Block Inc, (NYSE: SQ) reported its Q1 results for the fiscal year 2022 after the market closed on Thursday. The company reported a gross revenue of $1.29 billion (up 34% YOY) with a net loss of -$204 million.
The stock was up 6% during after hours following the announcement after closing at -10% during the normal trading hours.
The company generated gross profit of $1.29 billion, up 34% year over year. Cash App generated gross profit of $624 million, up 26% year over year. Square generated gross profit of $661 million, up 41% year over year. On January 31, SQ completed the acquisition of Afterpay, a global “buy now, pay later” (BNPL) platform. Block also allocated 50% of Afterpay revenue and gross profit to each of Square and Cash App.
Company’s statement on the Net loss:
The following items affected net income (loss) per share during the respective periods. In the first quarter of 2022, we recognized an unrealized gain of $50 million driven by the revaluation of equity investments, as well as Afterpay-related transaction charges of $42 million of one-time deal and integration-related expenses, $31 million of amortization of acquired intangible assets, and $66 million of one-time accelerated stock-based compensation. In the fourth quarter of 2021, we recognized a loss of $6 million driven by the adjustment to the revaluation of equity investments. In the third quarter of 2021, we recognized a loss of $7 million driven by the adjustment to the revaluation of equity investments as well as a $6 million bitcoin impairment loss. In the second quarter of 2021, we recognized a $77 million gain on our equity investments and a $45 million bitcoin impairment loss. In the first quarter of 2021, we recognized a loss of $29 million related to the mark-to-market valuation of our investment in DoorDash, as well as a $20 million bitcoin impairment loss.
Block, Inc. (NYSE: SQ) is a global technology company with a focus on financial services. Made up of Square, Cash App, Spiral, TIDAL, and TBD, we build tools to help more people access the economy. Square helps sellers run and grow their businesses with its integrated ecosystem of commerce solutions, business software, and banking services. With Cash App, anyone can easily send, spend, or invest their money in stocks or Bitcoin. Spiral builds and funds free, open-source Bitcoin projects. Artists use TIDAL to help them succeed as entrepreneurs and connect more deeply with fans. TBD is building an open developer platform to make it easier to access Bitcoin and other blockchain technologies without having to go through an institution.