Block's Cash App is a Certified Beast
$SQ In just five years, Block's Cash App has grown from accounting for 15% of the company's gross profit to 49% as of 2022.

• Cash App MAUs have grown 240% to 51 million over the same time period.
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Benjamin Tan's avatar
Cash App continues to surprise on the upside with gross profit strength and transaction velocity. $SQ earnings report last evening was better on the topline (gross profits) than bottomline; opex was elevated from all that hiring and Afterpay loan losses last year. But the gamechanger (for me) is how they are going to focus on Rule of 40 that takes SBC into account going forward.
Dissecting the Markets's avatar
I am really curious on whether Cash App is mainly a payment processor like Square or if there's more that goes into its profitability
Conor Mac's avatar
@dissectmarkets they do break it down quite well, but it does have traditional bank-like features (card, savings, P2P) and then also has rewards, the ability to buy and sell stocks and crypto, and some other things. It also gets tied into the Square business, linking up with their POS and other softwares.

Then you now how more commerce centric activity with Afterpay.
Karan Malhotra's avatar
Now do gross profit per share :)
Rihard Jarc's avatar
Still hasn't started with a real international push outside of US. Has captured the young demograf could be a very dangerous player for many banks...
Conor Mac's avatar
@rihardjarc Yea, longing for more insight into why they don't make the US version of Cash App available overseas... probably down to regulation, licences, etc.
Rihard Jarc's avatar
@investmenttalk They started with Spain. But they started with them buying a small fintech startup and using that brand instead of going straight up with the CashApp brand. Probably still learnings about the market and how it's different/similar to the US both in terms of regulations but also consumer behavior.



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