Strong growth in the middle of macroeconomic challenges

• Total block gross gain: $ 2.29 billion, an increase of 9% compared to the previous year.

• Square gross profit growth: 9% compared to the previous year, driven by GPV growth of 7.2%.

• Cash app gross profit: 10% compared to the previous year.

• Gross profit active per monthly transactions: USD 81 in a quarter.

• Adapted EBITDA: $ 813 million by 15% compared to the previous year.

• Adapted operating result: $ 466 million by 28% compared to the previous year.

• Adjusted free cash flow: 1.53 billion US dollars for the gap of 12 months that end in March.

• Share buyback: Bought around 600 million US dollars back by the end of April.

• 2025 expectation of gross profit growth: 12% or 9.96 billion US dollars.

• Expectation of gross profit growth in the second quarter: 9.5%.

• April Global GPV growth expectation: 9.6% compared to the previous year.

• Adjusted operating results expectation for 2025: 1.9 billion US dollars or approx. 19% margin.

Appearance date: May 1, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Block Inc (NYSE: XYZ) recorded a gross profit of $ 2.29 billion in the first quarter, which was an increase of 9% compared to the previous year.

• Square showed a strong performance with gross profit growth of 9% compared to the previous year, which is due to a GPV growth of 7.2%.

• The company achieved its highly adjusted operating result and the adjusted EBITDA of all time, with the adjusted EBITDA increased by 15% compared to the previous year.

• Block INC (NYSE: XYZ) received the FDIC permit to use Square Financial Services for the issue of consumer loans. This is expected that the economy of the units is significantly improved and the offer of cash app loans will be expanded.

• The company is actively investing in AI and product innovations and plans to present over 100 new products and functions that are expected to promote future growth.

• The cash app's gross profit was below expectations, which was due to changes in consumer behavior, especially during the tax reimbursement season.

• The company has embedded more macroeconomic prospects in its instructions, which reflects the potential softening of consumer expenditure.

• Despite the strong performance in the square, the growth of the cash app was influenced by the expected inflows and discretionary expenses of lower than expected expenses.

• Block Inc (NYSE: XYZ) lowered his adjusted operational income management of the year and reflects a more conservative approach due to macroeconomic uncertainties.

• The company has not provided any specific numbers for the direct deposit users of the cash app, which indicates potential challenges when expanding this user base.

Q: Jack, can you explain your confidence in growth acceleration despite macro uncertainties? A: Jack Dorsey, CEO of the board, Block Head: We have made significant internal changes and improvements in our systems, especially with the market share of square profit. Our focus is on the product speed, network extension and AI integration, which show positive results. We also improve the network density and product controls of the cash app to promote growth.