von - Block Reports Decline in Bitcoin Revenue – Block Inc (NYSE: SQ) reported a 7.0% decline in its fourth quarter bitcoin revenue.
- Baird Analyst’s Outlook on Block Stock – Baird’s senior analyst David Koning said that bitcoin mattered when Block was at $250 a share, but it doesn’t matter much now as it is only 4.0% of gross profit.
- Block Inc Forecasts Full Year Adjusted EBITDA and Gross Profit – For the full year, Block Inc is now calling for $1.30 billion of adjusted EBITDA and 25% of gross profit versus 22% in the recent quarter.
Block Reports Decline in Bitcoin Revenue
Block Inc (NYSE: SQ) reported a 7.0% decline in its fourth quarter bitcoin revenue. BTC generated $35 million of gross profit for Block Inc in Q4 – a 25% year-on-year decline related to the slump in bitcoin price. As of December 31st, the company’s bitcoin holdings had a fair value of $133 million.
Baird Analyst’s Outlook on Block Stock
Reacting to it on CNBC’s „Closing Bell: Overtime“, Baird’s senior analyst David Koning said that bitcoin mattered when Block was at $250 a share but at $70, it doesn’t matter as it is only 4.0% of gross profit. He added that Cash App crushed it and they accelerated well above the Street with January and February trends accelerating very nicely while Street is modelling deceleration in Q1 which should be up nicely tomorrow. His price target of $85 a share suggests about a 15% upside on where this stock closed the regular session today.
Impairment Charge Related to BTC Investment
In its letter to shareholders, Block revealed a $9.0 million impairment charge related to its BTC investment in Q4 versus $2.0 million only in the prior quarter.
Block Inc Forecasts Full Year Adjusted EBITDA and Gross Profit
For the full year, Block Inc is now calling for $1.30 billion of adjusted EBITDA and 25% of gross profit versus 22% in the recent quarter.
