing
Delivered strong growth at scale.
In the third quarter of 2021, Block Inc. reported a total net revenue of $3.84 billion, a 27% increase year-over-year. Gross profit was $1.13 billion, up 43% year-over-year.
- Gross profit grew 43% year over year to $1.13 billion.
- Seller ecosystem gross profit was $606 million, up 48% year over year.
- Cash App ecosystem delivered gross profit of $512 million, an increase of 33% year over year.
- Entered into an agreement to acquire Afterpay, a global buy now, pay later platform.
Headline financials
Revenue & EPS history
Block Inc. · Revenue · Quarterly
$3.84B
Revenue by segment
Block Inc. · $5.6B total across 3 segments · Q3 2021
- Cash App$2.39B+15.5%42.7%
- Bitcoin Ecosystem$1.82B+11.1%32.4%
- Square$1.39B+44.0%24.8%
Forward guidance
For the fourth quarter of 2021, the company expects non-GAAP product development, sales and marketing, and general and administrative expenses, in aggregate, to increase by approximately $115 million compared to the third quarter of 2021. In the fourth quarter of 2021, the company expects transaction and loan loss expenses to increase by approximately $5 million compared to the third quarter of 2021.
Tailwinds
- Seller ecosystem is expected to deliver strong gross profit growth year over year and on a two-year CAGR basis in October.
- Seller GPV is expected to be up 42% year over year in October, and the two-year CAGR is expected to be up 24%.
- Cash App is expected to deliver strong gross profit growth year over year and on a two-year CAGR basis in October.
- Growth in Cash App will be driven by growth in monthly actives.
- Growth in Cash App will be driven by engagement across our ecosystem, and inflows into Cash App.
Headwinds
- GPV growth trends continued to vary by region, product, and vertical, depending primarily on differences in the timing and phases of reopenings.
- The company expects non-GAAP product development, sales and marketing, and general and administrative expenses, in aggregate, to increase by approximately $115 million compared to the third quarter of 2021.
- The aggregate increase of approximately $1.16 billion for such expenses in the full year of 2021 as compared to the full year of 2020, representing growth of 55% year over year.
- The company expects transaction and loan loss expenses to increase by approximately $5 million compared to the third quarter of 2021.
- Actual realized losses may differ materially from estimates for provisions, depending on a number of factors, including the length and severity of the impact from COVID-19.
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 Q3 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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