Block and Coinbase post positive results for Q4 2021
Block and Coinbase post positive results for Q4 2021
Crypto

Block and Coinbase post positive results for Q4 2021

By Stefania Stimolo - 28 Feb 2022

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Both Block, formerly Square, which is Jack Dorsey’s payments giant, and the popular crypto-exchange Coinbase, have published positive results for their last quarter of 2021 aka Q4. Both companies revealed their numbers and data through a letter to shareholders

Block reports higher year-on-year results for Q4 2021

Block, which mainly includes Square, Cash App, Spiral, TIDAL, TBD54566975, has published its letter to shareholders with increasing results for Q4 2021

“Our Q4 and full-year 2021 earnings are now available”.

Overall, Block’s total net revenue for Q4 2021 was $4.08 billion, up 29% year-over-year. Excluding Bitcoin (BTC) revenue, the company’s total net revenue was $2.12 billion, up 51% year-over-year.

Not only that, Block exceeded expectations, its quarterly gross profit was $1.18 billion, a sharp 47% increase year-on-year. Individually, the company’s flagship peer-to-peer payment service, Cash App, generated gross profit of $518 million, up 37% year-over-year. The Square ecosystem also generated gross profit of $657 million, up 54% year-over-year.

As we are closing in on the year 2021, it can be further added that Block’s gross profit for the year was $4.42 billion, an increase of 62% year-on-year. 

Block
Block records + 62% of profits year on year

Coinbase, positive results for the last quarter 2021

The famous crypto-exchange Coinbase also released its letter to shareholders to inform them about its Q4 2021 financial results. Here is the announcement on Twitter:

“UPDATE: Q4 and FY’21  financial results are in. Check out our letter to shareholders here”.

Again, the numbers seem to have exceeded analysts’ expectations, and not by a small margin. In fact, Coinbase’s net sales were $2.49 billion for Q4 FY’21, which is a significant increase over analyst estimates of around $2 billion. 

Specifically, this is $840 million in net income, and $1.2 billion in adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the October-December 2021 period. 

Coinbase and its forecast for 2022

Coinbase CFO Alesia Haas said the company is “anticipating massive industry growth to continue over the long-term. And this really informs the backdrop of our 2022 investment plan”.

Not only that, the CFO acknowledged that the first quarter of 2022 had a softer trend than the previous quarter in terms of volume due to lower cryptocurrency prices and lower volatility. Haas predicted as follows:

“And so it is too early in the year to take a very precise view. This informs our approach where we said we will be transparent with you all. But we’ve provided for an average annual retail MTU [monthly transacting user] range that spans from 5 to 15 million for full year 2022″.

Stefania Stimolo

Graduated in Marketing and Communication, Stefania is an explorer of innovative opportunities. She started out as a Sales Assistant for e-commerce, and in 2016 she began to develop a passion for the digital world, initially in the Network Marketing sector, where she discovered and became passionate about the ideals behind Bitcoin and Blockchain technology, which lead her to work as a copywriter and translator for ICO projects and blogs, and organize introductory courses.

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