Menu
Block Inc. (SQ): $62.14
Market Cap: $38.26B
Enterprise Value: $37.12B
Block Inc. (SQ) is a fintech company founded in 2009 by the co-founder and former CEO of Twitter, Jack Dorsey, and Jim McKelvey (who now serves as an independent director of the Federal Reserve Bank in St. Louis). The company’s first product was Square – a point-of-sales system that enabled businesses to accept payments by connecting a small device to their smartphones or tablets. In 2013, Block released CashApp (then known as SquareCash), a mobile payment services company which has expanded to offer savings accounts, debit cards, personal loans, tax filing services, and the opportunity to invest in stocks and Bitcoin. CashApp has become Block’s biggest driver of growth in recent years, drawing in a younger crowd compared to more legacy fintech companies like Paypal (PYPL). In addition to these two services, Block also owns Tidal (a subscription based music streaming service) and a few other fintech companies centered around cryptocurrency and the blockchain.
When it comes to financial results, Block has occasionally struggled with profitability. The company actually has net cash on the balance sheet and has been steadily growing revenue over the last few years. Q2 2024 (ended June 30, 2024) results were positive – total revenue for the quarter was $6.15 billion, which was up from $5.53 billion in Q2 2023. The company also turned profitable this quarter, recording net income of $195 million, which compared to a net loss of $102 in Q2 2023, but still down sequentially from the $472 million of net income recorded in Q1 of this year. The biggest drivers of growth and contributors to revenue were still CashApp and Square – which recorded $1.3 billion and $923 million in gross profit, up 23% and 15% YoY respectively.