Block, Inc. (formerly Square, Inc.[12]) is an American technology company and a financial services provider for consumers and merchants.[13] Founded in 2009 by Jack Dorsey, it is the U.S. market leader in point-of-sale systems.[14][15] As of 2024, Block serves 57 million users and 4 million sellers,[16][17] processing $241 billion in payments annually.[3]
Block's inaugural product Square, launched in 2009, is a point-of-sale system. It allows sellers to accept card payments and manage operations, including bookings,[18] e-commerce,[19] inventory,[20] payroll, banking, and obtaining business loans. Additionally, Block's portfolio includes Cash App, a consumer-focused digital wallet introduced in 2013.[21] This app allows users to send, receive, save or borrow money, access a debit card, invest in stocks and bitcoin, and file taxes. Block also owns Afterpay, a buy now, pay later business; Bitkey, a self-custody bitcoin wallet;[22][23] Proto, a bitcoin mining system;[24][25] and Tidal, a music streaming business.[26]
History
2009: Conception
The original inspiration for Block's first product "Square" occurred to Jack Dorsey in 2009 when his friend Jim McKelvey was unable to complete a $2,000 sale of his glass faucets and fittings because he could not accept credit cards.[27] Dorsey—who also co-founded Twitter—and McKelvey began developing the company out of a small office in St. Louis.[28] The name "Square" derives from the company's square-shaped card reader product.[29][30]
2010–2014: Early years
Subsidiaries, products, services
Square
Square is a payments platform that allows businesses to accept card payments and use smartphones or tablets or computers as payment registers for a point-of-sale system (POS).[73][74][75] The platform was founded in 2009 by Dorsey and McKelvey. Square also offers additional features to manage various operations including staff payroll and shift schedules,[76] customer bookings,[18][77]
Financials
Block received angel investments from Marissa Mayer, Kevin Rose, Biz Stone, Dennis Crowley, Shawn Fanning, MC Hammer, and Esther Dyson. Since then, it has raised several additional rounds of funding:
The company's valuation in October 2014 was $6 billion.[130] On November 19, 2015, Block had its IPO on the New York Stock Exchange with an initial valuation of $2.9 billion, down by more than half from its last valuation in October 2014 at $6 billion. The series E funding shares had different rights than the common shares sold at the IPO, therefore the $6 billion 'valuation' from October 2014 is wrong. Although the firm was yet to make a profit as of 2015 and had lost $420 million since 2012, it had decreased its losses from 44% of revenues to 16% in the six months leading up to its IPO.[131] For the fiscal year 2018, Block reported losses of US$38 million, with an annual revenue of US$3.299 billion, an increase of 49.0% over the previous fiscal cycle. The company reported $24.12 billion in revenue, $892 million in operating income, $2.9 billion in net income and $240.81 billion in gross payment volume (GPV) for the year 2024. It also stated that it had 11,372 employees, $36.78 billion in total assets and $21.27 billion in total stockholders' equity by the end of the year.[3]
Business
Operations
Block was co-founded by Twitter creator Jack Dorsey under the name Square.[134] Dorsey also serves as chief executive officer and Amrita Ahuja serves as chief financial officer.[134][135] Block's office is in San Francisco.[136] The firm has more than 5,000 employees.[137]
Block's payment platform, Square, has been available in the United States since 2010 and the company launched in Canada
Controversies
Allegations of illegal activity
On March 23, 2023, investment research firm Hindenburg Research disclosed a short position in Block, leading to a 15% drop in the company's shares that day. Hindenburg's accusations of Block included exaggerating user counts, failing to curb fraud and illegal activity on Cash App, and permitting impersonation of high-profile individuals. It also wrote in its report that Block "embraced predatory offerings and compliance worst practices in order to fuel growth and profit from facilitation of fraud against consumers and the government."[154][155] Block responded to the allegations in a press release saying, "We intend to work with the SEC and explore legal action against Hindenburg Research for the factually inaccurate and misleading report they shared about our Cash App business today."[156]
External links
References
- Catherine Clifford. Twitter billionaire Jack Dorsey on giving away his money: 'If someone is in pain, I am in pain' CNBC, May 21, 2020, retrieved June 3, 2020^
- Quarterly report sec.gov, 2024-08-01, retrieved 2024-11-17^
- Block, Inc. Form 8-K; Current Report Pursuant to Section 13 or 15(d) of The Securities Exchange Act of 1934