Block missed earnings and revenue expectations driven in part by a drop in bitcoin revenue amid a general downdraft in the cryptocurrency market.
Shares were up 5% after hours, with the regular session down 10.5% during a broader market meltdown on Wall Street.
Earnings came in at 18 cents per share compared to analysts' expectations of 20 cents per share. Revenue was $3.96 billion, down 22% from a year ago.
Block's bitcoin revenue was $1.73 billion in the first quarter of 2022, a drop of 51% from the year-ago quarter. Bitcoin gross profit was $43 million — about 3% of bitcoin revenue. Jack Dorsey has pushed the company heavily toward bitcoin as a business.
Square, the merchant seller unit, had $661 million in gross profit, which was up 41% from a year ago, while Cash App had $624 million of gross profit, up 26%.
One bright spot: subscription revenue, which decreases the company's need to rely on transaction volume alone. Square subscription revenue was $231 million in the first quarter of 2022, excluding PPP loan forgiveness revenue, up from $112 million a year ago. In addition, the company booked $54 million in Afterpay subscription revenue for Square. Cash App generated $622 million in subscription and services revenue, which was up 43% from a year ago.