Block, Inc. Q4 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

  • Cash App Growth: Cash App had over 36 million monthly active customers in December 2020, a 50% YoY increase. Gross profit for the quarter was $377 million, up 162% YoY.
  • Cash App Engagement: Gross profit per Cash App user rose 70% YoY to $41 in Q4. Bitcoin volumes per customer more than 2.5x compared to Q4 2019, and more than 1 million customers bought Bitcoin for the first time in January 2021 alone.
  • Cash App Innovation: Expanded features such as Bitcoin Boost (earn Bitcoin with Cash Card purchases), paycheck deposit-locked Boosts, and satoshi denomination option. Boost users spent 2x more than non-Boost users.
  • Seller Ecosystem Growth: Seller GPV in Q4 grew 6% YoY; gross profit was $427 million, up 13% YoY. Mid-market sellers drove strong performance, with their gross profit up 27% YoY—2x overall Seller growth.
  • Omni-channel Strength: Now represents more than 50% of Seller GPV, up from one-third two years prior. Online channel GPV grew over 50% YoY.
  • Profitability: Adjusted EBITDA was $185 million in Q4. This includes $43 million recovered from reduced transaction losses.
  • Q1 Trends: January 2021 Cash App GP grew 164% YoY, February estimated at 130%. Seller GPV grew 5% YoY in January, 2% in early February, tempered by weather disruptions.

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Operator: Good day, ladies and gentlemen, and welcome to the Square Fourth Quarter 2020 Earnings Conference Call. I would now like to turn the call over to your host, Jason Lee, Head of Investor Relations. Please go ahead. Jason Lee: Hi, everyone. Thanks for joining our fourth quarter 2020 earnings call. We have Jack and Amrita with us today. We will begin this call with some short remarks before opening the call directly to your questions. During Q&A, we will take questions from our customers in addition to questions from conference call participants. We would also like to remind everyone that we will be making forward-looking statements on this call. Actual results could differ materially from those contemplated by our forward-looking statements. Reported results should not be considered as an indication of future performance. Please take a look at our filings with the SEC for a discussion of the factors that could cause the results to differ. Also, note that the forward-looking statements on this call are based on information available to us as of today's date. We disclaim any obligation to update any forward-looking statements, except as required by law. During this call, we'll provide preliminary gross profit growth results for the months of January-February. These represents our gross profit, gross results for January and current estimate for February performance. These numbers are not final as we have not yet closed our accounting financials for the month of February,

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