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Dec 31, 2019
Block Inc. Q4 2019 Earnings Report
Square, Inc. drove strong revenue growth and invested in long-term growth during the fourth quarter of 2019.
Key Takeaways
In the fourth quarter of 2019, Square's total net revenue grew 41% year over year to $1.31 billion, and gross profit grew 39% year over year to $527 million. Net income was $391 million, which included a gain of $373 million from the sale of Caviar. Excluding the gain on sale, net income was $17 million.
Total net revenue and gross profit grew 41% and 39% year over year, respectively.
Excluding Caviar, total net revenue and gross profit grew 46% and 42% year over year, respectively.
Cash App growth remained strong with total net revenue and gross profit increasing 147% and 104% year over year, respectively.
Cash App had approximately 24 million monthly active customers in December 2019, achieving 60% year-over-year growth.
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 provided guidance for Q1 2020 and full year 2020, reflecting strong revenue and gross profit growth.
Positive Outlook
- Total net revenue for Q1 2020 is expected to be $1.34 billion to $1.36 billion.
- Gross profit for Q1 2020 is expected to be $550 million to $560 million.
- Adjusted EBITDA for Q1 2020 is expected to be $95 million to $100 million.
- Adjusted EPS (diluted) for Q1 2020 is expected to be $0.16 to $0.18.
- Total net revenue for 2020 is expected to be $5.9 billion to $5.96 billion.
Challenges Ahead
- Net income (loss) per share for Q1 2020 is expected to be $(0.03) to $(0.01).
- Operating expense base will increase in the first quarter as investments are made in growth opportunities.
- Share-based compensation is expected to increase as a percentage of gross profit compared to 2019.
- Transaction-based costs and bitcoin costs for 2020 are expected to be $3.1 billion to $3.115 billion.
- The first quarter is typically the slowest in terms of sequential gross profit growth due to seasonality, driven primarily by the Seller business.
Revenue & Expenses
Visualization of income flow from segment revenue to net income