Payment platform Block releases 2022 financial report, with annual gross profit on the rise, Bitcoin investments quickly emerging.
Twitter founder Jack Dorsey's payment platform Block, formerly known as Square, has released its 2022 fourth quarter and full year financial report, with a net revenue of 4.65 billion U.S. dollars in the fourth quarter, a 14% increase compared to the same period in 2021. The full-year gross profit for 2022 was 5.99 billion U.S. dollars, a 36% growth from the previous year. The final adjusted EBITDA for 2022 was 991 million U.S. dollars, only slightly lower than 1.01 billion U.S. dollars in 2021. The impairment charge for Bitcoin in 2022 was 46.57 million U.S. dollars, but based on today's market price, their investment has nearly broken even.
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2022 Annual Gross Profit Increases
In 2022, the annual gross profit was $5.99 billion, a 36% increase from the previous year. Square's gross profit was $3 billion, a 30% increase from the previous year, while Cash App's gross profit was $2.95 billion, a 43% increase from the previous year. The net income for the year was -$541 million, but the final adjusted EBITDA was $991 million, only slightly down from $1.01 billion in 2021.
Note: EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortization, which better represents the company's core performance.
Despite the increase in overall gross profit in 2022, there was a net loss due to Block's acquisition of the Australian fintech company Afterpay, resulting in related acquisition integration and other expenses, as well as various one-time expenses related to equity arrangements accelerated by the Afterpay acquisition. After deducting these related expenses and Bitcoin impairment charges, the adjusted EBIDTA will be $991 million.
Bitcoin Investment
According to statistics from Buy Bitcoin worldwide, Block owns 8,027 Bitcoins, ranking eighth among all companies.
The report states that as of December 31, 2022, Block has accumulated an investment of $220 million in Bitcoin, with an average unit cost of approximately $27,400, and may purchase more Bitcoin in the future. The Bitcoin impairment loss recognized in 2022 was $46.57 million, but at current market prices, their investment is showing a positive return.