- Block reported a gross profit of $1.66 billion in 2022, representing a 40% increase from the previous year.
- Wall Street projected a $1.53 billion return for Block in 2022.
- Block’s stock jumped by 8% shortly after the quarterly report was released.
Block, the financial intermediary for peer-to-peer transactions, reported a gross profit of $1.66 billion in the past year. That represents a 40% increase, soaring beyond the $1.53 billion forecasted by Wall Street. However, the company posted a quarterly net loss of $114 million, translating to 19 cents per share.
According to reports, Block, formerly known as Square, announced that it ended 2022 with 51 million monthly transactions in the last month, December. The financial transactions company claimed an average of two of every three registered users used its flagship application, Cash App, every week.
As reported, Block’s Cash App business reported a gross profit of $848 million, rising by 64% year-on-year. Also, reaching 51 million transactions in December 2022 reflected a 16% increase, year-on-year.
For 2022, Block reported that its Cash App card generated over $750 million in gross profits, equivalent to 56% more than it accrued in 2021. Its Point-of-Sale (PoS) business during the same period raised $801 million, equivalent to a 22% growth on an annual basis.
The reported figures represented Block’s performance in the year 2022. However, the financial solution has picked up from where it stopped, gaining more ground since the beginning of the new year.
Before releasing the report, Block’s stock was up by more than 15% in 2023. Notwithstanding the conflict between Wall Street’s expectations and the realized figures, the stock value spiked by another 8%.
The market’s latest figures are early reactions to the report. A substantive trajectory in Block’s stock price would unfold after executive discussions slated for a later period. However, prevailing sentiment suggests a further push to the upside from the look of things.