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Jun 30, 2020
Block Inc. Q2 2020 Earnings Report
Achieved strong growth in Cash App and managed Seller ecosystem during COVID-19 pandemic.
Key Takeaways
In Q2 2020, Block Inc. reported a 64% year-over-year increase in total net revenue, reaching $1.92 billion, and a 28% increase in gross profit, amounting to $597 million. Cash App's gross profit surged by 167% year-over-year, while the Seller ecosystem's gross profit decreased by 9%.
Total net revenue grew 64% year over year to $1.92 billion.
Gross profit grew 28% year over year to $597 million.
Cash App gross profit increased 167% year over year.
Seller ecosystem gross profit decreased 9% 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
Square anticipates prioritizing investments in Cash App and Seller ecosystems for attractive long-term returns, with increased sales and marketing spend expected in Q3 2020.
Positive Outlook
- Focus on Cash App customer acquisition and product velocity.
- Investment in new Cash App customer acquisition through peer-to-peer payments and creative marketing.
- Continued identification of opportunities to launch new products and expand Cash App's utility.
- Increase in sales and marketing spend for Seller ecosystem in the second half of 2020.
- Intended investments include a global brand awareness campaign and hiring for sales and account management teams.
Challenges Ahead
- Non-GAAP product development, sales and marketing, and general and administrative expenses expected to increase by at least $100 million in Q3 2020 compared to Q2 2020.
- Significant majority of expense increase related to sales and marketing investments for new customer acquisition.
- Non-GAAP product development, sales and marketing, and general and administrative expenses expected to be flat to slightly down in Q4 2020 compared to Q3 2020.
- Transaction and loan loss expenses anticipated to remain volatile in future quarters.
- Actual realized losses may differ materially from estimates for provisions due to the variability of potential outcomes related to the macro environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income