Jack Dorsey Block With $5.62B in Revenue, $44M in Bitcoin Profit in Q3
Jack Dorsey-led Block, a fintech company focused on Bitcoin, published its third-quarter earnings report on November 2, a profitable quarter that beat analysts' expectations.
The company had revenue of $5.62 billion in the third quarter of 2023, boosted by strong revenue growth from Cash App and Square, and a profit of $44 million due to price increases in recent months.
In the shareholder letter, Dorsey explained the company's focus and future plans, particularly with Square's third quarter key financial metrics. Dorsey said the company authorized a $1 billion stock buyback to offset a portion of the stock-based compensation.
In the year In the third quarter of 2023, Blok reported gross profit of $1.90 billion, up 21 percent year-over-year. On the other hand, mobile payment service CashUp reported gross profit of $984 million, up 27 percent year-on-year, while Square posted $899 million, a 15 percent increase.
Bitcoin revenue accounted for 43 percent of the $5.6 billion in revenue for the block. Fintech companies' third-quarter growth was helped by strong consumer demand and positive spending.
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Block Bitcoin's gross profit stood at $45 million, up 22 percent year-over-year. The company's Bitcoin gross margin stands at 2 percent of Bitcoin revenue. The firm said the rise in BTC revenue was fueled by an increase in the average market price of Bitcoin and the amount of Bitcoin sold to customers.
Block said it has not seen any impairment losses on its Bitcoin holdings since last quarter. In the year As of September 30, 2023, the carrying value of Block's investment in Bitcoin was $102 million, but its fair value based on observed market prices was $216 million, or $114 million more than its carrying value.
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