On May 6, Square released its filings for the first quarter of 2020. The filings publicized revenue for Square’s Cash App, a majority of which came from Bitcoin.
The numbers for Q1 and Bitcoin’s role
$306 million of Cash App’s $528 million revenue for the first quarter of the year came from Bitcoin.
Despite those numbers, Bitcoin composed a small fraction of Cash App’s profit, only $7 million of $183 million total profit. The company explained why it separated Bitcoin revenue as being more of a core mission:
“We deduct bitcoin revenue because our role is to facilitate customers’ access to bitcoin. When customers buy bitcoin through Cash App, we only apply a small margin to the market cost of bitcoin, which tends to be volatile and outside our control.”
Changes over the year amid COVID-19
Cash App reported a 115% increase in profit year-over-year. In an investor call on May 6, a member of Square’s team credited “efficient new customer acquisition,” which usually translates to good marketing and ease of use.
Source: Square Q1 SEC Filing
The numbers for investors were less rosey, with earnings before interest, taxes, depreciation, and amortization slipping from $119 million in Q4 to $9 million this quarter.
Dorsey praised the company’s “agility” amid this economic crisis. His colleague noted “We are encouraged by Cash App’s performance in April.”