BLOCK Investment & Profitability Ecosystem Overview
BLOCK
INVESTMENTS & PROFITABILITY
Cash App has also achieved strong
structural margins, which have
improved significantly in recent years
Structural Margin
1 - (variable costs as
a % of gross profit)
40%
30%
20%
10%
Structural margin
expansion over time from
0%
4% in 2018 to 37% in 2021
2018
2019
2020
2021
37%
2021
For these purposes, corporate overhead is allocated by cost center to each ecosystem based on a driver selected to closely approximate each ecosystem's usage of centralized services
which include ratios like headcount, gross profit, consumption rates. Our corporate overhead used the same methodology and structure as our ecosystems did to assign variable and
fixed costs. From this point, we used the ratio of variable vs fixed to allocate our total corporate overhead variable costs to each of the ecosystems based on their total allocation usage.
Excludes share-based compensation expenses, and expenses related to TIDAL and TBD. Please see Appendix for a reconciliation and information on expense categories.
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