Home > Latest News > Afterpay Pays Off, As Block Shares Soar 39% On ASX

Afterpay Pays Off, As Block Shares Soar 39% On ASX

Shares in Twitter founder Jack Dorsey’s company Block jumped by nearly 40 per cent on the ASX this morning, as the company delivered an impressive quarterly update that smashed market expectations.

Dorsey said Block will “integrate buy now, pay later more deeply” into its Square payment services, as the company posted annual earnings of over US$1 billion for its first time.

Dorsey has been quiet since renaming the company from Square to Block, purchasing Afterpay, and listing on the ASX in January.

Today, Dorsey revealed plans to launch Cash App in Australia.

“We want to be known as the simplest way to hold all of your personal finances no matter what you have to do. We want to make sure it is simple and straightforward,” Dorsey said.

“The interesting thing about Afterpay is this gets us closer to much larger retailers.

“What sets us apart from our competitors, and especially the neobanks, is that we are not just focused on one aspect, we have an entire ecosystem reinforcing one another.

“A lot of it creates even more opportunity for people to keep their money with us and as we see people keeping their money with us, we see them doing more activities that we offer, such as bitcoin or stocks or the cash card.

“We intend to integrate buy now, pay later more deeply in our ecosystem over time and believe Afterpay will accelerate the connections between our Square and Cash App ecosystems.”

Block reported gross profit of A$6.13 billion for calendar year 2021, up 62 per cent year-on-year.

Revenue for the fourth quarter came in ahead of Wall Street estimates at A$5.69 billion, up 29 per cent compared by fourth quarter 2020. EBITDA were A$1.41 billion, up a whopping 114 per cent.

Costs, including the A$40 billion take over of Afterpay, resulted in a A$107.3 million loss during the fourth quarter.

Dorsey will hold an investors’ day on Maay 17, where he will detail his plans for Afterpay.

“We are thrilled to be over the hump and finally closed [on the Afterpay purchase],” he said.

“As you can imagine, integrations are quite challenging and distracting for Afterpay, for Square and Cash App, which we knew going in. But we believe in the outcome fully, and the future of it. This is a huge connection between our two largest ecosystems.”



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