Block made a total of $4.42 billion in gross profit in 2021, a 62 percent increase year over year; however, net profit was only $77 million.
Block, Inc. (previously known as Square), a crypto-friendly digital payments software firm, reported $1.18 billion in gross earnings in Q4, up 47 percent from the same period in 2020.
The company, which is led by Bitcoin maxi, After a $29 billion acquisition, Jack Dorsey now has various company entities, including Cash App, Square, and the newly acquired buy now pay later (BNPL) firm Afterpay.
Block released its 2021 Q4 report on Feb. 24, revealing considerable gross profit increases across Cash App and Square, with each company making $518 million and $657 million, respectively, representing YoY gains of 37 percent and 54 percent.
In total, the corporation earned $4.42 billion in gross profit in 2021, representing a 62 percent increase over the previous year.
The statistics should be taken with a grain of salt, as Block’s net profit after expenses for Q4 was only $77 million ($166 million for all of 2021), implying high operational costs.
Cash App’s Cash Card and Square’s seller ecosystem were cited as important drivers of Q4 growth, with the Cash Card seeing over 13 million active users in December and 38% of sellers utilizing four or more Square business products.
Block also stressed the importance of the Afterpay arrangement for 2022, stating that it will allow the company to dramatically expand its capabilities and products this year.
“On January 31, we completed our acquisition of Afterpay, a global “buy now, pay later” (BNPL) platform. We believe this acquisition will further Block’s strategic priorities for Square and Cash App by strengthening the connections between our ecosystems as we deliver compelling financial products and services for consumers and merchants.”
Block has been beefing up its crypto presence of late, with Coinscreed reporting in mid-January that Cash App had integrated the Lightning Network to speed up BTC transfers, and Dorsey confirming that Block was rolling out open-source Bitcoin mining rigs.
Dorsey is understood to be primarily focused on scaling the Block’s crypto activities after stepping down from Twitter in November.