Block, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Block, Inc. (formerly Square, Inc.) has filed its 2023 annual report (10-K) detailing its financial performance and business operations for the fiscal year ending December 31, 2023.</b>

AI Summary

Block, Inc. (BSQKZ) filed a Annual Report (10-K) with the SEC on February 22, 2024. Block, Inc. (formerly Square, Inc.) filed its 2023 Form 10-K on February 22, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 1955 Broadway, Suite 600, Oakland, CA 94612. Block, Inc. is classified under SIC code 7372 (Services-Prepackaged Software). The company was incorporated in Delaware.

Why It Matters

For investors and stakeholders tracking Block, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of Block, Inc.'s financial health, operational segments, and strategic initiatives for the fiscal year 2023, which is crucial for investors to assess the company's performance and future outlook. As a public company, Block, Inc. is required to disclose detailed financial information and risk factors annually, offering transparency into its business model, including its various segments like Square, Cash App, and Bitcoin operations.

Risk Assessment

Risk Level: medium — Block, Inc. shows moderate risk based on this filing. The company operates in the highly competitive fintech industry, facing risks from evolving market trends, regulatory changes, and technological advancements, as detailed in its risk factors section.

Analyst Insight

Investors should review Block, Inc.'s 2023 10-K for detailed segment performance, revenue growth drivers, and potential risks to inform investment decisions.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-22 — Filing Date (Date of submission)
• 001-37622 — SEC File Number (SEC filing identifier)
• 800429876 — IRS Number (Company tax identifier)

Key Players & Entities

• Block, Inc. (company) — Filer name
• Square, Inc. (company) — Former company name
• 1955 Broadway, Suite 600, Oakland, CA 94612 (company) — Business address
• 7372 (regulator) — Standard Industrial Classification
• DE (company) — State of incorporation
• 2023-12-31 (dollar_amount) — Fiscal year end
• 2024-02-22 (dollar_amount) — Filing date

FAQ

Industry Context

Block, Inc. operates within the financial technology (fintech) sector, providing a range of financial services and software products.

Regulatory Implications

As a publicly traded company, Block, Inc. is subject to the reporting requirements of the Securities and Exchange Commission (SEC) under the Securities Exchange Act of 1934.

What Investors Should Do

1. Review Block, Inc.'s detailed financial statements and management's discussion and analysis in the 10-K.
2. Analyze the performance of Block, Inc.'s various business segments (e.g., Square, Cash App).
3. Assess the risk factors outlined by Block, Inc. to understand potential challenges and uncertainties.

Key Dates

• 2024-02-22: 10-K Filing — Annual report submission date
• 2023-12-31: Fiscal Year End — Period covered by the report

Year-Over-Year Comparison

This filing is the annual 10-K report for the fiscal year ended December 31, 2023, following previous quarterly and annual filings.

Key Financial Figures

• $0.0000001 — which registered Class A Common Stock, $0.0000001 par value per share SQ New York Stock E
• $500,000 — fine as sellers that generate more than $500,000 in annualized Square Gross Payment Volu
• $209.6 billion — individual sales transactions totaling $209.6 billion of Square GPV. These sales transactions
• $248 billion — p transacting actives brought more than $248 billion in inflows into Cash App. Customers can
• $384 — sacting active brought in an average of $384 of inflows in a given month during the

Filing Documents

• sq-20231231.htm (10-K) — 3090KB
• exhibit1022blockinc2023.htm (EX-10.2 2) — 92KB
• exhibit1024blockinc2023.htm (EX-10.2 4) — 106KB
• exhibit106blockinc2023.htm (EX-10.6) — 23KB
• exhibit108blockinc2023.htm (EX-10.8) — 92KB
• exhibit1023blockinc2023.htm (EX-10.23) — 223KB
• exhibit211blockinc2023.htm (EX-21.1) — 10KB
• exhibit231blockinc2023.htm (EX-23.1) — 2KB
• exhibit311blockinc2023.htm (EX-31.1) — 9KB
• exhibit312blockinc2023.htm (EX-31.2) — 9KB
• exhibit321blockinc2023.htm (EX-32.1) — 6KB
• exhibit971blockinc2023.htm (EX-97.1) — 35KB
• image_0.jpg (GRAPHIC) — 321KB
• image_1.jpg (GRAPHIC) — 282KB
• image_2.jpg (GRAPHIC) — 265KB
• image_3.jpg (GRAPHIC) — 229KB
• image_4.jpg (GRAPHIC) — 204KB
• image_5.jpg (GRAPHIC) — 240KB
• image_6.jpg (GRAPHIC) — 251KB
• image_7.jpg (GRAPHIC) — 276KB
• image_8.jpg (GRAPHIC) — 223KB
• image_9.jpg (GRAPHIC) — 434KB
• sq-20231231_g1.jpg (GRAPHIC) — 454KB
• sq-20231231_g2.jpg (GRAPHIC) — 604KB
• sq-20231231_g3.jpg (GRAPHIC) — 413KB
• sq-20231231_g4.jpg (GRAPHIC) — 355KB
• sq-20231231_g5.jpg (GRAPHIC) — 116KB
• sq-20231231_g6.jpg (GRAPHIC) — 143KB
• sq-20231231_g7.jpg (GRAPHIC) — 124KB
• 0001628280-24-006354.txt (&nbsp;) — 26213KB
• sq-20231231.xsd (EX-101.SCH) — 99KB
• sq-20231231_cal.xml (EX-101.CAL) — 176KB
• sq-20231231_def.xml (EX-101.DEF) — 617KB
• sq-20231231_lab.xml (EX-101.LAB) — 1307KB
• sq-20231231_pre.xml (EX-101.PRE) — 954KB
• sq-20231231_htm.xml (XML) — 2925KB

Risk Factors

Item 1A. Risk Factors 22

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 59 Item 1C. C ybersecurity 59

Properties

Item 2. Properties 60

Legal Proceedings

Item 3. Legal Proceedings 60

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 61 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 62

[RESERVED]

Item 6. [RESERVED] 64

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 65

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 85

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 87

Changes in and Disagreements With Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 150

Controls and Procedures

Item 9A. Controls and Procedures 150

Other Information

Item 9B. Other Information 151

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 151 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 152

Executive Compensation

Item 11. Executive Compensation 152

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 152

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 152

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 152 PART IV

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 153

Form 10-K Summary

Item 16. Form 10-K Summary 156

Signatures

Signatures 157 CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that involve substantial risks and uncertainties. Forward-looking statements generally relate to future events or our future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "appears," "should," "expects," "plans," "anticipates," "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," or "continue," or the negative of these words or other similar terms or expressions that concern our expectations, strategy, plans, or intentions. Forward-looking statements contained in this Annual Report on Form 10-K include, but are not limited to, statements about our future financial and operating performance, our expectations regarding transaction and loan losses, the adequacy of our allowance for loan losses on loans held for investment, or increased delinquencies, and the impact of inaccurate estimates or inadequate reserves, our anticipated growth and growth strategies and our ability to effectively manage that growth, our ability to invest in and develop our products and services to operate with changing technology, the expected benefits of our products to our customers and the impact of our products on our business, our expectations regarding product launches, the expected impact of the integration of Afterpay Limited ("Afterpay"), trends in our markets and the continuation of such trends, our expectations related to our plans to cap our employee base, our plans with respect to patents and other intellectual property, our expectations regarding litigation and regulatory matters and the adequacy of reserves for such matters, our expectations regardin

BUSINESS

ITEM 1. BUSINESS Our Business At Block, Inc. (together with its subsidiaries, "Block" or "we"), we are building an ecosystem of ecosystems, each focused on distinct customer audiences. We define an ecosystem as a set of tools and services that work together cohesively, often positively reinforcing one another. This helps create resilient relationships with customers as they use our tools and services to satisfy multiple needs. Our ecosystems are united by our shared purpose of economic empowerment, with each ecosystem serving different people — sellers, consumers, artists, fans, and developers. As we scale, we are focused on investing in developing connections between our ecosystems and by creating more connections to increase the resilience of our overall company. On December 1, 2021, we changed our corporate name from Square, Inc. to Block, Inc. Block is the name for the company as a corporate entity. Since our start in 2009 with the Square business, we have added Cash App, TIDAL, and TBD as businesses. Our two reportable segments are Square, formerly referred to as Seller, and Cash App, which reflects our two primary ecosystems and the manner in which the Company's chief operating decision maker ("CODM") reviews and assesses performance. We have historically allocated the financial results from our buy now, pay later ("BNPL") platform equally to the Cash App and Square segments. In the fourth quarter of 2023, we changed our management reporting structure and moved the business activities and management of our BNPL platform fully under Cash App. We believe that this transition will allow us to better focus on consumer based commerce as well as the development of its financial tools within Cash App. Square Ecosystem We started Block with the Square ecosystem in February 2009 to enable businesses ("sellers") to accept card payments, an important capability that was previously inaccessible to many businesses. As our company grew, we recognized that seller

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View this 10-K filing on SEC EDGAR