Where Will Block Be in 1 Year?
Block (NYSE: SQ) is a trailblazer in digital payments, innovating on point-of-sale systems for small businesses while expanding its Cash App into a full-blown financial services app. The company is coming off a rough patch, but signs point toward a turnaround for the fintech. Although it's impossible to predict what will happen next, insights from management offer valuable clues about what investors can expect from Block in the next year.
Block's financial engine is driven by two sources: Square, its point-of-sale solution for small businesses; and Cash App, its money transfer app that's grown into a full-fledged financial platform. Last year, the company raked in $7.5 billion in gross profit, with $3.1 billion coming from Square and $4.3 billion from Cash App.
Block's growth has been impressive. Since 2020, the company has nearly tripled its gross profit. Its expansion has been fueled by its two main products, with Cash App leading the way, seeing its gross profit soar 250% over that period. This growth comes as Block expanded the Cash App beyond simple money transfers to banking, investing, saving, Bitcoin trading, and borrowing through its buy now, pay later (BNPL) offering, Afterpay.
Source Fool.com
