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Sep 30, 2021
Block Inc. Q3 2021 Earnings Report
Delivered strong growth at scale.
Key Takeaways
In the third quarter of 2021, Block Inc. reported a total net revenue of $3.84 billion, a 27% increase year-over-year. Gross profit was $1.13 billion, up 43% year-over-year.
Gross profit grew 43% year over year to $1.13 billion.
Seller ecosystem gross profit was $606 million, up 48% year over year.
Cash App ecosystem delivered gross profit of $512 million, an increase of 33% year over year.
Entered into an agreement to acquire Afterpay, a global buy now, pay later platform.
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 fourth quarter of 2021, the company expects non-GAAP product development, sales and marketing, and general and administrative expenses, in aggregate, to increase by approximately $115 million compared to the third quarter of 2021. In the fourth quarter of 2021, the company expects transaction and loan loss expenses to increase by approximately $5 million compared to the third quarter of 2021.
Positive Outlook
- Seller ecosystem is expected to deliver strong gross profit growth year over year and on a two-year CAGR basis in October.
- Seller GPV is expected to be up 42% year over year in October, and the two-year CAGR is expected to be up 24%.
- Cash App is expected to deliver strong gross profit growth year over year and on a two-year CAGR basis in October.
- Growth in Cash App will be driven by growth in monthly actives.
- Growth in Cash App will be driven by engagement across our ecosystem, and inflows into Cash App.
Challenges Ahead
- GPV growth trends continued to vary by region, product, and vertical, depending primarily on differences in the timing and phases of reopenings.
- The company expects non-GAAP product development, sales and marketing, and general and administrative expenses, in aggregate, to increase by approximately $115 million compared to the third quarter of 2021.
- The aggregate increase of approximately $1.16 billion for such expenses in the full year of 2021 as compared to the full year of 2020, representing growth of 55% year over year.
- The company expects transaction and loan loss expenses to increase by approximately $5 million compared to the third quarter of 2021.
- Actual realized losses may differ materially from estimates for provisions, depending on a number of factors, including the length and severity of the impact from COVID-19.