Block (NYSE: SQ) announced its 2023 Q2 financial results on August 23, 2023. According to the announcement, total net revenue was up 25.1% (YoY, 3 months). As for revenues by accounting items, Bitcoin revenue grew the most at up 33.9%. It was followed by subscription and service-based revenue of up 33.5%.
Conversely, total cost of revenue was up 25.1% (YoY, 3 months). Gross margin was recorded as 33.7% (3 months; +34 bp YoY). Block continued to record an operating loss and net loss this quarter. Operating loss amounted to 132 million USD in 2023 Q2 (3 months; 214 million USD in 2022 Q2). Also, the net loss was 123 million USD (208 million USD in 2022 Q2). On the other hand, adjusted EBITDA recorded the significant growth of up 105.2% (YoY, 3 months).
Looking at revenue growth by segment, Cash App recorded the highest growth of up 35.6% (YoY, 3 months). Meanwhile, Square was up 11.8%. Segment gross margins were 27.2 % for Cash App and 46.0% for Square (3 months). However, 29.0% of Cash App’s revenue was from subscription and service-based revenue. Thus, the growth of the Cash App segment can contribute to the stabilization of Block’s total revenue.
Net cash provided by operating activities was up 155.2% (6 months, YoY). On the other hand, free cash flow was down 32.2%. In 2022 Q2, the Block acquired net cash via business combination as well as sale of marketable debt securities from customer funds. These factors contributed to the increase of free cash flow in Q2 2022.
Block, Inc. (NYSE: SQ) stock chart
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