In this video, I will go over Block's (SQ +0.64%) Q2 earnings report and explain why I will be buying more shares. The company reported a beat on earnings per share and revenue, but the stock is down.
- The company reported total net revenue of $4.4 billion in the second quarter of 2022, down 6% year over year (YOY), beating estimates by $70 million.
- Earnings per share came in at $0.18, beating estimates of $0.16.
- Excluding Bitcoin, total net revenue in the second quarter was $2.62 billion, up 34% YOY. And gross profit was $1.47 billion, up 29% YOY, and up 47% on the basis of a three-year compound annual growth rate.
- Bitcoin revenue was $1.79 billion, down 34% YOY, and Bitcoin gross profit was only $41 million.
- The company reported a $36 million Bitcoin impairment loss, which hurt the company's earnings.
- Square GPV, which came in a bit weaker than expected this quarter because of the current macro environment, is expected to be up 18% YOY for the month of July.
- The company is planning on reducing its investments for the full year by $250 million.
Overall, I was happy with how this quarter turned out, given the broader market uncertainty, and that's why I am looking to add to my position on any weakness in the stock.
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*Stock prices used were the closing prices of August 2, 2022. The video was published on August 2, 2022.
