Block, Inc. (NYSE: SQ) has posted its results for the fourth quarter and full year of 2022. The Fintech reports that total net revenue was $4.65 billion in the fourth quarter of 2022, up 14% year over year. Excluding Bitcoin revenue, revenue in the fourth quarter was $2.82 billion, up 33% year over year.
For the full year of 2022, total net revenue was $17.53 billion, down 1% year over year. Excluding Bitcoin revenue, revenue for the full year was $10.42 billion, up 36% year over year.
For the full year of 2022, Block “generated gross profit of $5.99 billion, up 36% year over year.” For the quarter, Block generated a gross profit of $1.66 billion up by 40% year over year.
Over the last year, the firm’s ecosystem model “helped drive resilience as we continued to serve a diverse base of global customers across a wide range of verticals, complementary products, and use cases.”
As noted in the update:
“Looking ahead to 2023 and beyond, we are focused on balancing growth and efficiency and will prioritize speed, agility, and accountability. This framework will ensure we remain customer-led while building a disciplined and durable business for the long term.”
As mentioned in the announcement:
“We delivered strong growth and profitability at scale during the fourth quarter of 2022. Gross profit grew 40% year over year to $1.66 billion. Excluding our BNPL platform, gross profit was $1.46 billion, up 24% year over year. Our Square ecosystem delivered gross profit of $801 million, an increase of 22% year over year and, excluding our BNPL platform, 7% year over year. Excluding gross profit from Paycheck Protection Program (PPP) loan forgiveness and our BNPL platform,
Square gross profit “increased 17% year over year.”
Their Cash App ecosystem “delivered gross profit of $848 million, an increase of 64% year over year and, excluding their BNPL platform, an increase of 45% year over year. Adjusted EBITDA was $281 million.”
As covered, Block, Inc. is “a global technology company with a focus on financial services. Made up of Square, Cash App, Spiral, TIDAL, and TBD, we build tools to help more people access the economy.”
Square helps sellers “run and grow their businesses with its integrated ecosystem of commerce solutions, business software, and banking services.”
With Cash App, anyone “can easily send, spend, or invest their money in stocks or Bitcoin. Spiral builds and funds free, open-source Bitcoin projects.”
Artists use TIDAL “to help them succeed as entrepreneurs and connect more deeply with fans.”
TBD is “building an open developer platform to make it easier to access Bitcoin and other blockchain technologies without having to go through an institution.”
While Block missed on earnings, the top line and gross profit topped estimates sufficiently to drive shares higher. In after market trading shares of Block pushed higher and are poised to do the same this AM.