Shulou(Shulou.com)11/24 Report--

Beijing time on February 24 morning news, the United States mobile payment leading company Block (formerly known as Square) today announced the company's fiscal year 2022 fourth quarter and full-year results.

According to the report, the total net income of Block in the fourth quarter was $4.651 billion, up 14% from $4.079 billion in the same period last year. The net loss attributable to common shareholders was $114 million, compared with a net loss of $77 million for common shareholders in the same period last year. Diluted loss per share attributable to common shareholders was $0.19, compared with diluted earnings per share attributable to common shareholders of $0.17 in the same period last year.

Block's adjusted diluted earnings per share fell short of Wall Street analysts' expectations in the fourth quarter, but revenue and gross profit beat expectations, sending its shares up more than 6 per cent in after-hours trading.

Summary of fourth quarter results: for the quarter ended December 31, 2022, net loss attributable to Block common shareholders was $114 million, compared with a year-on-year net loss of $77 million for common shareholders, and diluted loss per share for common shareholders was $0.19, compared with diluted earnings per share for common shareholders of $0.17 for the same period last year.

Excluding certain one-time items (not in accordance with GAAP), Block's adjusted diluted net income for the fourth quarter was $134 million, compared with $142 million a year earlier; adjusted diluted earnings per share were $0.22, compared with $0.27 a year earlier, down from a year earlier, which failed to meet analysts' expectations. On average, 32 analysts had expected Block's fourth-quarter earnings per share to reach $0.30, according to Yahoo Finance.

Block's fourth-quarter net revenue was $4.651 billion, up 14% from $4.079 billion a year earlier, beating analysts' expectations. On average, 27 analysts had expected Block's fourth-quarter revenue to reach $4.6 billion, according to Yahoo Finance. Excluding bitcoin revenue, Block's fourth-quarter revenue was $2.82 billion, an increase of 33 per cent one day.

By business type:-Block's fourth-quarter transaction-based revenue was $1.475 billion, compared with $1.309 billion a year earlier. Of this total, Cash App's transaction-based revenue was $122 million, compared with $104 million a year earlier, while Square's transaction-based revenue was $1.353 billion, compared with $1.205 billion a year earlier.

-Block's fourth-quarter revenue from subscriptions and services was $1.307 billion, compared with $772 million a year earlier. Of this total, Cash App's revenue from subscription and services was $901 million, compared with $487 million a year earlier, while Square's revenue from subscription and services was $368 million, compared with $230 million a year earlier.

-Block's fourth-quarter hardware revenue was $35.7 million, compared with $35.9 million a year earlier. Block's fourth-quarter hardware revenue came all from Square's revenue.

-Block's fourth-quarter bitcoin revenue was $1.833 billion, compared with $1.962 billion a year earlier. All of Block's fourth-quarter bitcoin revenue came from Cash App.

Block's fourth-quarter gross profit was $1.66 billion, compared with $1.182 billion a year earlier, up 40% from a year earlier, beating Wall Street analysts' average expectations of $1.53 billion. Of this total, Square's gross profit was $801 million, an increase of 22% compared with the same period last year. The gross profit of App was $848 million, an increase of 64% over the same period last year.

Block posted an operating loss of $135 million in the fourth quarter, compared with an operating loss of $54.6 million a year earlier. Excluding certain one-time items (not in accordance with GAAP), Block posted an adjusted operating loss of $31.9 million in the fourth quarter, compared with an adjusted operating loss of $22.6 million in the same period a year earlier.

Block's total operating expenses were $1.795 billion in the fourth quarter, compared with $1.237 billion a year earlier. Of this total, product development expenditure was $605 million, compared with $396 million in the same period last year; sales and marketing expenditure was $540 million, compared with $485 million in the same period last year; general and administrative expenses were $452 million, compared with $299 million in the same period last year; equity incentive expenditure was $51.3 million, compared with $2920 in the same period last year. M & A-related expenses, integration and other expenses were $40.7 million, compared with $20.8 million in the same period last year; depreciation and amortization expenses were $15.6 million, compared with $8.3 million in the same period last year; and property and equipment disposal losses were $800000, compared with $400000 in the same period last year. Excluding certain one-time items (not in accordance with GAAP), Block's adjusted total operating expenses were $1.399 billion in the fourth quarter, compared with $1.005 billion in the same period a year earlier.

Block's adjusted EBITDA (earnings before interest, tax, depreciation and amortization) was $281 million in the fourth quarter, compared with $184 million in the same period a year earlier.

Total payments made by Block in the fourth quarter (GPV) were $53.2 billion, compared with $46.3 billion in the same period last year.

At the end of the fourth quarter, Block had $7.5 billion in available liquidity, including $6.9 billion in cash, cash equivalents, restricted cash and tradable debt securities investments, and $600 million in liquidity that could be withdrawn from revolving credit facilities.

Summary of full-year results: for the entire fiscal year 2022, Block's total net revenue was $17.532 billion, compared with $17.661 billion in fiscal 2021, slightly higher than analysts' expectations. On average, 40 analysts had expected Block's full-year revenue to reach $17.51 billion, according to Yahoo Finance.

Block posted a full-year net loss of $553 million, compared with a net profit of $159 million in fiscal 2021. Block's full-year net loss attributable to common shareholders was $541 million, compared with a net loss of $166 million attributable to common shareholders in fiscal 2021, and diluted loss per share attributable to common shareholders was $0.93, compared with diluted earnings per share attributable to common shareholders of $0.33 in fiscal 2021.

Excluding some one-time items (not in accordance with GAAP), Block's adjusted diluted earnings per share for the full year were $1.00, compared with $1.28 in fiscal 2021, which fell short of analysts' expectations. On average, 32 analysts had expected Block to earn $1.07 a share for the full year, according to data provided by Yahoo Finance.

Performance outlook: Block says its gross profit grew by 33 per cent year-on-year in January and February 2023. Block expects non-GAAP operating expenses to reach $1.43 billion in the first quarter of fiscal 2023, an increase of $30 million compared to the fourth quarter of fiscal 2022.

For the entire fiscal year 2023, Block expects its adjusted EBTIDA to reach $1.3 billion and an adjusted operating loss of $150 million.

Stock price response:

Block shares rose $1.21, or 1.66%, to $74.15 in regular trading on the New York Stock Exchange. Block shares rose another $4.76, or 6.42 per cent, to $78.91 in after-hours trading as of 05:24 EDT on the 23rd (06:24 Beijing time on the 24th). In the past 52 weeks, the price of Block has been as high as $149.00 and as low as $51.34.

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