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Square parent company Block Inc. missed Q1 earnings and revenue estimates attributable to a significant decline in bitcoin revenue amid a downward trend in the crypto market.
Source: Block
SQ up 5.44%, PYPL down -0.74%, pre-market trading
Earnings stood at 18 cents per share compared to analysts’ estimates of 20 cents per share. Revenue was $3.96 billion, falling 22% from a year earlier.
Block’s bitcoin revenue was $1.73 billion in Q1 of 2022, a major fall of 51% from a year-ago quarter. Bitcoin gross profit was $43M, accounting for nearly 3% of bitcoin revenue.
Square, the merchant seller segment, had $661M in gross profit, a 41% jump from a year ago, as Cash App had $624M of gross profit, an increase of 26%.
On a positive note, subscription revenue rose to $231 million in Q1, excluding PPP loan forgiveness revenue, an increase from $112M a year ago.
The company also reported $54M in Afterpay subscription revenue for Square. Cash App reported $622M in subscription and services revenue, a 43% increase from a year ago.
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