Block Inc. Q4 2023 Earnings Report
Key Takeaways
Block Inc. reported a 24% increase in total net revenue to $5.77 billion for Q4 2023. Gross profit grew by 22% year-over-year to $2.03 billion. Cash App's gross profit increased by 25% year-over-year to $1.18 billion, and Square's gross profit increased by 18% year-over-year to $828 million. Net income attributable to common stockholders was $178 million, and Adjusted EBITDA was $562 million, up 2x year over year.
Gross profit grew 22% year over year to $2.03 billion.
Cash App's gross profit increased 25% year over year to $1.18 billion.
Square's gross profit increased 18% year over year to $828 million.
Adjusted EBITDA increased 2x year over year to $562 million.
Block Inc.
Block Inc.
Block Inc. Revenue by Segment
Forward Guidance
Block provided Q1 2024 outlook with gross profit expected to be between $2.00B and $2.02B, representing a 17% year-over-year growth. Adjusted EBITDA is projected to be between $570M and $590M, with a margin of 29%. Adjusted Operating Income is expected to be between $225M and $245M, with a margin of 12%.
Positive Outlook
- Gross Profit $2.00B to $2.02B
- YoY Growth (midpoint) 17%
- Adjusted EBITDA $570M to $590M
- % Margin (midpoint) 29%
- Adjusted Operating Income $225M to $245M
Challenges Ahead
- Guidance does not assume any additional macroeconomic deterioration, which could impact results
- Share-based compensation expense to decrease slightly quarter over quarter on a dollar basis.
- Uncertainty regarding reconciling items such as share-based compensation expense.
- Material changes to reconciling items could have a significant effect on future GAAP results.
- Adjusted Operating Income margin is defined by dividing Adjusted Operating Income over a given period by gross profit over the same period.
Revenue & Expenses
Visualization of income flow from segment revenue to net income