General

Fintech Nexus Newsletter (February 22, 2024): Block reports surprisingly strong earnings and forecasts

Block reported earnings after the bell yesterday and it was a strong report with solid revenue growth in both Cash App and Square.

Revenue for the fourth quarter was above expectations at $5.77 billion and gross profit was $2.03 billion, up 22% from a year ago. 

In his shareholder letter (PDF here) CEO Jack Dorsey focused a lot on Cash App. There are currently two million people receiving their pay into their Cash App account, a small subset of the 56 million monthly active users. He wants to grow that number significantly.

He also talked about headcount staying below their self-imposed cap of 12,000 people and they will stay under that cap “until we feel it’s holding us back.”

Dorsey also indicated that integrating Afterpay more tightly with Cash App would be a priority in 2024.

Block’s share price was up 18% in morning trading on Friday.


> Block shares surge after company announces surprise profit

Disputes within Klarna spilled over into a high-profile VC drama. Sequoia backtracked on plans to boot former partner and Silicon Valley legend Michael Moritz from the board.


From Fintech Nexus

> General Atlantic leads $50M investment in Colombia’s fintech Bold

By David Feliba

Colombian fintech Bold secured $50 million in a series C round led by private equity firm General Atlantic.

> DeFi: $400MM+ for Ethena’s synthetic dollar with 27% yield

By Laurence Smith

Can it stay pegged and profitable?


Podcast

Ana Mahony, Founder & CEO of Addition Wealth on the digital plus human approach to financial health

Digital tools are essential for delivering financial health products that can make a difference. But many lack the human…

Listen Now


Also Making News

  • USA: Credit card issuers’ APR margins hit record 14.3% in 2023, CFPB says
    Lenders collected an estimated $25 billion in additional interest income last year by raising the average margin on annual percentage rates, or the amount above the prime rate, according to the Consumer Financial Protection Bureau.
  • USA: JPMorgan Chase sued over bounced check fees
    The lawsuit filed Tuesday claimed JPMorgan charged “unconscionable” and “predatory” fees for returned checks between November 2021 and October 2022.
  • Global: Spatial Banking: Designing For A New Dimension In Financial Services
    Spatial banking can provide a more engaging and immersive banking experience.
  • USA: This Virginia bank wants to rewrite the rules for banking as a service
    MainStreet Bancshares in Fairfax says it can succeed where others have run into some thorny regulatory problems by cutting out the middleware and linking fintech partners directly to its core.
  • USA: OCC: Banks Responsible for Fintech Partnership Risks
    OCC emphasises: Banks bear responsibility for managing risks in fintech partnerships. Insights from Acting Comptroller Michael Hsu.
  • USA: Finding the sweet spot between fulfilling SMB needs and growing bank deposits
    Banks have benefited from high interest rates in recent quarters. But higher interest rates also hike borrowing costs for SMBs, posing challenges for small businesses seeking capital to manage operations, expand, or hire more staff.
  • Global: ‘You Come at The King, You Best Not Miss’
    Mentally, I’ve been in Sweden this week, though the quote that best sums up our recent reporting hails from the gritty Baltimore streets of “The Wire”: “You Come at The King, You Best Not Miss.”

To sponsor our newsletters and reach 275,000 fintech enthusiasts with your message, contact us here.

Related posts

Revolut appoints chief banking officer as US CEO

admin

Binance said it is pulling out of FTX deal

admin

Editorial cartoon for April 11, 2023

admin