Jack Dorsey’s payments company Block Inc. reported $1.83 billion in Bitcoin (BTC) revenue from its Cash App business unit in the fourth quarter, down 7% from the same time last year.
In its fourth-quarter and full-year results, announced on Feb. 23, Block attributed the drop in Bitcoin revenue to the year-over-year decline in BTC price. Bitcoin fell about 65% in 2022.
This drop in revenue led to a 25% year-over-year drop in Bitcoin gross profit for Cash App, which fell to $35 million in the quarter.
Cash App is a mobile phone payment processing app created by Block, which added support for transactions over the Bitcoin Lightning Network on October 25. It generates Bitcoin income by selling Bitcoin to customers through the app.
For the full year 2022, Cash App generated $7.11 billion in Bitcoin revenue and $156 million in Bitcoin gross profit, down 29% and 28% respectively compared to 2021.
Meanwhile, Block Inc. reported a larger net loss of $114 million for the quarter, compared to a loss of $77 million in 2021. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 53% to $281 million compared to the same time last year . Total revenue in the quarter was $4.65 billion.
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Block’s stock price jumped in after-hours trading following the earnings report.
Some analysts have attributed the jump to the company’s gross profit growth, which was up 40% in the fourth quarter compared to the previous year, also beating analyst expectations.
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