BLOCK Investment & Profitability Ecosystem Overview
BLOCK
Fixed Expenses
Variable expenses are investments that we incur to drive the next dollar of gross profit growth, and these typically scale with gross profit. These include discretionary expenses such as sales
& marketing investments and teams, customer success teams, as well as non-discretionary expenses such as risk loss, or Cash App peer-to-peer expenses on transaction costs and risk loss.
Fixed expenses are investments that may drive longer-term growth, and generally do not scale with an additional dollar of gross profit. These include expenses such as our product and
general & administrative teams, professional fees incurred, and corporate overhead expenses such as rent & facilities.
($ in thousands)
Total gross profit
Fixed expenses
2015
345,195
2017
839,306
2019
1,889,685
2021
66
4,419,823
Plus: Fixed personnel expenses (G&A and product development personnel)
129,923
243,310
464,090
886,433
Plus: Professional fees and subscriptions (including add back for acquisitions)
38,185
56,594
68,140
252,713
Plus: Facilities expenses
35,022
50,066
109,238
236,332
Total fixed expenses
Total fixed expenses (% of gross profit)
203,130
349,970
641,468
1,375,478
59%
42%
34%
31%View entire presentation