Quarterly Revenue Breakdown
Block, the fintech powerhouse steering towards Bitcoin integration, has outdone itself in the third quarter of 2023, hitting a revenue milestone of $5.62 billion.
This marks a robust increase, primarily driven by the stellar performances of their services, Cash App and Square. For the uninitiated, think of Cash App as your best friend that always has a few bucks to lend when you’re short, and Square as the handy tool that lets small businesses process payments without needing a bank.
Bitcoin Holdings Shine Bright
But wait, there’s more! Block also reported a tidy profit of $44 million just from its Bitcoin holdings, thanks to the price lifting itself like a kid on a sugar rush recently. Bitcoin’s volatility may send some people into a tizzy, but Block seems to be riding the wave perfectly.
Gross Profits: The Numbers Game
Financial metrics in the letter penned by Jack Dorsey, who’s not just a tech whiz but also a crypto fanatic, revealed a gross profit of $1.90 billion—an impressive 21% year-over-year increase. Everyone loves a profitable quarter, right?
To dive deeper:
- Cash App grossed $984 million (up 27% year-over-year)
- Square brought in $899 million (up 15% year-over-year)
Repurchasing Shares: Dorsey’s Strategy
To counter any equity dilution from share-based compensation—because who doesn’t want to retain a bit of control over their shares?—Block announced it would repurchase a whopping $1 billion in shares. Talk about a commitment to maintaining their value!
Bitcoin Revenue Insights
Of the $5.6 billion in overall revenue, a cool 43% stemmed from Bitcoin alone. That’s right, potential crypto-skeptics, it’s not just a fad! Furthermore, Bitcoin gross profit increased by 22% compared to last year, hitting $45 million, largely due to Block selling $2.42 billion in Bitcoin through Cash App.
Future Outlook and Stability
With the potential for even more growth looming on the horizon, Block’s stake in Bitcoin had a carrying value of $102 million but a fair value of $216 million at the end of September—good news for crypto enthusiasts looking for long-term viability in the market.
