If you notice, bitcoin revenue and costs are almost 1:1, which means that that aspect of the business is largely a pass through for cash app customers. I put little value on that initiative. There is really good growth in the core transactions and services businesses. If you don’t believe me, look at how the legacy payment processors are getting crushed by square in the smb space. I would ignore bitcoin in any analysis of the company. Without it revenue was up 30% y/y, which is tough to come by in this economy for tech.

The increase in stock based comp is necessary to keep employees from leaving after last year’s massive decline.

Overall, the valuation is a little rich at 4x core transactions and services sales. But that’s always been the case for square.