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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.
Block Inc.
Block Inc.
Block Inc. Revenue by Segment
Revenue by Segment
Transaction-Based Revenue
CapyFin.comSubscriptions & Services Revenue
CapyFin.comHardware Revenue
CapyFin.comBitcoin Revenue
CapyFin.comCash App Revenue
CapyFin.com 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