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.
— Block Investor Relations (@BlockIR) February 24, 2022
“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.
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:
— Coinbase (@coinbase) February 24, 2022
“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″.