The data: Block’s gross payment volume (GPV) reached $53.16 billion in Q4, per its shareholder letter. The 15% year-over-year (YoY) increase is down from 45% the same period a year ago. Q4 gross profits grew 40% YoY, slowing from 47% the prior year.
How we got here: Three factors contributed to Block’s Q4 performance.
What’s next? Block plans to be more judicious with spending and growth investments in 2023.
Block is putting a lot of focus on growing the Cash App ecosystem through products like Cash App savings and the Cash App debit card. The Cash App Card’s broad use for everyday spending is increasingly making it top of wallet for customers, Ahuja said. The firm wants to find more “adjacent financial services that complement one another,” said CEO Jack Dorsey—which may foreshadow future Cash App-centric solutions.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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