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Block Inc.
🇺🇸 NYSE:SQ
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•
Mar 31, 2020

Block Inc. Q1 2020 Earnings Report

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

Key Takeaways

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.

Total Revenue
$1.38B
Previous year: $489M
+182.4%
EPS
-$0.02
Previous year: $0.11
-118.2%
Gross Profit
$539M
Previous year: $397M
+35.7%
Cash and Equivalents
$1.96B
Previous year: $522M
+276.2%
Free Cash Flow
$95.2M
Previous year: $14.3M
+566.6%
Total Assets
$6B
Previous year: $4.4B
+36.4%

Block Inc.

Block Inc.

Block Inc. Revenue by Segment

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.

Positive Outlook

  • 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.

Challenges Ahead

  • 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.

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

View Block Inc.