Block’s profits in Q4 2021 have increased by 47% year over year, raking in $1.18 billion from Cash App and the Square ecosystem.
With investments surging into the blockchain industry over the past year, FinTech companies have been at the forefront of building platforms with cryptocurrency support for professional and casual investors.
According to the official report by Block, the company had significant success throughout 2021. The report’s financial metrics show that in the fourth quarter of 2021 Block’s Cash App raked in $518 million, going up by 37% year over year (YoY), while Square’s ecosystem profited by $657M, which was a 54% YoY increase.
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The total gross profits for the fourth quarter went up by 47% YoY, amounting to $1.18B.
Likewise, Block’s Cash Card had seen immense growth over the fourth quarter, with 13M monthly active users in December, and profits coming from Square’s ecosystem almost quadrupled compared to 2016.
With all the quarters of 2021 combined, the FinTech company raked in $4.42 billion in gross profit, going up by 62% YoY. The two main revenue streams Cash App and Square’s ecosystem shared similar growth over the year.
Cash App went up by 69% YoY, gaining $2.07 billion gross profit, while Square raked in $2.32B with a 54% year-over-year increase. Despite the striking gross profit numbers, the total net income of the company amounted to $166M, which is at its lowest compared to 2019 and 2020.
Not only that, Square mentioned its acquisition of Afterpay - an Australian FinTech company that works on a buy-now-pay-later (BNPL) business model, allowing customers to purchase products, and pay for them in parts every two weeks without any interest.
Due to the acquisition of Afterpay, according to the post, the company seeks to integrate the BNPL business model into Cash App. Also, with Cash App recently introducing the Lightning Network, customers will most likely be able to use Afterpay’s services with Bitcoin.
