In its shareholder letter, Block released its numbers for Square Loans for Q1 and it was impressive.
"Square Loans: Excluding revenue from PPP loan forgiveness, Square Loans achieved strong revenue and gross profit growth during the first quarter of 2023, facilitating approximately 113,000 loans totaling $1.10 billion in originations, up 46% year over year.
Square Loans benefited from $1 million of PPP loan forgiveness revenue and gross profit during the first quarter of 2023, compared to $51 million in the first quarter of 2022. "
The $1.10 billion figure would put them on pace for over $4 billion in loan originations for the year. Many think the alternative to bank financing will pick up due to rising rates so this may also help Square Loans as we move forward.
Block stock price has been essentially unaffected by the earnings report so far. It is down about 30% from last year at this time trading at about $60 today.
About Block
Block, Inc. (NYSE: SQ) is a global technology company with a focus on financial services. Made up of Square, Cash App, Spiral, TIDAL, and TBD, we build tools to help more people access the economy. Square helps sellers run and grow their businesses with its integrated ecosystem of commerce solutions, business software, and banking services. With Cash App, anyone can easily send, spend, or invest their money in stocks or Bitcoin. Spiral builds and funds free, open-source Bitcoin projects. Artists use TIDAL to help them succeed as entrepreneurs and connect more deeply with fans. TBD is building an open developer platform to make it easier to access Bitcoin and other blockchain technologies without having to go through an institution.