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Mar 31, 2021
Block Inc. Q1 2021 Earnings Report
achieved strong growth at scale, driven by both Seller and Cash App ecosystems
Key Takeaways
Block Inc. reported strong growth in Q1 2021, with total net revenue up 266% year over year to $5.06 billion and gross profit up 79% year over year to $964 million. The Cash App ecosystem delivered gross profit growth of 171% year over year, and the Seller ecosystem saw gross profit increase by 32%.
Total net revenue was $5.06 billion, up 266% year over year.
Gross profit was $964 million, up 79% year over year.
Cash App generated gross profit of $495 million, up 171% year over year.
Seller ecosystem generated gross profit of $468 million, up 32% year over year.
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
For the second quarter of 2021, Square anticipates an increase of approximately $120 million in non-GAAP product development, sales and marketing, and general and administrative expenses compared to the first quarter of 2021. Additionally, the company expects transaction and loan loss expense to increase by approximately $40 million compared to the first quarter of 2021.
Positive Outlook
- Anticipates prioritizing investments in Cash App and Seller ecosystems
- Expects non-GAAP product development, sales and marketing, and general and administrative expenses, in aggregate, to increase by approximately $120 million compared to the first quarter of 2021
- Intends on continuing to invest in building out teams, including attracting, hiring, and retaining talented employees
- Businesses are well-positioned to help customers adapt in a dynamic environment
- Believes two-year compound annual growth rates from 2019 through 2021 will help reflect underlying gross profit trends in each ecosystem.
Challenges Ahead
- Notes that the variability of potential outcomes related to the growth of business and the macro environment, actual realized losses may differ materially from estimates for provisions.
- Expects transaction and loan loss expense to increase by approximately $40 million compared to the first quarter of 2021.
- Has not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP operating expenses or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as share-based compensation expense.
- In the second quarter of 2021, Cash App will lap strong gross profit growth of 167% year over year in the second quarter of 2020 as government disbursements began in April 2020.
- The impact and severity of COVID-19 are uncertain.
Revenue & Expenses
Visualization of income flow from segment revenue to net income