Square, the crypto payment firm founded by Jack Dorsey, has released its filings for the first quarter of 2020 that publicized revenue for Square’s Cash App, a majority of which came from Bitcoin.
On May 6, it has been reported that $306 million of Cash App’s $528 million revenue for the first quarter of the year came from Bitcoin.
In spite of those numbers, Bitcoin composed a small fraction of Cash App’s profit, only $7 million of $183 million total profit.
The company explained:
“We deduct bitcoin revenue because our role is to facilitate customers’ access to bitcoin. When customers buy bitcoin through Cash App, we only apply a small margin to the market cost of bitcoin, which tends to be volatile and outside our control.”
However, Cash App reported a 115% increase in profit year-over-year. In an investor call on May 6, a member of Square’s team credited “efficient new customer acquisition,” which usually translates to good marketing and ease of use.
Square’s Cash App reports record revenues from Bitcoin as well as quarterly growth https://t.co/LGWbz7M9g7 — Cointelegraph (@Cointelegraph) May 6, 2020
Likewise, the numbers for investors were less promising, with earnings before interest, taxes, depreciation, and amortization slipping from $119 million in Q4 to $9 million this quarter.
As per the report, Dorsey emphasized Square’s performance in January and February rather than March on the same call with shareholders, when the coronavirus pandemic began destroying markets.
Dorsey praised the company’s “agility” amid this economic crisis.
Thus, one of his colleagues noted:
“We are encouraged by Cash App’s performance in April.”
Source: Cointelegraph | Image: Pixabay