Block (NYSE: SQ) announced its 2022 Q4 financial results on February 23, 2023. According to the announcement, total net revenue was down 0.7% (TTM, YoY). In addition, Block recorded operating loss and net loss of 624,352 million USD and 553,005 million USD, respectively (TTM). This was due to recording share-based compensation expenses of 1,071,278 million USD. Moreover, adjusted EBITDA was down 2.2% (TTM, YoY).
Looking at revenue growth by category, subscription and service-based revenue grew the most of up 68.0% (TTM, YoY). This was followed by transaction based revenue of up 19.0%. On the other hand, bitcoin revenue was down 29.0%.
Let’s look at the revenue growth of each segment among the subscription and service-based revenue. Square recorded the highest growth of up 95.7%, and Cash App was up 61.0% (TTM, YoY). Cash App accounts for 60.6% of total net revenue in 2022. On the other hand, Square accounts for 38.2% of total revenue. GPV was up 21.4% (TTM, YoY).
Net cash provided by operating activities was recorded as an inflow of 175,903 million USD, down 79.3% YoY (TTM). Free cash flow was recorded as a cash inflow of 1,401,599 million USD although it was recorded as a cash outflow in 2021.
The higher growth rates of Block’s segment revenues in this higher volatility business environment indicate the optimistic future outlook of this company.
Block, Inc. (NYSE: SQ) stock chart
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