Block (NYSE: SQ) announced its 2022 Q1 financial results on May 5, 2022. According to the announcement, total net revenue was up 28% (YoY, 3 months). Meanwhile, Block recorded an operating and net losses of 227 million USD and 207 million USD, respectively. Among Block’s operating and net losses, share-based compensation accounts for 275 million USD. In addition, adjusted EBITDA was 195 million USD (down 17%, YoY, 3 months).
Looking at growth of each segment, as for Square, subscription and services revenue recorded the highest growth of up 133%. It was followed by hardware revenue of up 30%. For Cash App, subscription and services revenue also showed the highest growth of up 43%.
In this regard, the subscription and services revenue still accounts for less than 25% of the total net revenue. However, its high growth rate may contribute to stabilization of Block’s earning structure in the future.
Block spent a total of 986 million USD on product development and sales and marketing. It accounts for 25% of total net revenue. Currently, Block is accelerating its overseas expansion. Under such circumstances, Block seems to be actively making up-front investments to expand its market share.
Block, Inc. (NYSE: SQ) stock chart
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