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Block $SQ Q1 2023 Earnings Analysis
Net revenue: $4.99 billion +26% YoY

Gross profit: $1.71 billion +32% YoY

Operating Income: -$6 million vs -$227 million YoY

Gross Payment Volume: $51.12 billion +17% YoY

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Cash App

Revenue: $3.27 billion +33% YoY

Gross Profit: $931 million +49% YoY

Inflows: $61 billion +27% YoY

Monetization rate: 1.41% excluding gross profit contributions BNPL platform

GPV: $4.90 billion +24% YoY

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Square

Revenue: $1.67 billion +15% YoY

Gross Profit: $770 million +16% YoY

GPV: $46.22 billion +17% YoY

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Operating expenses: $1.72 billion +13% YoY

Main driver being product development expenses $627 million +37% YoY

Sales & Marketing and General & Admin both down YoY

Transaction, loan, and consumer receivables losses $128 million +40% YoY

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Block Investment framework

Anchored on three principles focusing on customer retention and growth, accounting for ongoing business costs, and using industry standard conventions

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Overall

A really good quarter from $SQ

Cash App growing gross profit by 49% is the shining light

Free cash flow of $262 million up 39% YoY and growing faster than gross profit

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