BLOCK(US:SQ)2025-02-20 21:20Financial Performance - Q4 2024 gross profit reached $2.31 billion, representing a 14% year-over-year growth[8] - Cash App gross profit was $1.38 billion, with a 16% year-over-year growth, while Square gross profit was $924 million, reflecting a 12% year-over-year growth[8] - The company achieved a Rule of 40 score of 36.5 in 2024, with 18% gross profit growth and an 18% Adjusted Operating Income margin[41] - In Q4 2024, gross profit grew 14% year-over-year, with operating income of $13 million and Adjusted Operating Income of $402 million[42] - For 2025, the company expects gross profit growth of at least 15% year-over-year and aims to deliver $2.1 billion in Adjusted Operating Income[42] - Total net revenue for the twelve months ended December 31, 2024, was $24.12 billion, an increase of 10.0% from $21.92 billion in 2023[84] - Gross profit for the twelve months ended December 31, 2024, was $8.89 billion, compared to $7.50 billion in 2023, marking a 18.5% increase[84] - Operating income for the period was $892.33 million, a significant recovery from an operating loss of $278.84 million in 2023[84] - Net income attributable to common stockholders was $2.90 billion, a substantial increase from $9.77 million in the previous year[84] - Basic net income per share attributable to common stockholders was $4.70, compared to $0.02 in 2023[84] Cash Flow and Liquidity - Adjusted Free Cash Flow for the trailing twelve months ended December 31, 2024, was $2.1 billion, growing more than 4x year over year[59] - The company ended Q4 2024 with total liquidity of $10.7 billion, including $9.9 billion in cash and cash equivalents[61] - Cash flows from operating activities improved to $1,707,350, compared to $100,961 in the prior year, indicating a strong operational performance[86] - The company reported a net cash increase of $4,221,425 for the year, compared to $573,181 in the previous year, reflecting robust cash management[88] Customer Engagement and Growth - Cash App's paycheck deposit actives increased to 2.5 million, a 25% year-over-year increase, with significant growth in the second half of 2024[35] - Cash App Pay volumes grew more than 4x year-over-year to $4 billion in 2024[39] - Cash App Card reached 25 million monthly actives as of December 2024, with significant engagement from younger customers[37] - Cash App Borrow scaled to nearly $9 billion in originations over the past year, indicating strong customer demand for small loans[6] Revenue Streams - Transaction-based revenue reached $6.61 billion, up from $6.32 billion in the previous year, reflecting a growth of 4.7%[84] - Subscription and services-based revenue increased to $7.16 billion, a rise of 20.5% compared to $5.94 billion in 2023[84] - Bitcoin revenue grew to $10.20 billion, representing an increase of 7.4% from $9.50 billion in 2023[84] - The BNPL platform achieved a gross merchandise value of $10.3 billion, with gross profit of $298 million, up 23% year-over-year[54] Operating Expenses and Investments - Operating expenses in Q4 2024 were $2.298 billion, with product development expenses up 12% year-over-year[55] - Marketing spend for Square increased over 60% year-over-year in Q4 2024 to drive customer acquisition[31] - The company is investing heavily in applied AI tools to enhance productivity and efficiency across its operations[23] - The company plans to increase investment in go-to-market initiatives across Square and Cash App by more than 20% in 2025[63] Shareholder Returns - The company repurchased 2.3 million shares of Class A common stock for $183 million in Q4 2024, with $2.7 billion remaining under its share repurchase authorization[60] Future Projections - The company expects to exit 2025 at a Rule of 40 run rate, ahead of schedule, with continued momentum throughout the year[24] - The company remains committed to achieving Rule of 40 in 2026 and expects to exit 2025 at or above this target on a quarterly basis[42] - In Q1 2025, the company projects gross profit of $2.32 billion, with an expected year-over-year growth of 11%[67] - The company anticipates Adjusted Operating Income of $2.1 billion for 2025, equating to a margin of approximately 21% on gross profit[63] Asset Management - Total current assets increased to $19,880,201, up from $17,818,697, representing an increase of approximately 11.7% year-over-year[85] - Total assets reached $36,777,595, an increase of 11.1% from $33,031,308 in the previous year[85] - Long-term debt rose to $5,105,939, up from $4,120,091, indicating increased leverage to support growth initiatives[85] - Total stockholders' equity attributable to common stockholders increased to $21,267,932, up from $18,695,256, reflecting improved profitability and retained earnings[85] Adjusted Metrics - Adjusted EPS for Q4 2024 was $0.71, representing a 51% increase year-over-year[44] - Adjusted Operating Income for the twelve months ended December 31, 2024, was $1,608,790, significantly higher than $351,351 for the same period in 2023, reflecting a year-over-year increase of approximately 357%[94] - Adjusted EBITDA for the twelve months ended December 31, 2024, reached $3,029,031, up from $1,792,420 in 2023, marking an increase of approximately 68.9%[94] - The company reported a gross profit margin of 32% for the twelve months ended December 31, 2024, compared to a margin of 0% in 2023[94]