The Yahoo Finance Live team discusses a mixed earnings report for Block.
Video Transcript
INES FERRE: Block fourth quarter earnings just came through. And I have the numbers here for you. Fourth quarter net revenue, that came in at $4.65 billion, essentially in line or a little better than what the Street had been expecting. The expectations were for $4.57 billion. But taking a look at its adjusted earnings per share for the fourth quarter, this came in at $0.22 a share. The Street had been expecting $0.28 a share. So that was a miss. And another miss here was fourth quarter payment volume. That came in at $53.16 billion. The Street had been expecting $55.22 billion. So a miss when it comes to payment volume.
2 some of the elements within this report as well for a household app name in Cash App, Cash App generated gross profit of $848 million. That was up 64% year over year for the fourth quarter. And then additionally, in 2022 on a whole, the company did mention that 44% of Square’s gross profit actually came from sellers that used four or more monetized products, which is an improvement of more than 15 points compared to three years ago.
But it’s really coming back to some of the Cash App growth here, growing the network there, ending the year with 51 million monthly transacting actives in December, with two out of three transacting each week on average. So that means you folks out there are certainly using this app quite a bit and with some frequency. Just make sure you put the coffee emoji in there if you’re sending money to anybody.
INES FERRE: And Cash App generated $35 million of Bitcoin gross profit in the fourth quarter. Also want to mention that the fourth quarter for Block’s Bitcoin revenue, that came in at $1.83 billion. The estimate was for 1.79 billion, so a bit of a beat there.
