Block Inc. (SQ), formerly Square, is a financial services and online payments company that provides hardware and software tools to help businesses run and grow their operations. Block's primary products are its point-of-sale hardware system, software for payments processing and analytics, Square, and Cash App. The company also owns a majority in music-streaming service TIDAL and TBD, a bitcoin ecosystem.
Key Takeaways
- Block is a financial services and mobile payments company that provides point-of-sale hardware and software.
- Block's Cash App product generates most of the company's revenue.
- The company's platform Square provides payment and financial services to sellers.
Block's Industry
Block faces small and large competitors such as business software companies, payroll processors, payment terminal vendors, and banks. They include PayPal Holdings Inc. (PYPL), Intuit Inc. (INTU), Shopify Inc. (SHOP), and venture capital startup ShopKeep.
Block has two reportable segments: Square and Cash App. Products and services not assigned to a specific reportable segment, include TIDAL, TBD, and other emerging ecosystems.
- Cash App: Includes the financial tools within the mobile Cash App, including peer-to-peer payments, bitcoin, and stock investments. Cash App includes Cash App Card store consumer balances. Cash App also holds the Buy Now Pay Later (BNPL) platform.
- Square: Includes the payment services, software solutions, hardware, and financial services for sellers, excluding those under Cash App.
Block's Financials
Block Inc. announced in Feb. 2024 its financial results for fiscal year (FY) 2023 that ended Dec. 31, 2023. Annual revenue was $21.9 billion, a 25% increase year-over-year (YOY) from FY2022. The company posted a gross profit of $7.5 billion, up from $6.0 billion in 2022. Bitcoin transactions accounted for 43% of revenues.
History and Leadership
In 2009, Jack Dorsey and Jim McKelvey founded Square, Inc., a platform for merchant services and mobile payments. By December 2021, Square rebranded as Block, Inc. Since its 2015 initial public offering (IPO), Block has grown into one of the largest and best-known payment services companies in the U.S. The company posted its first annual profit in fiscal year (FY) 2019.
As of 2024, Jack Dorsey serves as the Chairman of the company. Amrita Ahuja is Block's Chief Operating Officer COO and Chief Financial Officer CFO.
Recent Developments
In May 2024, Square added new platform integrations for food and beverage businesses including SevenRooms, Restaurant365, and Popmenu. U.S. prosecutors are reportedly examining financial transactions at Block Inc. following a whistleblower allegation in 2024 that the company processed transactions for countries subject to economic sanctions and handled cryptocurrency transactions for terrorist groups.
How Does Block Inc. Keep Transactions Secure?
To prevent fraud and identity theft, Block integrates encryption technology on its devices, which do not store card numbers, security codes, or magnetic stripe data.
What Is a Point of Sale Transaction?
A POS or point of sale is a device used to process transactions by retail customers. Services like Square offer POS transactions so merchants can accept card payments through tapping or swiping.
How Many Employees Does Block Inc. Have?
As of 2023, Block Inc. employed 12,985 individuals.
The Bottom Line
Jim McKelvey and Jack Dorsey launched Square, Inc., in 2009. Square changed its name to Block, Inc. in December 2021. Since 2017, the company's Cash App has allowed merchants to use Bitcoin in the technology to accept payment.
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