Here’s why the Block (ASX:SQ2) share price is rocketing 35% today

“We have seen strength in retention during recent years, with annual gross profit retention of greater than 125% for each of the past four years”

In simple terms, customers use and spend with the platform more each year.

This leads to growth in Block’s revenue and earnings before any contribution from new customers.

Cash App

Cash App is a digital bank account that allows customers to send and receive money, buy shares and trade cryptocurrency.

The division increased monthly transaction users to 44 million, a 22% increase on the prior year.

Customers were attracted by new features such as being able to lodge your tax return and transfer cryptocurrency for free.

Square

Square provides products and facilitates payments for merchants. You’ll recognise Square by the little white bricks that customers tap their card on.

The division’s merchant base increased its total transaction volumes by 45%, for which Block takes a clip of each transaction.

Square merchants are increasingly more engaged. Around 38% of current merchants use four or more of Square’s products, up from 10% five years ago.