Block grosses $1.18 billion in fourth quarter, up 47% year over year

The crypto-friendly technology company Block, Inc. digital payments (formerly known as Square) grossed $1.18 billion in the fourth quarter, representing 47% growth over the same period in 2020.

The company led by Bitcoin maxi Jack Dorsey has multiple branches of business, including Cash App, Square and the newly acquired buy now pay later (BNPL) firm Afterpay after the $29 billion deal was officially closed at the end of last month.

Block’s 2021 Q4 report was Posted on Feb. 24, and the company revealed significant gross profit increases in Cash App and Square, with each company generating $518 million and $657 million each, equating to YoY profits of 37% and 54%, respectively.

In total, the company generated $4.42 billion in gross profit in all of 2021, a YoY growth of 62% compared to 2020. The impressive numbers, however, require a pinch of salt, as Block’s net profit after expenses knocked for the fourth quarter. only $77 million ($166 million for all of 2021), indicating high operating costs for the company.

The company pointed to Cash App’s Cash Card and Square’s merchant ecosystem as key metrics behind fourth-quarter growth, noting that its Cash Card saw more than 13 million active users in December, with 38% of merchants having four or more Square users. used company products.

In 2022, Block also emphasized the importance of the Afterpay deal, as it will allow the company to significantly scale up its offerings and products this year. The company stated:

“On January 31, we completed our acquisition of Afterpay, a global ‘buy now, pay later’ (BNPL) platform. We believe this acquisition will advance Block’s strategic priorities for Square and Cash App by strengthening the connections between our ecosystems while delivering compelling financial products and services to consumers and merchants.”

Related Coinbase Earned $2.2 Billion in Transaction Fees in the Fourth Quarter

Block has expanded its presence in the crypto space of late, with Coin-Crypto reporting in mid-January that Cash App had integrated the Lightning Network to speed up BTC transfers, while Dorsey confirmed that Block was rolling out open-source Bitcoin mining systems.

After stepping down from Twitter in November, Dorsey is reportedly focused on scaling Block’s crypto initiatives.

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