Crypto-friendly digital payments tech firm Block, Inc. (formerly known as Square) posted $1.18 billion worth of gross profit in Q4, representing a growth of 47% over the same period in 2020.
The firm, led by Bitcoin maxi Jack Dorsey, has multiple business arms including Cash App, Square and the freshly acquired buy now pay later (BNPL) firm Afterpay after the $29 billion deal officially closed at the end of last month.
Block’s 2021 Q4 report was posted on Feb. 24, and the firm revealed significant gross profit increases across Cash App and Square, with each firm generating $518 million and $657 million a piece to mark YoY gains of 37% and 54%, respectively.
In total, the company generated $4.42 billion worth of gross profits for the entirety of 2021, marking a YoY growth of 62% compared to 2020. The impressive figures do require a pinch of salt, however, as Block’s net profit after expenses for Q4 tallied just $77 million ($166 million for all of 2021) suggesting hefty operating costs for the firm.
The company pointed to Cash App’s Cash Card and Square’s seller ecosystem as key metrics behind the Q4 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.
Moving forward in 2022, Block also highlighted the significance of the Afterpay deal as it will enable the firm to significantly scale up its offerings and products this year. The firm stated:
“On January 31, we completed our acquisition of Afterpay, a global “buy now, pay later” (BNPL) platform. We believe this acquisition will further Block’s strategic priorities for Square and Cash App by strengthening the connections between our ecosystems as we deliver compelling financial products and services for consumers and merchants.”
Block has been ramping up its presence in the crypto space of late, with Cointelegraph reporting in mid-January that Cash App had integrated the Lightning Network to speed up BTC transfers, while Dorsey confirmed that Block was rolling out open-source Bitcoin mining systems.
After stepping down from Twitter in November, Dorsey is reportedly said to be mainly focused on scaling the Block’s crypto initiatives.