Cash App propels Block to buoyant first quarter even as Square volume falls

The news: Block raised its full-year profit guidance after Cash App use surged in the first quarter in spite of allegations it facilitates fraud.

• Gross payment volume (GPV) reached $51.12 billion, up 17% year over year (YoY) but slowing from 31% during the same period a year ago. Quarter-over-quarter (QoQ) growth dropped 3.8%.
• Gross profits rose 32% YoY to $1.71 billion, slowing slightly from 34% a year earlier.
• Square's GPV fell 5% YoY to a one-year low.

Cash App rises above allegations: In March, activist short seller Hindenburg Research alleged that Block's Cash App facilitates fraud and inflates its user numbers. Block later defended itself by publishing details of how it handles fraud and fake accounts.