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Jack Dorsey: ‘Block Inc is no longer just a payments company’

Image for Block Inc investor day

Block Inc (NYSE: SQ) should be valued as an “ecosystem” and not just a pure-play payments company, says Jack Dorsey – the co-founder and CEO of the San Francisco-headquartered firm.

Block has diversified its business

In recent years, Block has branched into music streaming (Tidal) and crypto that made up 5.0% of its gross profit in the latest reported quarter. In an interview with CNBC, CFO Amrita Ahuja said:

Calling Block a payments company is like calling Amazon a bookseller. We’ve grown in so many different ways across multiple dimensions. You can see based on our track record; we’re outgrowing the rest of the industry.

Earlier in 2022, the NYSE-listed company also bought Afterpay for $29 billion to penetrate the BNPL space. The stock is down roughly 50% amidst the tech and Bitcoin sell-off this year.

Cash App has added 2 million MAUs this year

On the payments side, Cash App now has 46 million monthly active users (MAUs) versus 44 million at the end of 2021, Block revealed this morning at its first investor day since 2017.

The mobile payment service stood out in Block’s Q1 results on May 5th, which otherwise came in shy of analysts’ estimates. Wall Street, on average, sees an 85% upside in the stock from here.

The company rebranded itself to “Block Inc” in December 2021 to reflect its widening aperture around crypto and blockchain. It was formerly known as Square.

The post Jack Dorsey: ‘Block Inc is no longer just a payments company’ appeared first on Invezz.