The crypto-friendly digital payment technology company Block, Inc. (formerly known as Square) posted a gross profit of $1.18 billion in the fourth quarter of 2021, a 47% growth over the same period in 2020.
The firm led by Bitcoin maximalist Jack Dorsey has multiple business divisions, including Cash App, Square and newly acquired buy now pay later (BNPL) firm Afterpay.after the $29 billion deal officially closed late last month.
Block’s fourth quarter 2021 report public on February 24, and The company revealed significant increases in gross earnings in Cash App and Square, each generating $518 million and $657 million, up 37% and 54% year-over-year, respectively..
In total, the company generated gross profit of $4.42 billion in the full year of 2021, which represents a year-over-year growth of 62% compared to 2020. The impressive numbers require a pinch of salt, however, as Block’s earnings after expenses for the fourth quarter amounted to just $77 million ($166 million for the full year of 2021), suggesting hefty operating costs for the company.
The company pointed to the Cash App cash card and Square seller ecosystem as key metrics behind fourth-quarter growth.noting that the cash card saw more than 13 million active users in December with 38% of sellers using four or more Square business products.
Looking ahead to 2022, Block also highlighted the importance of the agreement with Afterpay, as it will allow the company to significantly increase its offers and products this year.. The company stated:
“On January 31, we completed our acquisition of Afterpay, a global “buy now, pay later” (BNPL) platform. We believe this acquisition will advance Block’s strategic priorities for Square and Cash App by strengthening the connections between our ecosystems while offering compelling financial products and services to consumers and merchants.”
Block has been increasing its presence in the cryptocurrency space of late; Cointelegraph reported in mid-January that Cash App had integrated the Lightning Network to speed up BTC transfers, while Dorsey confirmed that Block was deploying open source Bitcoin mining systems..
After leave twitter in November, Dorsey is said to be primarily focused on scaling Block’s cryptocurrency initiatives.
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