Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 27, 2023 | |
Class of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-37622 | |
Entity Registrant Name | Block, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 80-0429876 | |
Entity Address, Address Line One | 1955 Broadway | |
Entity Address, Address Line Two | Suite 600 | |
Entity Address, City or Town | Oakland | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94612 | |
City Area Code | 415 | |
Local Phone Number | 375-3176 | |
Title of 12(b) Security | Class A common stock, $0.0000001 par value per share | |
Trading Symbol | SQ | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001512673 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Class A | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 553,569,000 | |
Class B | ||
Class of Stock [Line Items] | ||
Entity Common Stock, Shares Outstanding | 60,524,000 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 5,112,293 | $ 4,544,202 |
Investments in short-term debt securities | 1,161,144 | 1,081,851 |
Settlements receivable | 3,689,046 | 2,416,324 |
Customer funds | 2,913,737 | 3,180,324 |
Loans held for sale | 597,035 | 474,036 |
Safeguarding asset related to bitcoin held for other parties | 676,363 | 428,243 |
Other current assets | 1,696,033 | 1,627,265 |
Total current assets | 17,540,600 | 15,623,405 |
Goodwill | 11,749,198 | 11,966,761 |
Acquired intangible assets, net | 1,778,951 | 2,014,034 |
Investments in long-term debt securities | 426,202 | 573,429 |
Operating lease right-of-use assets | 268,418 | 373,172 |
Other non-current assets | 791,529 | 813,539 |
Total assets | 32,554,898 | 31,364,340 |
Current liabilities: | ||
Customers payable | 6,672,957 | 5,548,656 |
Settlements payable | 515,510 | 462,505 |
Accrued expenses and other current liabilities | 1,275,427 | 1,073,516 |
Current portion of long-term debt (Note 13) | 0 | 460,356 |
Warehouse funding facilities, current | 51,858 | 461,240 |
Safeguarding obligation liability related to bitcoin held for other parties | 676,363 | 428,243 |
Total current liabilities | 9,192,115 | 8,434,516 |
Warehouse funding facilities, non-current | 858,485 | 877,066 |
Long-term debt (Note 13) | 4,117,502 | 4,109,829 |
Operating lease liabilities, non-current | 302,779 | 357,419 |
Other non-current liabilities | 253,511 | 334,155 |
Total liabilities | 14,724,392 | 14,112,985 |
Commitments and contingencies (Note 18) | ||
Stockholders’ equity: | ||
Preferred stock, $0.0000001 par value: 100,000 shares authorized at September 30, 2023 and December 31, 2022. None issued and outstanding at September 30, 2023 and December 31, 2022. | 0 | 0 |
Additional paid-in capital | 19,352,152 | 18,314,681 |
Accumulated other comprehensive loss | (802,482) | (523,090) |
Accumulated deficit | (737,010) | (568,712) |
Total stockholders’ equity attributable to common stockholders | 17,812,660 | 17,222,879 |
Noncontrolling interests | 17,846 | 28,476 |
Total stockholders’ equity | 17,830,506 | 17,251,355 |
Total liabilities and stockholders’ equity | 32,554,898 | 31,364,340 |
Consumer | ||
Current assets: | ||
Consumer receivables, net | 1,694,949 | 1,871,160 |
Loans held for sale | 199,497 | 120,870 |
Class A | ||
Stockholders’ equity: | ||
Common stock | 0 | 0 |
Class B | ||
Stockholders’ equity: | ||
Common stock | $ 0 | $ 0 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | ||
Preferred stock, par value (in USD per share) | $ 0.00 | $ 0.00 |
Preferred stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Class A | ||
Class of Stock [Line Items] | ||
Common stock, par value (in USD per share) | $ 0.00 | $ 0.00 |
Common stock, authorized (in shares) | 1,000,000,000 | 1,000,000,000 |
Common stock, issued (in shares) | 552,215,000 | 539,408,000 |
Common stock, outstanding (in shares) | 552,215,000 | 539,408,000 |
Class B | ||
Class of Stock [Line Items] | ||
Common stock, par value (in USD per share) | $ 0.00 | $ 0.00 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 60,626,000 | 60,652,000 |
Common stock, outstanding (in shares) | 60,626,000 | 60,652,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue: | ||||
Revenue | $ 5,617,493,000 | $ 4,515,541,000 | $ 16,142,581,000 | $ 12,880,685,000 |
Cost of revenue: | ||||
Amortization of acquired technology assets | 17,880,000 | 18,506,000 | 54,780,000 | 51,874,000 |
Total cost of revenue | 3,719,044,000 | 2,948,452,000 | 10,663,447,000 | 8,548,988,000 |
Gross profit | 1,898,449,000 | 1,567,089,000 | 5,479,134,000 | 4,331,697,000 |
Operating expenses: | ||||
Product development | 713,788,000 | 548,037,000 | 2,035,397,000 | 1,531,088,000 |
Sales and marketing | 479,381,000 | 485,838,000 | 1,512,999,000 | 1,518,227,000 |
General and administrative | 480,885,000 | 395,437,000 | 1,463,003,000 | 1,235,306,000 |
Transaction, loan, and consumer receivable losses | 177,338,000 | 147,586,000 | 485,005,000 | 395,433,000 |
Bitcoin impairment losses | 0 | 1,619,000 | 0 | 37,580,000 |
Amortization of customer and other acquired intangible assets | 56,965,000 | 37,361,000 | 130,917,000 | 103,414,000 |
Total operating expenses | 1,908,357,000 | 1,615,878,000 | 5,627,321,000 | 4,821,048,000 |
Operating loss | (9,908,000) | (48,789,000) | (148,187,000) | (489,351,000) |
Interest expense (income), net | (21,415,000) | 6,042,000 | (28,520,000) | 34,756,000 |
Other expense (income), net | (4,262,000) | (18,798,000) | 15,488,000 | (71,036,000) |
Income (loss) before income tax | 15,769,000 | (36,033,000) | (135,155,000) | (453,071,000) |
Provision (benefit) for income taxes | 49,529,000 | (17,289,000) | 43,773,000 | (17,687,000) |
Net loss | (33,760,000) | (18,744,000) | (178,928,000) | (435,384,000) |
Less: Net loss attributable to noncontrolling interests | (4,806,000) | (4,033,000) | (10,630,000) | (8,460,000) |
Net loss attributable to common stockholders | $ (28,954,000) | $ (14,711,000) | $ (168,298,000) | $ (426,924,000) |
Net loss per share attributable to common stockholders: | ||||
Basic (in USD per share) | $ (0.05) | $ (0.02) | $ (0.28) | $ (0.75) |
Diluted (in USD per share) | $ (0.05) | $ (0.02) | $ (0.28) | $ (0.75) |
Weighted-average shares used to compute net loss per share attributable to common stockholders: | ||||
Basic (in shares) | 611,276 | 592,672 | 606,767 | 572,234 |
Diluted (in shares) | 611,276 | 592,672 | 606,767 | 572,234 |
Transaction-based revenue | ||||
Revenue: | ||||
Revenue | $ 1,658,668,000 | $ 1,517,890,000 | $ 4,719,027,000 | $ 4,226,566,000 |
Cost of revenue: | ||||
Cost of revenue | 984,658,000 | 901,990,000 | 2,755,968,000 | 2,493,988,000 |
Subscription and services-based revenue | ||||
Revenue: | ||||
Revenue | 1,492,900,000 | 1,191,511,000 | 4,320,621,000 | 3,245,924,000 |
Cost of revenue: | ||||
Cost of revenue | 259,262,000 | 225,903,000 | 802,577,000 | 622,031,000 |
Hardware revenue | ||||
Revenue: | ||||
Revenue | 42,341,000 | 43,388,000 | 124,714,000 | 128,765,000 |
Cost of revenue: | ||||
Cost of revenue | 78,338,000 | 76,002,000 | 211,208,000 | 223,160,000 |
Bitcoin revenue | ||||
Revenue: | ||||
Revenue | 2,423,584,000 | 1,762,752,000 | 6,978,219,000 | 5,279,430,000 |
Cost of revenue: | ||||
Cost of revenue | $ 2,378,906,000 | $ 1,726,051,000 | $ 6,838,914,000 | $ 5,157,935,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Statement of Comprehensive Income [Abstract] | |||||
Net loss | $ (33,760) | $ (18,744) | $ (178,928) | $ (435,384) | |
Net foreign currency translation adjustments | [1] | (273,097) | (609,045) | (308,262) | (985,328) |
Net unrealized gain (loss) on marketable debt securities | 7,993 | (7,678) | 28,870 | (44,876) | |
Total comprehensive loss | $ (298,864) | $ (635,467) | $ (458,320) | $ (1,465,588) | |
[1]Includes foreign currency translation losses related to goodwill of $194.7 million and $217.5 million for the three and nine months ended September 30, 2023, respectively. Foreign currency translation losses related to goodwill were $434.5 million and $679.5 million for the three and nine months ended September 30, 2022, respectively. |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation losses related to goodwill | $ 194.7 | $ 434.5 | $ 217.5 | $ 679.5 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Class A and B common stock | Additional paid-in capital | Accumulated other comprehensive income (loss) | Accumulated deficit | Noncontrolling interests |
Beginning balance (in shares) at Dec. 31, 2021 | 464,944 | |||||
Beginning balance at Dec. 31, 2021 | $ 3,313,589 | $ 0 | $ 3,317,255 | $ (16,435) | $ (27,965) | $ 40,734 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (207,363) | (204,199) | (3,164) | |||
Shares issued in connection with employee stock plans (in shares) | 2,120 | |||||
Shares issued in connection with employee stock plans | 4,093 | 4,093 | ||||
Change in other comprehensive income (loss) | 234,792 | 234,792 | ||||
Share-based compensation | 279,354 | 279,354 | ||||
Tax withholding related to vesting of restricted stock units (in shares) | (16) | |||||
Tax withholding related to vesting of restricted stock units | (2,456) | (2,456) | ||||
Issuance of common stock in connection with business combination (in shares) | 113,617 | |||||
Issuance of common stock in connection with business combination | 13,827,929 | 13,827,929 | ||||
Issuance of common stock in conjunction with the conversion of convertible notes (in shares) | 20 | |||||
Issuance of common stock in conjunction with the conversion of convertible notes | 454 | 454 | ||||
Exercise of bond hedges in conjunction with the conversion of convertible notes (in shares) | (1,189) | |||||
Ending balance (in shares) at Mar. 31, 2022 | 579,496 | |||||
Ending balance at Mar. 31, 2022 | 17,450,392 | $ 0 | 17,426,629 | 218,357 | (232,164) | 37,570 |
Beginning balance (in shares) at Dec. 31, 2021 | 464,944 | |||||
Beginning balance at Dec. 31, 2021 | 3,313,589 | $ 0 | 3,317,255 | (16,435) | (27,965) | 40,734 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (435,384) | |||||
Ending balance (in shares) at Sep. 30, 2022 | 596,537 | |||||
Ending balance at Sep. 30, 2022 | 16,529,938 | $ 0 | 17,999,192 | (1,046,639) | (454,889) | 32,274 |
Beginning balance (in shares) at Mar. 31, 2022 | 579,496 | |||||
Beginning balance at Mar. 31, 2022 | 17,450,392 | $ 0 | 17,426,629 | 218,357 | (232,164) | 37,570 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (209,277) | (208,014) | (1,263) | |||
Shares issued in connection with employee stock plans (in shares) | 2,866 | |||||
Shares issued in connection with employee stock plans | 39,024 | 39,024 | ||||
Change in other comprehensive income (loss) | (648,273) | (648,273) | ||||
Share-based compensation | 261,342 | 261,342 | ||||
Tax withholding related to vesting of restricted stock units (in shares) | (14) | |||||
Tax withholding related to vesting of restricted stock units | (1,797) | (1,797) | ||||
Issuance of common stock in connection with the exercise of common stock warrants and convertible notes (in shares) | 3,022 | |||||
Ending balance (in shares) at Jun. 30, 2022 | 585,370 | |||||
Ending balance at Jun. 30, 2022 | 16,891,411 | $ 0 | 17,725,198 | (429,916) | (440,178) | 36,307 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (18,744) | (14,711) | (4,033) | |||
Shares issued in connection with employee stock plans (in shares) | 3,315 | |||||
Shares issued in connection with employee stock plans | 6,116 | 6,116 | ||||
Change in other comprehensive income (loss) | (616,723) | (616,723) | ||||
Share-based compensation | 268,359 | 268,359 | ||||
Tax withholding related to vesting of restricted stock units (in shares) | (8) | |||||
Tax withholding related to vesting of restricted stock units | (481) | (481) | ||||
Issuance of common stock in connection with the exercise of common stock warrants and convertible notes (in shares) | 7,859 | |||||
Ending balance (in shares) at Sep. 30, 2022 | 596,537 | |||||
Ending balance at Sep. 30, 2022 | 16,529,938 | $ 0 | 17,999,192 | (1,046,639) | (454,889) | 32,274 |
Beginning balance (in shares) at Dec. 31, 2022 | 600,060 | |||||
Beginning balance at Dec. 31, 2022 | 17,251,355 | $ 0 | 18,314,681 | (523,090) | (568,712) | 28,476 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (19,326) | (16,838) | (2,488) | |||
Shares issued in connection with employee stock plans (in shares) | 3,333 | |||||
Shares issued in connection with employee stock plans | 6,825 | 6,825 | ||||
Change in other comprehensive income (loss) | (49,471) | (49,471) | ||||
Share-based compensation | 285,502 | 285,502 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 603,393 | |||||
Ending balance at Mar. 31, 2023 | 17,474,885 | $ 0 | 18,607,008 | (572,561) | (585,550) | 25,988 |
Beginning balance (in shares) at Dec. 31, 2022 | 600,060 | |||||
Beginning balance at Dec. 31, 2022 | 17,251,355 | $ 0 | 18,314,681 | (523,090) | (568,712) | 28,476 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (178,928) | |||||
Ending balance (in shares) at Sep. 30, 2023 | 612,841 | |||||
Ending balance at Sep. 30, 2023 | 17,830,506 | $ 0 | 19,352,152 | (802,482) | (737,010) | 17,846 |
Beginning balance (in shares) at Mar. 31, 2023 | 603,393 | |||||
Beginning balance at Mar. 31, 2023 | 17,474,885 | $ 0 | 18,607,008 | (572,561) | (585,550) | 25,988 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (125,842) | (122,506) | (3,336) | |||
Shares issued in connection with employee stock plans (in shares) | 5,479 | |||||
Shares issued in connection with employee stock plans | 59,137 | 59,137 | ||||
Change in other comprehensive income (loss) | 35,183 | 35,183 | ||||
Share-based compensation | 326,424 | 326,424 | ||||
Issuance of common stock in conjunction with the conversion of convertible notes | 21 | 21 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 608,872 | |||||
Ending balance at Jun. 30, 2023 | 17,769,808 | $ 0 | 18,992,590 | (537,378) | (708,056) | 22,652 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (33,760) | (28,954) | (4,806) | |||
Shares issued in connection with employee stock plans (in shares) | 3,969 | |||||
Shares issued in connection with employee stock plans | 4,454 | 4,454 | ||||
Change in other comprehensive income (loss) | (265,104) | (265,104) | ||||
Share-based compensation | 355,108 | 355,108 | ||||
Ending balance (in shares) at Sep. 30, 2023 | 612,841 | |||||
Ending balance at Sep. 30, 2023 | $ 17,830,506 | $ 0 | $ 19,352,152 | $ (802,482) | $ (737,010) | $ 17,846 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (178,928,000) | $ (435,384,000) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 303,236,000 | 249,616,000 |
Amortization of discounts and premiums and other non-cash adjustments | (357,116,000) | (371,298,000) |
Non-cash lease expense | 114,067,000 | 70,958,000 |
Share-based compensation | 944,514,000 | 794,794,000 |
Loss (gain) on revaluation of equity investments | 16,838,000 | (43,914,000) |
Transaction, loan, and consumer receivable losses | 485,005,000 | 395,433,000 |
Bitcoin impairment losses | 0 | 37,580,000 |
Change in deferred income taxes | (86,642,000) | (47,503,000) |
Changes in operating assets and liabilities: | ||
Settlements receivable | (1,518,471,000) | (793,460,000) |
Purchases and originations of loans | (5,896,371,000) | (4,684,598,000) |
Proceeds from payments and forgiveness of loans | 5,575,440,000 | 4,643,899,000 |
Customers payable | 1,390,888,000 | 599,886,000 |
Settlements payable | 53,005,000 | 75,185,000 |
Other assets and liabilities | 53,419,000 | (360,660,000) |
Net cash provided by operating activities | 898,884,000 | 130,534,000 |
Cash flows from investing activities: | ||
Purchases of marketable debt securities | (934,904,000) | (521,692,000) |
Proceeds from maturities of marketable debt securities | 994,740,000 | 769,276,000 |
Proceeds from sale of marketable debt securities | 39,450,000 | 236,524,000 |
Proceeds from maturities of marketable debt securities from customer funds | 0 | 73,000,000 |
Proceeds from sale of marketable debt securities from customer funds | 0 | 316,576,000 |
Payments from originations of consumer receivables | (16,401,673,000) | (12,286,091,000) |
Proceeds from principal repayments and sales of consumer receivables | 16,814,089,000 | 12,538,992,000 |
Purchases of property and equipment | (99,457,000) | (121,709,000) |
Purchases of other investments | (7,277,000) | (39,079,000) |
Business combinations, net of cash acquired | 0 | 539,453,000 |
Net cash provided by investing activities | 404,968,000 | 1,505,250,000 |
Cash flows from financing activities: | ||
Repayments of Paycheck Protection Program Liquidity Facility advances | (16,840,000) | (466,417,000) |
Payments to redeem convertible notes | (461,761,000) | (1,071,788,000) |
Proceeds from warehouse facilities borrowings | 564,588,000 | 711,455,000 |
Repayments of warehouse facilities borrowings | (967,655,000) | (310,729,000) |
Proceeds from the exercise of stock options and purchases under the employee stock purchase plan | 70,416,000 | 49,233,000 |
Payments for tax withholding related to vesting of restricted stock units | 0 | (4,734,000) |
Other financing activities | (19,977,000) | 0 |
Net increase in interest-bearing deposits | 57,243,000 | 58,909,000 |
Change in customer funds, restricted from use in the Company's operations | (266,587,000) | 152,663,000 |
Net cash used in financing activities | (1,040,573,000) | (881,408,000) |
Effect of foreign exchange rate on cash and cash equivalents | (28,455,000) | (94,972,000) |
Net increase in cash, cash equivalents, restricted cash, and customer funds | 234,824,000 | 659,404,000 |
Cash, cash equivalents, restricted cash, and customer funds, beginning of the period | 8,435,906,000 | 6,975,090,000 |
Cash, cash equivalents, restricted cash, and customer funds, end of the period | 8,670,730,000 | 7,634,494,000 |
Reconciliation of cash, cash equivalents, restricted cash, and customer funds: | ||
Cash and cash equivalents | 5,112,293,000 | 4,331,787,000 |
Short-term restricted cash | 572,754,000 | 246,570,000 |
Long-term restricted cash | 71,946,000 | 72,479,000 |
Customer funds cash and cash equivalents | 2,913,737,000 | 2,983,658,000 |
Total | $ 8,670,730,000 | $ 7,634,494,000 |
DESCRIPTION OF BUSINESS AND SUM
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Business Block, Inc. (together with its subsidiaries, "Block" or the "Company") creates tools that empower businesses, sellers, and individuals to participate in the economy. Block is comprised of two reportable segments, Square and Cash App. Square is a cohesive commerce ecosystem that helps sellers start, run, and grow their businesses, including enabling sellers to accept card payments, providing reporting and analytics, and facilitating next-day settlement. Square’s point-of-sale software and other business services help sellers manage inventory, locations, and employees; access financial services; engage buyers; build a website or online store; and grow sales. Cash App is an ecosystem of financial products and services to help individuals manage their money by providing financial tools that allow individuals to store, send, receive, spend, save and invest their money. Cash App seeks to redefine the world’s relationship with money by making it more relatable, instantly available, and universally accessible. On January 31, 2022, the Company completed the acquisition of Afterpay Limited (“Afterpay”), a global buy now pay later ("BNPL") platform, to strengthen its position to better deliver compelling financial products and services that expand access to more consumers and drive incremental revenue for merchants of all sizes. See Note 8, Acquisitions for further details. Block was founded in 2009 and has offices globally. The Company does not designate a headquarters location as it adopted a distributed work model in 2021. Basis of Presentation The accompanying interim condensed consolidated financial statements of the Company are unaudited. These interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") and the applicable rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The December 31, 2022 condensed consolidated balance sheet was derived from the audited financial statements as of that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company's consolidated financial position, results of operations, comprehensive income (loss), and cash flows for the interim periods. The condensed consolidated financial statements include the financial statements of Block and its wholly-owned and majority-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Minority interests are recorded as a noncontrolling interest, which is reported as a component of stockholders' equity on the condensed consolidated balance sheets. The interim results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023, or for any other future annual or interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and related notes in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, as well as related disclosure of contingent assets and liabilities. Actual results could differ from the Company’s estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or operating results will be materially affected. The Company bases its estimates on current and past experience, to the extent that historical experience is predictive of future performance and other assumptions that the Company believes are reasonable under the circumstances. The Company evaluates these estimates on an ongoing basis. Estimates, judgments, and assumptions in these condensed consolidated financial statements include, but are not limited to, those related to accrued transaction losses, contingencies, valuation of loans held for sale, valuation of goodwill and acquired intangible assets, determination of allowance for loan loss reserves for loans held for investment, determination of allowance for credit losses for consumer receivables, pre-acquisition contingencies associated with business combinations, allocation of acquired goodwill to segments, assessing the likelihood of adverse outcomes from claims and disputes, income and other taxes, operating and financing lease right-of-use assets and related liabilities, and share-based compensation. The Company's estimates of valuation of loans held for sale, allowance for credit losses associated with consumer receivables, and accrued transaction losses are based on historical experience, adjusted for market data relevant to the current economic environment. The Company will continue to update its estimates as developments occur and additional information is obtained. Refer to Note 5, Fair Value Measurements for further details on amortized cost over fair value of the loans, Note 6, Consumer Receivables, net for further details on consumer receivables, and Note 10, Other Consolidated Balance Sheet Components (Current) for further details on transaction losses. Concentration of Credit Risk For the three and nine months ended September 30, 2023 and September 30, 2022, the Company had no customer that accounted for greater than 10% of total net revenue. The Company had three third-party payment processors that represented approximately 47%, 31% and 9% of settlements receivable as of September 30, 2023. As of December 31, 2022, there were two parties that represented approximately 54% and 31% of settlements receivable. In both periods, all other third-party payment processors were insignificant. Certain of the Company's products are reliant on third-party service providers such as partner banks, card issuers, and payment service providers. The Company's relationships with third-party service providers may result in operational concentration risks for some of these products. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, marketable debt securities, settlements receivable, customer funds, consumer receivables, loans held for sale, and loans held for investment. To mitigate the risk of concentration associated with cash and cash equivalents, as well as restricted cash, funds are held with creditworthy institutions and, at certain times, temporarily swept into insured programs overnight to reduce single firm concentration risk. Amounts on deposit may exceed federal deposit insurance limits. The associated risk of concentration for marketable debt securities is mitigated by holding a diversified portfolio of highly rated investments. Settlements receivable are amounts due from well-established payment processing companies and normally take one two Sales and Marketing Expenses Advertising costs are expensed as incurred and in cluded in sales and marketing expenses on the condensed consolidated statements of operations. Total advertising costs wer e $78.1 million and $283.3 million for the three and nine months ended September 30, 2023, respectively, compared to $91.6 million and $405.6 million for the three and nine months ended September 30, 2022, respectively. The Company also records services, incentives, and other costs to acquire customers that are not directly related to a revenue generating transaction as sales and marketing expenses, as the Company considers these to be marketing costs to encourage the usage of Cash App. These expenses include, but are not limited to, Cash App peer-to-peer processing costs and related transaction losses, card issuance costs, customer referral bonuses, and promotional giveaways. These costs are expensed as incurred. The Company recorded $214.2 million and $693.3 million for the three and nine months ended September 30, 2023, respectively, compared to $212.3 million and $620.3 million for the three and nine months ended September 30, 2022, respectively, for such expenses. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In March 2022, the Financial Accounting Standards Board ("FASB") issued ASU No. 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method ("ASU 2022-01") related to the portfolio layer method of hedge accounting. The amendments allow nonprepayable financial assets to be included in a closed portfolio hedge using the portfolio layer method. ASU 2022-01 also allows for multiple hedged layers to be designated for a single closed portfolio of financial assets or one or more beneficial interests secured by a portfolio of financial instruments. The Company adopted this guidance effective January 1, 2023, and has applied the guidance prospectively. The adoption of this guidance did not have a material impact on the Company's financial statements and related disclosures. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) related to troubled debt restructuring and vintage disclosures for financing receivables. The amendments eliminate recognition and measurement guidance for troubled debt restructurings for creditors and requires entities to evaluate if the modification represents a new loan or a continuation of the existing loan. ASU 2022-02 also enhances disclosure requirements for certain loan refinancing and restructurings made to borrowers experiencing financial difficulty and requires disclosure of current period write-offs by year of origination for financing receivables. The Company adopted this guidance effective January 1, 2023, and has applied the guidance prospectively. The adoption of this guidance did not have a material impact on the Company's financial statements and related disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03") related to equity securities. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. An entity is prohibited from recognizing a contractual sale restriction as a separate unit of account. ASU 2022-03 also requires specific disclosures related to equity securities that are subject to contractual restrictions, including the fair value of such equity securities, the nature and remaining duration of the corresponding restrictions, and any circumstances that could cause a lapse in the restrictions. The amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on the Company's financial statements and related disclosures. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The following table presents the Company's net revenue disaggregated by revenue source (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenue from contracts with customers: Transaction-based revenue $ 1,658,668 $ 1,517,890 $ 4,719,027 $ 4,226,566 Subscription and services-based revenue 1,077,457 902,708 3,187,465 2,427,193 Hardware revenue 42,341 43,388 124,714 128,765 Bitcoin revenue 2,423,584 1,762,752 6,978,219 5,279,430 Revenue from other sources: Subscription and services-based revenue (i) 415,443 288,803 1,133,156 818,731 Total net revenue $ 5,617,493 $ 4,515,541 $ 16,142,581 $ 12,880,685 (i) Subscription and services-based revenue generated primarily from Consumer and Commercial loans. |
INVESTMENTS IN DEBT SECURITIES
INVESTMENTS IN DEBT SECURITIES | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS IN DEBT SECURITIES | INVESTMENTS IN DEBT SECURITIES The Company's short-term and long-term investments as of September 30, 2023 were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term debt securities: U.S. agency securities $ 92,819 $ 1 $ (2,079) $ 90,741 Corporate bonds 272,928 5 (3,792) 269,141 Commercial paper 29,532 — — 29,532 Municipal securities 9,401 — (381) 9,020 Certificates of deposit 173,155 — — 173,155 U.S. government securities 592,466 9 (6,763) 585,712 Foreign government securities 3,895 — (52) 3,843 Total $ 1,174,196 $ 15 $ (13,067) $ 1,161,144 Long-term debt securities: U.S. agency securities $ 16,120 $ 2 $ (252) $ 15,870 Corporate bonds 169,426 25 (759) 168,692 Municipal securities 1,495 — (259) 1,236 U.S. government securities 243,071 12 (2,679) 240,404 Foreign government securities — — — — Total $ 430,112 $ 39 $ (3,949) $ 426,202 The Company's short-term and long-term investments as of December 31, 2022 were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term debt securities: U.S. agency securities $ 96,545 $ 16 $ (2,120) $ 94,441 Corporate bonds 368,110 2 (7,475) 360,637 Commercial paper 31,503 — — 31,503 Municipal securities 9,884 — (191) 9,693 Certificates of deposit 6,400 — — 6,400 U.S. government securities 580,568 6 (8,937) 571,637 Foreign government securities 7,795 — (255) 7,540 Total $ 1,100,805 $ 24 $ (18,978) $ 1,081,851 Long-term debt securities: U.S. agency securities $ 74,097 $ — $ (3,782) $ 70,315 Corporate bonds 245,891 6 (9,171) 236,726 Municipal securities 10,415 3 (664) 9,754 U.S. government securities 268,902 — (13,210) 255,692 Foreign government securities 1,000 — (58) 942 Total $ 600,305 $ 9 $ (26,885) $ 573,429 The amortized cost of investments classified as cash equivalents approximated the fair value due to the short-term nature of the investments. The Company's gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2023 and December 31, 2022, aggregated by investment category and the length of time that individual securities have been in a continuous loss position, were as follows (in thousands): September 30, 2023 Less than 12 Months Greater than 12 Months Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Short-term debt securities: U.S. agency securities $ 22,107 $ (42) $ 63,635 $ (2,037) $ 85,742 $ (2,079) Corporate bonds 78,144 (176) 179,035 (3,616) 257,179 (3,792) Municipal securities — — 9,020 (381) 9,020 (381) U.S. government securities 164,876 (293) 285,128 (6,470) 450,004 (6,763) Foreign government securities — — 3,843 (52) 3,843 (52) Total $ 265,127 $ (511) $ 540,661 $ (12,556) $ 805,788 $ (13,067) Long-term debt securities: U.S. agency securities $ 8,956 $ (44) $ 3,792 $ (208) $ 12,748 $ (252) Corporate bonds 134,742 (547) 10,148 (212) 144,890 (759) Municipal securities 889 (111) 347 (148) 1,236 (259) U.S. government securities 165,440 (816) 36,033 (1,863) 201,473 (2,679) Foreign government securities — — — — — — Total $ 310,027 $ (1,518) $ 50,320 $ (2,431) $ 360,347 $ (3,949) December 31, 2022 Less than 12 Months Greater than 12 Months Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Short-term debt securities: U.S. agency securities $ 8,572 $ (24) $ 84,628 $ (2,096) $ 93,200 $ (2,120) Corporate bonds 34,795 (423) 320,748 (7,052) 355,543 (7,475) Municipal securities 587 (13) 5,811 (178) 6,398 (191) U.S. government securities 146,974 (839) 394,880 (8,098) 541,854 (8,937) Foreign government securities — — 7,540 (255) 7,540 (255) Total $ 190,928 $ (1,299) $ 813,607 $ (17,679) $ 1,004,535 $ (18,978) Long-term debt securities: U.S. agency securities $ 11,501 $ (20) $ 58,814 $ (3,762) $ 70,315 $ (3,782) Corporate bonds 33,862 (262) 201,791 (8,909) 235,653 (9,171) Municipal securities 467 (33) 8,784 (631) 9,251 (664) U.S. government securities 54,405 (590) 201,288 (12,620) 255,693 (13,210) Foreign government securities — — 942 (58) 942 (58) Total $ 100,235 $ (905) $ 471,619 $ (25,980) $ 571,854 $ (26,885) The Company does not intend to sell nor anticipate that it will be required to sell these securities before recovery of the amortized cost basis. Unrealized losses on available-for-sale debt securities were determined not to be related to credit losses, therefore, an allowance for credit losses is not required. The contractual maturities of the Company's short-term and long-term investments as of September 30, 2023 were as follows (in thousands): Amortized Cost Fair Value Due in one year or less $ 1,174,196 $ 1,161,144 Due in one to five years 430,112 426,202 Total $ 1,604,308 $ 1,587,346 The following table presents the assets underlying customer funds (in thousands): September 30, 2023 December 31, 2022 Cash $ 1,603,994 $ 1,748,983 Cash equivalents: Money market funds 566,451 851,296 Reverse repurchase agreement (i) 743,292 580,045 Total customer funds $ 2,913,737 $ 3,180,324 (i) The Company has accounted for the reverse repurchase agreement with a third-party as an overnight lending arrangement, collateralized by the securities subject to the repurchase agreement. The Company classified the amounts due from the counterparty as cash equivalents due to their short-term nature. |
CUSTOMER FUNDS
CUSTOMER FUNDS | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
CUSTOMER FUNDS | INVESTMENTS IN DEBT SECURITIES The Company's short-term and long-term investments as of September 30, 2023 were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term debt securities: U.S. agency securities $ 92,819 $ 1 $ (2,079) $ 90,741 Corporate bonds 272,928 5 (3,792) 269,141 Commercial paper 29,532 — — 29,532 Municipal securities 9,401 — (381) 9,020 Certificates of deposit 173,155 — — 173,155 U.S. government securities 592,466 9 (6,763) 585,712 Foreign government securities 3,895 — (52) 3,843 Total $ 1,174,196 $ 15 $ (13,067) $ 1,161,144 Long-term debt securities: U.S. agency securities $ 16,120 $ 2 $ (252) $ 15,870 Corporate bonds 169,426 25 (759) 168,692 Municipal securities 1,495 — (259) 1,236 U.S. government securities 243,071 12 (2,679) 240,404 Foreign government securities — — — — Total $ 430,112 $ 39 $ (3,949) $ 426,202 The Company's short-term and long-term investments as of December 31, 2022 were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term debt securities: U.S. agency securities $ 96,545 $ 16 $ (2,120) $ 94,441 Corporate bonds 368,110 2 (7,475) 360,637 Commercial paper 31,503 — — 31,503 Municipal securities 9,884 — (191) 9,693 Certificates of deposit 6,400 — — 6,400 U.S. government securities 580,568 6 (8,937) 571,637 Foreign government securities 7,795 — (255) 7,540 Total $ 1,100,805 $ 24 $ (18,978) $ 1,081,851 Long-term debt securities: U.S. agency securities $ 74,097 $ — $ (3,782) $ 70,315 Corporate bonds 245,891 6 (9,171) 236,726 Municipal securities 10,415 3 (664) 9,754 U.S. government securities 268,902 — (13,210) 255,692 Foreign government securities 1,000 — (58) 942 Total $ 600,305 $ 9 $ (26,885) $ 573,429 The amortized cost of investments classified as cash equivalents approximated the fair value due to the short-term nature of the investments. The Company's gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2023 and December 31, 2022, aggregated by investment category and the length of time that individual securities have been in a continuous loss position, were as follows (in thousands): September 30, 2023 Less than 12 Months Greater than 12 Months Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Short-term debt securities: U.S. agency securities $ 22,107 $ (42) $ 63,635 $ (2,037) $ 85,742 $ (2,079) Corporate bonds 78,144 (176) 179,035 (3,616) 257,179 (3,792) Municipal securities — — 9,020 (381) 9,020 (381) U.S. government securities 164,876 (293) 285,128 (6,470) 450,004 (6,763) Foreign government securities — — 3,843 (52) 3,843 (52) Total $ 265,127 $ (511) $ 540,661 $ (12,556) $ 805,788 $ (13,067) Long-term debt securities: U.S. agency securities $ 8,956 $ (44) $ 3,792 $ (208) $ 12,748 $ (252) Corporate bonds 134,742 (547) 10,148 (212) 144,890 (759) Municipal securities 889 (111) 347 (148) 1,236 (259) U.S. government securities 165,440 (816) 36,033 (1,863) 201,473 (2,679) Foreign government securities — — — — — — Total $ 310,027 $ (1,518) $ 50,320 $ (2,431) $ 360,347 $ (3,949) December 31, 2022 Less than 12 Months Greater than 12 Months Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Short-term debt securities: U.S. agency securities $ 8,572 $ (24) $ 84,628 $ (2,096) $ 93,200 $ (2,120) Corporate bonds 34,795 (423) 320,748 (7,052) 355,543 (7,475) Municipal securities 587 (13) 5,811 (178) 6,398 (191) U.S. government securities 146,974 (839) 394,880 (8,098) 541,854 (8,937) Foreign government securities — — 7,540 (255) 7,540 (255) Total $ 190,928 $ (1,299) $ 813,607 $ (17,679) $ 1,004,535 $ (18,978) Long-term debt securities: U.S. agency securities $ 11,501 $ (20) $ 58,814 $ (3,762) $ 70,315 $ (3,782) Corporate bonds 33,862 (262) 201,791 (8,909) 235,653 (9,171) Municipal securities 467 (33) 8,784 (631) 9,251 (664) U.S. government securities 54,405 (590) 201,288 (12,620) 255,693 (13,210) Foreign government securities — — 942 (58) 942 (58) Total $ 100,235 $ (905) $ 471,619 $ (25,980) $ 571,854 $ (26,885) The Company does not intend to sell nor anticipate that it will be required to sell these securities before recovery of the amortized cost basis. Unrealized losses on available-for-sale debt securities were determined not to be related to credit losses, therefore, an allowance for credit losses is not required. The contractual maturities of the Company's short-term and long-term investments as of September 30, 2023 were as follows (in thousands): Amortized Cost Fair Value Due in one year or less $ 1,174,196 $ 1,161,144 Due in one to five years 430,112 426,202 Total $ 1,604,308 $ 1,587,346 The following table presents the assets underlying customer funds (in thousands): September 30, 2023 December 31, 2022 Cash $ 1,603,994 $ 1,748,983 Cash equivalents: Money market funds 566,451 851,296 Reverse repurchase agreement (i) 743,292 580,045 Total customer funds $ 2,913,737 $ 3,180,324 (i) The Company has accounted for the reverse repurchase agreement with a third-party as an overnight lending arrangement, collateralized by the securities subject to the repurchase agreement. The Company classified the amounts due from the counterparty as cash equivalents due to their short-term nature. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTSThe Company measures its cash equivalents, customer funds, short-term and long-term marketable debt securities, and marketable equity investments at fair value. The Company classifies these investments within Level 1 or Level 2 of the fair value hierarchy because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The Company measures its safeguarding obligation liability related to bitcoin held for other parties at the fair value of the bitcoin that the Company holds for other parties and classifies the liability within Level 2 because the Company uses observable market prices of the underlying bitcoin as an input for the valuation. The Company also classifies its safeguarding asset related to bitcoin held for other parties within Level 2, unless the asset's carrying amount is adjusted to reflect any actual or potential safeguarding loss events, in which case it would be classified within Level 3. The Company was not aware of any actual or possible safeguarding loss events as of September 30, 2023 or December 31, 2022. The Company’s assets and liabilities that are measured at fair value on a recurring basis were classified as follows (in thousands): September 30, 2023 December 31, 2022 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 861,104 $ — $ — $ 1,230,924 $ — $ — U.S. government securities 24,274 — — — — — U.S. agency securities — — — — 7,923 — Commercial paper — 23,441 — — 25,080 — Corporate bonds — 209 — — — — Restricted cash: Money market funds 195,075 — — — — — Customer funds: Money market funds 566,451 — — 851,296 — — Reverse repurchase agreement 743,292 — — 580,045 — — Short-term debt securities: U.S. government securities 585,712 — — 571,637 — — Corporate bonds — 269,141 — — 360,637 — U.S. agency securities — 90,741 — — 94,441 — Certificates of deposit — 173,155 — — 6,400 — Commercial paper — 29,532 — — 31,503 — Municipal securities — 9,020 — — 9,693 — Foreign government securities — 3,843 — — 7,540 — Long-term debt securities: U.S. government securities 240,404 — — 255,692 — — Corporate bonds — 168,692 — — 236,726 — U.S. agency securities — 15,870 — — 70,315 — Municipal securities — 1,236 — — 9,754 — Foreign government securities — — — — 942 — Other: Investment in marketable equity securities 8,267 — — 11,092 — — Safeguarding asset related to bitcoin held for other parties — 676,363 — — 428,243 — Safeguarding obligation liability related to bitcoin held for other parties — (676,363) — — (428,243) — Total assets (liabilities) measured $ 3,224,579 $ 784,880 $ — $ 3,500,686 $ 860,954 $ — The carrying amounts of certain financial instruments, including settlements receivable, consumer receivables, loans held for investment, accounts payable, customers payable, accrued expenses, and settlements payable, approximate their fair values due to their short-term nature. The carrying amounts of the Company's warehouse funding facilities approximate their fair values. The Company estimates the fair value of its convertible and senior notes based on their last actively traded prices (Level 1) or market observable inputs (Level 2). The estimated fair value and carrying value of the convertible and senior notes were as follows (in thousands): September 30, 2023 December 31, 2022 Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) 2031 Senior Notes $ 989,215 $ 778,065 $ 988,171 $ 782,857 2026 Senior Notes 992,503 892,874 990,414 885,876 2027 Convertible Notes 569,530 428,035 568,535 433,082 2026 Convertible Notes 570,585 477,009 569,315 464,066 2025 Convertible Notes 995,669 925,474 993,394 943,188 2023 Convertible Notes — — 460,356 480,925 Total $ 4,117,502 $ 3,501,457 $ 4,570,185 $ 3,989,994 The estimated fair value and carrying value of loans held for sale and loans held for investment were as follows (in thousands): September 30, 2023 December 31, 2022 Carrying Value Fair Value (Level 3) Carrying Value Fair Value (Level 3) Loans held for sale $ 597,035 $ 602,105 $ 474,036 $ 491,807 Loans held for investment 227,466 236,891 123,959 126,122 Total $ 824,501 $ 838,996 $ 597,995 $ 617,929 If applicable, the Company will recognize transfers into and out of levels within the fair value hierarchy at the end of the reporting period in which the actual event or change in circumstance occurs. During the three and nine months ended September 30, 2023 and September 30, 2022, the Company did not have any transfers in or out of Level 1, Level 2, or Level 3 assets or liabilities. |
CONSUMER RECEIVABLES, NET
CONSUMER RECEIVABLES, NET | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
CONSUMER RECEIVABLES, NET | CONSUMER RECEIVABLES, NET Consumer receivables represent amounts due from consumers for outstanding installment payments on orders processed on the Company's BNPL platform. Consumer receivables are classified as held for investment. These receivables are typically interest free and are generally due within 14 to 56 days. The Company closely monitors credit quality for consumer receivables to manage and evaluate its related exposure to credit risk. The criteria the Company monitors when assessing the credit quality and risk of its consumer receivables portfolio is primarily based on internal risk assessments, as they provide insight into customer risk profiles and are useful as indicators of potential future credit losses. Consumer receivables are internally rated as "Pass" or "Classified." Pass rated consumer receivables generally consist of consumer receivables that are current or up to 60 days past due. Classified consumer receivables are generally comprised of consumer receivables that are greater than 60 days past due and have a higher risk of default. Internal risk ratings are reviewed and, generally, updated at least once a year. As of September 30, 2023, the amortized cost of Pass rated consumer receivables was $1.8 billion and the amount of Classified consumer receivables was less than $0.1 billion. The following table presents an aging analysis of the amortized cost of consumer receivables by delinquency status (in thousands): September 30, 2023 December 31, 2022 Non-delinquent loans $ 1,467,168 $ 1,643,874 1 - 60 days past due 287,711 295,830 61 - 90 days past due 25,020 20,612 90+ days past due 65,364 62,134 Total amortized cost $ 1,845,263 $ 2,022,450 The amount listed as 1 - 60 days past due in the above table includes $216.6 million and $224.9 million of cash in transit as of September 30, 2023 and December 31, 2022, respectively, which reflects ongoing repayments from consumers that have been sent from consumers’ bank accounts but have not yet been received at the Company’s bank account as of the date of the financial statements. This cash in transit as of September 30, 2023 and December 31, 2022 represents 11.7% and 11.1%, respectively, of the total amortized cost of consumer receivables. For consumer receivables, an allowance for credit losses is determined based on the probability of a default event occurring over the life of the receivables. When a consumer has not paid by the due date, it is an indication that credit risk has increased. As a result, the allowance for credit losses for that receivable is measured at an amount equal to the lifetime allowance for credit losses for increased credit risk. Lifetime allowance for credit losses is the expected credit losses that result from all possible default events over the expected life of the receivables. The allowance for credit losses on consumer receivables is a valuation account that is deducted from the carrying value of the consumer receivables. Consumer receivables are charged off when they are over 180 days past due and the Company has no reasonable expectation of recovery. When consumer receivables are charged off, the Company recognizes the charge against the allowance for credit losses. While the Company expects collections at that point to be unlikely, the Company may recover amounts from the respective consumers. Any subsequent recoveries following charge-off are credited to transaction, loan, and consumer receivable losses on the condensed consolidated statements of operations in the period they were recovered. The amount of recoveries for the three and nine months ended September 30, 2023 and September 30, 2022 were immaterial. The following table summarizes activity in the allowance for credit losses subsequent to the acquisition of Afterpay (in thousands): Three Months Ended September 30, 2023 2022 Allowance for credit losses, beginning of the period $ 153,772 $ 121,579 Provision for credit losses 60,365 53,021 Charge-offs and other adjustments (63,143) (28,516) Foreign exchange effect (680) (4,113) Allowance for credit losses, end of the period $ 150,314 $ 141,971 Nine Months Ended September 30, 2023 From Acquisition on Allowance for credit losses, beginning of the period (i) $ 151,290 $ 115,552 Provision for credit losses 172,549 146,014 Charge-offs and other adjustments (172,982) (116,624) Foreign exchange effect (543) (2,971) Allowance for credit losses, end of the period $ 150,314 $ 141,971 (i) Consumer receivables acquired from Afterpay that reflected a more-than-insignificant deterioration of credit from origination were considered purchased credit deteriorated ("PCD") receivables. For PCD consumer receivables, the initial estimate of expected credit losses was recognized in the allowance for credit losses on the date of acquisition using the same methodology as other consumer receivables. Loans Held for Investment The Company originates loans in the U.S. through its wholly-owned subsidiary bank, Square Financial Services ("SFS"). The Company sells the majority of the loans to institutional investors with a portion retained on its balance sheet. Loans retained by the Company are classified as held for investment as the Company has both the intent and ability to hold them for the foreseeable future, until maturity, or until payoff. The Company’s intent and ability in the future may change based on changes in business strategies, the economic environment, and market conditions. As of September 30, 2023 and December 31, 2022, the Company held $227.5 million and $124.0 million, respectively, as loans held for investment, net of allowance, included in other current assets on the condensed consolidated balance sheets. Refer to Note 10, Other Consolidated Balance Sheet Components (Current) for more details. Loans held for investment are recorded at amortized cost, less an allowance for potential uncollectible amounts. Amortized cost basis represents principal amounts outstanding, net of unearned income, unamortized deferred fees and costs on originated loans, premiums or discounts on purchased loans and charge-offs. The allowance for loan losses and amount of charge offs recorded as of September 30, 2023 and December 31, 2022 were all immaterial. The Company considers loans that are greater than 60 days past due to be delinquent, and loans 90 days or more past due to be nonperforming. Loans that are 120 days or more past due are generally considered to be uncollectible and are written off. When a loan is identified as nonperforming, recognition of income is discontinued. Loans are restored to performing status after total overdue unpaid amounts are repaid and the Company has reasonable assurance that performance under the terms of the loan will continue. As of September 30, 2023, the amount of loans that were identified as nonperforming loans was immaterial. The Company closely monitors economic conditions and loan performance trends to assess and manage its exposure to credit risk. The criteria the Company monitors when assessing the credit quality and risk of its loan portfolio is primarily based on internal risk ratings, as they provide insight into borrower risk profiles and are useful as indicators of potential future credit losses. Loans are internally rated as "Pass" or "Classified". Pass rated loans generally consist of loans that are current or up to 60 days past due. Classified loans generally comprise of loans that are 60 days or greater past due and have a higher risk of default. Internal risk ratings are reviewed and, generally, updated at least once a year. As of September 30, 2023, the amortized cost of Pass rated loans was $240.4 million and the amount of Classified loans was immaterial. Loans Held for Sale The Company classifies loans as held for sale when there is an available market for such loans and it is the Company’s intent to sell all of its rights, title, and interest in these loans to third-party investors. Loans held for sale primarily include Square Loans and Cash App Borrow products. Square Loans are loans facilitated by SFS to qualified Square sellers, while Cash App Borrow is a credit product for consumers that allows customers to access short-term loans for a small fee. Loans held for sale are recorded at the lower of amortized cost or fair value. As of September 30, 2023 and December 31, 2022 the Company had $597.0 million and $474.0 million, respectively, of loans held for sale, as disclosed in the Company's condensed consolidated balance sheets. The Company aggregates loans held for sale by the intended customer of the loan product. Commercial loans held for sale include Square Loans, Consumer loans held for sale include loans initiated through Cash App Borrow, and Other loans held for sale include loans outside of consumer and commercial loans. The following table presents the Company’s loans held for sale aggregated by category (in thousands): September 30, 2023 December 31, 2022 Commercial $ 372,922 $ 327,449 Consumer 199,497 120,870 Other 24,616 25,717 Total $ 597,035 $ 474,036 |
LOANS HELD FOR INVESTMENT AND S
LOANS HELD FOR INVESTMENT AND SALE | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
LOANS HELD FOR INVESTMENT AND SALE | CONSUMER RECEIVABLES, NET Consumer receivables represent amounts due from consumers for outstanding installment payments on orders processed on the Company's BNPL platform. Consumer receivables are classified as held for investment. These receivables are typically interest free and are generally due within 14 to 56 days. The Company closely monitors credit quality for consumer receivables to manage and evaluate its related exposure to credit risk. The criteria the Company monitors when assessing the credit quality and risk of its consumer receivables portfolio is primarily based on internal risk assessments, as they provide insight into customer risk profiles and are useful as indicators of potential future credit losses. Consumer receivables are internally rated as "Pass" or "Classified." Pass rated consumer receivables generally consist of consumer receivables that are current or up to 60 days past due. Classified consumer receivables are generally comprised of consumer receivables that are greater than 60 days past due and have a higher risk of default. Internal risk ratings are reviewed and, generally, updated at least once a year. As of September 30, 2023, the amortized cost of Pass rated consumer receivables was $1.8 billion and the amount of Classified consumer receivables was less than $0.1 billion. The following table presents an aging analysis of the amortized cost of consumer receivables by delinquency status (in thousands): September 30, 2023 December 31, 2022 Non-delinquent loans $ 1,467,168 $ 1,643,874 1 - 60 days past due 287,711 295,830 61 - 90 days past due 25,020 20,612 90+ days past due 65,364 62,134 Total amortized cost $ 1,845,263 $ 2,022,450 The amount listed as 1 - 60 days past due in the above table includes $216.6 million and $224.9 million of cash in transit as of September 30, 2023 and December 31, 2022, respectively, which reflects ongoing repayments from consumers that have been sent from consumers’ bank accounts but have not yet been received at the Company’s bank account as of the date of the financial statements. This cash in transit as of September 30, 2023 and December 31, 2022 represents 11.7% and 11.1%, respectively, of the total amortized cost of consumer receivables. For consumer receivables, an allowance for credit losses is determined based on the probability of a default event occurring over the life of the receivables. When a consumer has not paid by the due date, it is an indication that credit risk has increased. As a result, the allowance for credit losses for that receivable is measured at an amount equal to the lifetime allowance for credit losses for increased credit risk. Lifetime allowance for credit losses is the expected credit losses that result from all possible default events over the expected life of the receivables. The allowance for credit losses on consumer receivables is a valuation account that is deducted from the carrying value of the consumer receivables. Consumer receivables are charged off when they are over 180 days past due and the Company has no reasonable expectation of recovery. When consumer receivables are charged off, the Company recognizes the charge against the allowance for credit losses. While the Company expects collections at that point to be unlikely, the Company may recover amounts from the respective consumers. Any subsequent recoveries following charge-off are credited to transaction, loan, and consumer receivable losses on the condensed consolidated statements of operations in the period they were recovered. The amount of recoveries for the three and nine months ended September 30, 2023 and September 30, 2022 were immaterial. The following table summarizes activity in the allowance for credit losses subsequent to the acquisition of Afterpay (in thousands): Three Months Ended September 30, 2023 2022 Allowance for credit losses, beginning of the period $ 153,772 $ 121,579 Provision for credit losses 60,365 53,021 Charge-offs and other adjustments (63,143) (28,516) Foreign exchange effect (680) (4,113) Allowance for credit losses, end of the period $ 150,314 $ 141,971 Nine Months Ended September 30, 2023 From Acquisition on Allowance for credit losses, beginning of the period (i) $ 151,290 $ 115,552 Provision for credit losses 172,549 146,014 Charge-offs and other adjustments (172,982) (116,624) Foreign exchange effect (543) (2,971) Allowance for credit losses, end of the period $ 150,314 $ 141,971 (i) Consumer receivables acquired from Afterpay that reflected a more-than-insignificant deterioration of credit from origination were considered purchased credit deteriorated ("PCD") receivables. For PCD consumer receivables, the initial estimate of expected credit losses was recognized in the allowance for credit losses on the date of acquisition using the same methodology as other consumer receivables. Loans Held for Investment The Company originates loans in the U.S. through its wholly-owned subsidiary bank, Square Financial Services ("SFS"). The Company sells the majority of the loans to institutional investors with a portion retained on its balance sheet. Loans retained by the Company are classified as held for investment as the Company has both the intent and ability to hold them for the foreseeable future, until maturity, or until payoff. The Company’s intent and ability in the future may change based on changes in business strategies, the economic environment, and market conditions. As of September 30, 2023 and December 31, 2022, the Company held $227.5 million and $124.0 million, respectively, as loans held for investment, net of allowance, included in other current assets on the condensed consolidated balance sheets. Refer to Note 10, Other Consolidated Balance Sheet Components (Current) for more details. Loans held for investment are recorded at amortized cost, less an allowance for potential uncollectible amounts. Amortized cost basis represents principal amounts outstanding, net of unearned income, unamortized deferred fees and costs on originated loans, premiums or discounts on purchased loans and charge-offs. The allowance for loan losses and amount of charge offs recorded as of September 30, 2023 and December 31, 2022 were all immaterial. The Company considers loans that are greater than 60 days past due to be delinquent, and loans 90 days or more past due to be nonperforming. Loans that are 120 days or more past due are generally considered to be uncollectible and are written off. When a loan is identified as nonperforming, recognition of income is discontinued. Loans are restored to performing status after total overdue unpaid amounts are repaid and the Company has reasonable assurance that performance under the terms of the loan will continue. As of September 30, 2023, the amount of loans that were identified as nonperforming loans was immaterial. The Company closely monitors economic conditions and loan performance trends to assess and manage its exposure to credit risk. The criteria the Company monitors when assessing the credit quality and risk of its loan portfolio is primarily based on internal risk ratings, as they provide insight into borrower risk profiles and are useful as indicators of potential future credit losses. Loans are internally rated as "Pass" or "Classified". Pass rated loans generally consist of loans that are current or up to 60 days past due. Classified loans generally comprise of loans that are 60 days or greater past due and have a higher risk of default. Internal risk ratings are reviewed and, generally, updated at least once a year. As of September 30, 2023, the amortized cost of Pass rated loans was $240.4 million and the amount of Classified loans was immaterial. Loans Held for Sale The Company classifies loans as held for sale when there is an available market for such loans and it is the Company’s intent to sell all of its rights, title, and interest in these loans to third-party investors. Loans held for sale primarily include Square Loans and Cash App Borrow products. Square Loans are loans facilitated by SFS to qualified Square sellers, while Cash App Borrow is a credit product for consumers that allows customers to access short-term loans for a small fee. Loans held for sale are recorded at the lower of amortized cost or fair value. As of September 30, 2023 and December 31, 2022 the Company had $597.0 million and $474.0 million, respectively, of loans held for sale, as disclosed in the Company's condensed consolidated balance sheets. The Company aggregates loans held for sale by the intended customer of the loan product. Commercial loans held for sale include Square Loans, Consumer loans held for sale include loans initiated through Cash App Borrow, and Other loans held for sale include loans outside of consumer and commercial loans. The following table presents the Company’s loans held for sale aggregated by category (in thousands): September 30, 2023 December 31, 2022 Commercial $ 372,922 $ 327,449 Consumer 199,497 120,870 Other 24,616 25,717 Total $ 597,035 $ 474,036 |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS Afterpay On January 31, 2022 (February 1, 2022 Australian Eastern Daylight Time), the Company completed the acquisition of Afterpay, a global BNPL platform. In connection with the acquisition, the Company issued 113,617,352 shares of the Company’s Class A common stock. The shares issued included a deemed vested component of outstanding employee awards, based on the ratio of time served in relation to the vesting term of each award, with the unvested portion being replaced with Block’s unvested replacement awards, with the same terms. The aggregate fair value of the shares issued was $13.8 billion based on the closing price of the Company’s Class A common stock on the acquisition date, of which $66.3 million was attributed to acceleration of various share-based arrangements and was accounted for as an expense immediately post-acquisition, included as a component of general and administrative expenses in the condensed consolidated statement of operations. As of the completion of the acquisition, certain convertible notes with an outstanding principal amount of AU $1.5 billion (U.S. $1.1 billion based on the closing exchange rate on the acquisition date) remained outstanding, and were redeemed on March 4, 2022. As of December 31, 2022, the Company's purchase price allocation was complete and the measurement period was closed. The table below summarizes the consideration paid for Afterpay and the assessment of the fair value of the assets acquired and liabilities assumed at the closing date (in thousands, except share data): Consideration: Stock (113,617,352 shares of Class A common stock, excluding value accounted as post-combination expense of $66,337) $ 13,827,929 Cash paid to settle tax withholding in connection with replacement awards 8,693 Total $ 13,836,622 Recognized amounts of identifiable assets acquired and liabilities assumed: Current assets (inclusive of cash, cash equivalents, and restricted cash acquired) $ 653,709 Consumer receivables 1,245,508 Intangible customer assets 1,378,000 Intangible technology assets 239,000 Intangible trade name 386,000 Other non-current assets 74,232 Long-term debt - current (i) (1,058,065) Current liabilities (439,358) Warehouse funding facilities (ii) (107,996) Deferred tax liabilities (190,689) Other non-current liabilities (63,213) Total identifiable net assets acquired 2,117,128 Goodwill 11,719,494 Total $ 13,836,622 (i) Long-term debt - current is comprised of the aforementioned Afterpay convertible notes, which were redeemed in cash at face value on March 4, 2022. (ii) Refer to Note 13, Indebtedness for further details. |
ACQUIRED INTANGIBLE ASSETS
ACQUIRED INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
ACQUIRED INTANGIBLE ASSETS | ACQUIRED INTANGIBLE ASSETS The following tables present the detail of acquired intangible assets as of the periods presented (in thousands): Balance at September 30, 2023 Weighted Average Estimated Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology assets 5 years $ 381,842 $ (181,353) $ 200,489 Customer assets 14 years 1,440,476 (201,714) 1,238,762 Trade names 9 years 422,953 (90,183) 332,770 Other 9 years 13,299 (6,369) 6,930 Total $ 2,258,570 $ (479,619) $ 1,778,951 Balance at December 31, 2022 Weighted Average Estimated Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology assets 5 years $ 398,665 $ (133,116) $ 265,549 Customer assets 15 years 1,474,163 (110,316) 1,363,847 Trade names 9 years 434,766 (58,352) 376,414 Other 9 years 13,701 (5,477) 8,224 Total $ 2,321,295 $ (307,261) $ 2,014,034 All intangible assets are amortized over their estimated useful lives. The changes to the carrying value of intangible assets were as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Acquired intangible assets, net, beginning of the period $ 1,878,238 $ 2,148,078 $ 2,014,034 $ 257,049 Acquisitions — — — 2,028,490 Amortization expense (74,845) (55,867) (185,697) (155,288) Foreign currency translation and other adjustments (24,442) (61,335) (49,386) (99,375) Acquired intangible assets, net, end of the period $ 1,778,951 $ 2,030,876 $ 1,778,951 $ 2,030,876 The estimated future amortization expense of intangible assets in future periods as of September 30, 2023 was as follows (in thousands): Remainder of 2023 $ 60,708 2024 222,249 2025 203,020 2026 188,953 2027 142,779 Thereafter 961,242 Total $ 1,778,951 |
OTHER CONSOLIDATED BALANCE SHEE
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) | OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) Other Current Assets The following table presents the detail of other current assets (in thousands): September 30, 2023 December 31, 2022 Inventory, net $ 96,398 $ 97,703 Restricted cash (i) 572,754 639,780 Processing costs receivable 386,099 298,568 Prepaid expenses 111,752 141,262 Accounts receivable, net 127,367 140,508 Loans held for investment, net of allowance for loan losses (ii) 227,466 123,959 Other 174,197 185,485 Total $ 1,696,033 $ 1,627,265 (i) Includes a portion invested in money market funds. Refer to Note 5, Fair Value Measurements for further details . (ii) Refer to Note 7, Loans Held for Investment and Sale for further details . Accrued Expenses and Other Current Liabilities The following table presents the detail of accrued expenses and other current liabilities (in thousands): September 30, 2023 December 31, 2022 Accrued expenses $ 429,022 $ 382,571 Accounts payable 139,777 95,846 Customer deposits 199,136 141,893 Accrued transaction losses (i) 71,627 64,539 Accrued royalties 73,315 63,684 Operating lease liabilities, current 52,851 66,854 Other 309,699 258,129 Total $ 1,275,427 $ 1,073,516 (i) The Company is exposed to potential credit losses related to transactions processed by sellers that are subsequently subject to chargebacks when the Company is unable to collect from the sellers primarily due to insolvency. Generally, the Company estimates the potential loss rates based on historical experience that is continuously adjusted for new information and incorporates, where applicable, reasonable and supportable forecasts about future expectations. The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Accrued transaction losses, beginning of the period $ 62,758 $ 61,835 $ 64,539 $ 55,167 Provision for transaction losses 29,798 19,724 79,000 68,743 Charge-offs to accrued transaction losses (20,929) (20,547) (71,912) (62,898) Accrued transaction losses, end of the period $ 71,627 $ 61,012 $ 71,627 $ 61,012 Other Non-Current Assets The following table presents the detail of other non-current assets (in thousands): September 30, 2023 December 31, 2022 Property and equipment, net $ 316,866 $ 329,302 Investment in non-marketable equity securities (i) 205,144 208,880 Investment in bitcoin, net (ii) 102,479 102,303 Restricted cash 71,946 71,600 Other 95,094 101,454 Total $ 791,529 $ 813,539 (i) Investment in non-marketable equity securities represents the Company's investments in equity of non-public entities. These investments are measured using the measurement alternative and are therefore carried at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments of the same issuer. Adjustments are recorded within other expense (income), net on the condensed consolidated statements of operations. Unrealized gains and losses were immaterial during the three and nine months ended September 30, 2023. (ii) As of September 30, 2023, the Company has purchased a cumulative $220.0 million in bitcoin for investment purposes. Investment in bitcoin is accounted for as an indefinite-lived intangible asset, and does not include any bitcoin held for other parties, which is further described in Note 12, Bitcoin Held for Other Parties . Investment in bitcoin is subject to impairment losses if the fair value of bitcoin decreases below the carrying value during the assessed period. Impairment losses cannot be recovered for any subsequent increase in fair value until the sale of the asset. The Company recorded no impairment losses in the three and nine months ended September 30, 2023. As of September 30, 2023, the cumulative impairment charges to date were $117.7 million and the fair value of the investment in bitcoin was $216.5 million based on observable market prices, which was $114.0 million in excess of the Company's carrying value of $102.5 million after impairment charges. |
OTHER CONSOLIDATED BALANCE SH_2
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT) | OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) Other Current Assets The following table presents the detail of other current assets (in thousands): September 30, 2023 December 31, 2022 Inventory, net $ 96,398 $ 97,703 Restricted cash (i) 572,754 639,780 Processing costs receivable 386,099 298,568 Prepaid expenses 111,752 141,262 Accounts receivable, net 127,367 140,508 Loans held for investment, net of allowance for loan losses (ii) 227,466 123,959 Other 174,197 185,485 Total $ 1,696,033 $ 1,627,265 (i) Includes a portion invested in money market funds. Refer to Note 5, Fair Value Measurements for further details . (ii) Refer to Note 7, Loans Held for Investment and Sale for further details . Accrued Expenses and Other Current Liabilities The following table presents the detail of accrued expenses and other current liabilities (in thousands): September 30, 2023 December 31, 2022 Accrued expenses $ 429,022 $ 382,571 Accounts payable 139,777 95,846 Customer deposits 199,136 141,893 Accrued transaction losses (i) 71,627 64,539 Accrued royalties 73,315 63,684 Operating lease liabilities, current 52,851 66,854 Other 309,699 258,129 Total $ 1,275,427 $ 1,073,516 (i) The Company is exposed to potential credit losses related to transactions processed by sellers that are subsequently subject to chargebacks when the Company is unable to collect from the sellers primarily due to insolvency. Generally, the Company estimates the potential loss rates based on historical experience that is continuously adjusted for new information and incorporates, where applicable, reasonable and supportable forecasts about future expectations. The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Accrued transaction losses, beginning of the period $ 62,758 $ 61,835 $ 64,539 $ 55,167 Provision for transaction losses 29,798 19,724 79,000 68,743 Charge-offs to accrued transaction losses (20,929) (20,547) (71,912) (62,898) Accrued transaction losses, end of the period $ 71,627 $ 61,012 $ 71,627 $ 61,012 Other Non-Current Assets The following table presents the detail of other non-current assets (in thousands): September 30, 2023 December 31, 2022 Property and equipment, net $ 316,866 $ 329,302 Investment in non-marketable equity securities (i) 205,144 208,880 Investment in bitcoin, net (ii) 102,479 102,303 Restricted cash 71,946 71,600 Other 95,094 101,454 Total $ 791,529 $ 813,539 (i) Investment in non-marketable equity securities represents the Company's investments in equity of non-public entities. These investments are measured using the measurement alternative and are therefore carried at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments of the same issuer. Adjustments are recorded within other expense (income), net on the condensed consolidated statements of operations. Unrealized gains and losses were immaterial during the three and nine months ended September 30, 2023. (ii) As of September 30, 2023, the Company has purchased a cumulative $220.0 million in bitcoin for investment purposes. Investment in bitcoin is accounted for as an indefinite-lived intangible asset, and does not include any bitcoin held for other parties, which is further described in Note 12, Bitcoin Held for Other Parties . Investment in bitcoin is subject to impairment losses if the fair value of bitcoin decreases below the carrying value during the assessed period. Impairment losses cannot be recovered for any subsequent increase in fair value until the sale of the asset. The Company recorded no impairment losses in the three and nine months ended September 30, 2023. As of September 30, 2023, the cumulative impairment charges to date were $117.7 million and the fair value of the investment in bitcoin was $216.5 million based on observable market prices, which was $114.0 million in excess of the Company's carrying value of $102.5 million after impairment charges. |
BITCOIN HELD FOR OTHER PARTIES
BITCOIN HELD FOR OTHER PARTIES | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
BITCOIN HELD FOR OTHER PARTIES | BITCOIN HELD FOR OTHER PARTIESThe Company allows its Cash App customers to store their bitcoin in the Company’s digital wallets free of charge. The Company also holds an immaterial amount of bitcoin from select trading partners to facilitate bitcoin transactions for customers on Cash App. Other than bitcoin, the Company does not hold or store any other types of crypto-assets for customers or trading partners. The Company holds the cryptographic key information and maintains the internal recordkeeping of the bitcoin held for other parties. The Company's contractual arrangements state that its customers and trading partners retain legal ownership of the bitcoin; have the right to sell, pledge, or transfer the bitcoin; and also benefit from the rewards and bear the risks associated with the ownership, including as a result of any bitcoin price fluctuations. The customer also bears the risk of loss as a result of fraud or theft, unless the loss was caused by the Company’s gross negligence or the Company’s willful misconduct. The Company does not use any of the bitcoin custodied for customers or trading partners as collateral for any of the Company’s loans or other financing arrangements; nor does it lend or pledge bitcoin held for others to any third parties. The Company occasionally engages third-party custodians to store and safeguard bitcoin on the Company's behalf. As of September 30, 2023, an immaterial amount of the bitcoin was held by third-party custodians on the Company's behalf. The Company records a bitcoin safeguarding obligation liability and a corresponding bitcoin safeguarding asset based on the fair value of the bitcoin held for other parties at each reporting date in accordance with Staff Accounting Bulletin No. 121 ("SAB 121"). The Company was not aware of any actual or possible safeguarding loss events as of September 30, 2023 or December 31, 2022, and accordingly, the bitcoin safeguarding obligation liability and the associated bitcoin safeguarding asset were recorded at the same value. The following table summarizes the Company’s bitcoin held for other parties (in thousands, except number of bitcoin): September 30, 2023 December 31, 2022 Approximate number of bitcoin held for customers 25,083 25,850 Approximate number of bitcoin held for trading partners — 62 Total approximate number of bitcoin held for other parties 25,083 25,912 Safeguarding obligation liability related to bitcoin held for customers $ 676,363 $ 427,221 Safeguarding obligation liability related to bitcoin held for trading partners — 1,022 Safeguarding obligation liability related to bitcoin held for other parties $ 676,363 $ 428,243 Safeguarding asset related to bitcoin held for other parties $ 676,363 $ 428,243 |
INDEBTEDNESS
INDEBTEDNESS | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
INDEBTEDNESS | INDEBTEDNESS A) Notes The 2023 Convertible Notes, 2025 Convertible Notes, 2026 Convertible Notes, and 2027 Convertible Notes (each, as defined below, and collectively, the “Convertible Notes”), together with the Senior Notes (as defined below), are collectively referred to as the “Notes.” The net carrying amount of the Notes as of September 30, 2023 were as follows (in thousands): Principal Outstanding Unamortized Debt Issuance Costs Net Carrying Value 2031 Senior Notes $ 1,000,000 $ (10,785) $ 989,215 2026 Senior Notes 1,000,000 (7,497) 992,503 2027 Convertible Notes 575,000 (5,470) 569,530 2026 Convertible Notes 575,000 (4,415) 570,585 2025 Convertible Notes 1,000,000 (4,331) 995,669 Total $ 4,150,000 $ (32,498) $ 4,117,502 The net carrying amount of the Notes as of December 31, 2022 were as follows (in thousands): Principal Outstanding Unamortized Debt Issuance Costs Net Carrying Value 2031 Senior Notes $ 1,000,000 $ (11,829) $ 988,171 2026 Senior Notes 1,000,000 (9,586) 990,414 2027 Convertible Notes 575,000 (6,465) 568,535 2026 Convertible Notes 575,000 (5,685) 569,315 2025 Convertible Notes 1,000,000 (6,606) 993,394 2023 Convertible Notes (i) 460,630 (274) 460,356 Total $ 4,610,630 $ (40,445) $ 4,570,185 (i) Net carrying value disclosed as current portion of long-term debt within total current liabilities on the condensed consolidated balance sheet. The Company recognized interest expense on the Notes as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Contractual interest expense $ 16,291 $ 16,846 $ 49,223 $ 50,012 Amortization of debt issuance costs 2,587 2,766 7,947 8,208 Total $ 18,878 $ 19,612 $ 57,170 $ 58,220 Convertible Notes due in 2026 and 2027 On November 13, 2020, the Company issued an aggregate principal amount of $1.2 billion of convertible senior notes comprised of $575.0 million of convertible senior notes due 2026 ("2026 Convertible Notes") and $575.0 million of convertible senior notes due 2027 ("2027 Convertible Notes"). The 2026 Convertible Notes mature on May 1, 2026, unless earlier converted or repurchased, and bear a zero rate of interest. The 2027 Convertible Notes mature on November 1, 2027, unless earlier converted or repurchased, and bear interest at a rate of 0.25% payable semi-annually on May 1 and November 1 of each year. The circumstances to allow the holders to convert their 2026 Convertible Notes and 2027 Convertible Notes were not met during the nine months ended September 30, 2023. As of September 30, 2023, no principal had converted and the if-converted value did not exceed the outstanding principal amount on either the 2026 Convertible Notes or 2027 Convertible Notes. Convertible Notes due in 2025 On March 5, 2020, the Company issued an aggregate principal amount of $1.0 billion of convertible senior notes ("2025 Convertible Notes"). The 2025 Convertible Notes mature on March 1, 2025, unless earlier converted or repurchased, and bear interest at a rate of 0.125% payable semi-annually on March 1 and September 1 of each year. The circumstances to allow the holders to convert their 2025 Convertible Notes were not met during the nine months ended September 30, 2023. As of September 30, 2023, certain holders of the 2025 Convertible Notes had converted an immaterial aggregate principal amount of their 2025 Convertible Notes. The Company has settled the conversions through the issuance of an immaterial amount of shares of the Company's Class A common stock. As of September 30, 2023, the if-converted value of the 2025 Convertible Notes did not exceed the outstanding principal amount. Convertible Notes due in 2023 On May 25, 2018, the Company issued an aggregate principal amount of $862.5 million of convertible senior notes ("2023 Convertible Notes"). As of the maturity date on May 15, 2023, certain holders of the 2023 Convertible Notes had converted an aggregate principal amount of $401.9 million of their 2023 Convertible Notes, none of which was converted in the nine months ended September 30, 2023. The Company settled the conversions through the issuance of 5.2 million shares of the Company's Class A common stock and paid a total of $461.8 million in cash to settle the remaining unconverted principal balance, and interest, as of May 15, 2023. Convertible Note Hedge and Warrant Transactions In connection with the offering of the 2023 Convertible Notes, the Company entered into convertible note hedge transactions ("2023 Convertible Note Hedges") with certain financial institution counterparties ("2023 Note Hedge Counterparties") whereby the Company had the option to purchase a total of approximately 11.1 million shares of its Class A common stock at a price of approximately $77.85 per share. The total cost of the 2023 Convertible Note Hedges was $172.6 million. In addition, the Company sold warrants ("2023 Warrants") to the 2023 Note Hedge Counterparties whereby the 2023 Note Hedge Counterparties has the option to purchase a total of 11.1 million shares of the Company’s Class A common stock at a price of approximately $109.26 per share. The Company received $112.1 million in cash proceeds from the sale of the 2023 Warrants. Taken together, the purchase of the 2023 Convertible Note Hedges and sale of the 2023 Warrants were intended to reduce dilution from the conversion of the 2023 Convertible Notes and/or offset any cash payments the Company was required to make in excess of the principal amount of the converted 2023 Convertible Notes, as the case may be, and to effectively increase the overall conversion price from approximately $77.85 per share to approximately $109.26 per share. As these instruments are considered indexed to the Company's own stock and are considered equity classified, the 2023 Convertible Note Hedges and 2023 Warrants are recorded in stockholders’ equity, are not accounted for as derivatives, and are not remeasured each reporting period. The net costs incurred in connection with the 2023 Convertible Note Hedges and 2023 Warrants were recorded as a reduction to additional paid-in capital on the condensed consolidated balance sheets. The Company also exercised a pro-rata portion of the 2023 Convertible Note Hedges to offset the shares of the Company's Class A common stock issued to settle the conversion of the 2023 Convertible Notes. The 2023 Convertible Note Hedges were settled and no longer outstanding as of September 30, 2023. The Company had received 3.0 million shares of the Company's Class A common stock from the 2023 Note Hedge Counterparties, of which none were received in the nine months ended September 30, 2023. The 2023 Warrants expire evenly over a 60 trading day period starting on August 15, 2023. None of the warrants were exercised as of September 30, 2023. B) Revolving Credit Facility In May 2020, the Company entered into a revolving credit agreement with certain lenders, which provided a $500.0 million senior unsecured revolving credit facility (the "2020 Credit Facility") maturing in May 2023. On May 28, 2020, the Company amended the credit agreement for the 2020 Credit Facility (the "Credit Agreement") to permit the Company’s wholly-owned subsidiary, Square Capital, LLC (“Square Capital”), to incur indebtedness in an aggregate principal amount of up to $500.0 million pursuant to the Paycheck Protection Program Liquidity Facility (“PPPLF”) authorized under the Federal Reserve Act of 1913. In connection with its convertible debt offerings in November 2020, the Company entered into a second amendment to the Credit Agreement on November 9, 2020 to permit convertible debt in an aggregate principal amount not to exceed $3.6 billion. On January 28, 2021, the Company entered into a third amendment to the Credit Agreement to increase the amount of indebtedness that Square Capital is permitted to incur pursuant to the PPPLF from an aggregate principal amount of up to $500.0 million to an aggregate principal amount of up to $1.0 billion. On May 25, 2021, the Company entered into a fourth amendment to the Credit Agreement to, among other things, extend the maturity date of the loans advanced to May 1, 2024. On January 28, 2022, the Company entered into a fifth amendment to the Credit Agreement to permit certain existing obligations of Afterpay and its subsidiaries to remain outstanding as of and after the completion of the Afterpay acquisition. On February 23, 2022, the Company entered into a sixth amendment to the Credit Agreement to, among other things, provide for a new tranche of unsecured revolving loan commitments in an aggregate principal amount of up to $100.0 million. On June 9, 2023, the Company entered into a seventh amendment to the Credit Agreement to, among other things, extend the maturity date of the loans advanced to June 9, 2028 and provide for additional unsecured revolving loan commitments in an aggregate principal amount of up to $175.0 million. The Credit Agreement also contains a financial covenant that requires the Company to maintain a quarterly minimum liquidity amount (consisting of the sum of Unrestricted Cash and Cash Equivalents plus Marketable Securities, each as defined in the Credit Agreement) of at least $250.0 million, tested on a quarterly basis. The Company is obligated to pay customary fees for a credit facility of this size and type including a commitment fee of 0.10% to 0.20% per annum on the undrawn portion available under the 2020 Credit Facility, depending on the Company's total net leverage ratio. To date, no funds have been drawn and no letters of credit have been issued under the 2020 Credit Facility. As of September 30, 2023, $775.0 million remained available for draw. The Company incurred immaterial unused commitment fees during the three and nine months ended September 30, 2023 and September 30, 2022, respectively. As of September 30, 2023, the Company was in compliance with all financial covenants associated with the 2020 Credit Facility. Loans under the 2020 Credit Facility bear interest at the Company's option of (i) an annual rate based on the forward-looking term rate based on the Secured Overnight Financing Rate ("Term SOFR") or (ii) a base rate. Loans based on Term SOFR shall bear interest at a rate equal to Term SOFR plus a margin of between 1.25% and 1.75%, depending on the Company's total net leverage ratio. Loans based on the base rate shall bear interest at a rate based on the highest of the prime rate, the federal funds rate plus 0.50%, and Term SOFR with a tenor of one-month plus 1.00%, in each case, plus a margin ranging from 0.25% to 0.75%, depending on the Company's total net leverage ratio. The Credit Agreement also contains customary affirmative and negative covenants typical for a financing of this type that, among other things, restricts the Company and certain of its subsidiaries’ ability to incur additional indebtedness, create liens, merge or consolidate or make certain dispositions, pay dividends and make distributions, enter into restrictive agreements, enter into agreements with affiliates, and make certain investments and acquisitions. C) Warehouse Funding Facilities Following the acquisition of Afterpay, the Company assumed Afterpay's existing warehouse funding facilities. The Company has financing arrangements with financial institutions in Australia, New Zealand, the United States, and the United Kingdom (collectively, the “Warehouse Facilities”). The Warehouse Facilities have been arranged utilizing wholly-owned and consolidated entities formed for the sole purpose of financing the origination of consumer receivables to partly fund the Company's BNPL platform. Borrowings under the Warehouse Facilities are secured against the respective consumer receivables. These Warehouse Facilities have termination dates ranging from December 2023 to June 2026. As of September 30, 2023, the aggregate amount of the committed and uncommitted Warehouse Facilities, using the respective exchange rates at period-end, was $1.7 billion on a revolving basis, of which $0.9 billion was drawn and $0.8 billion remained available. Within the aggregate amount of facilities, the amount of uncommitted Warehouse Facilities was $100 million, of which none was drawn as of September 30, 2023 . All facilities contain portfolio parameters based on performance of the underlying consumer receivables, which each respective region has satisfied as of September 30, 2023. None of the Warehouse Facilities contain corporate financial covenants. All Warehouse Facilities are on a variable rate basis which aligns closely to the weighted average life of the consumer receivables they finance. Borrowings under these facilities bear interest at (i) a base rate aligned to either the local risk free rate, such as Term SOFR and the Sterling Overnight Index Average ("SONIA") or similar, and (ii) a margin which is set for the term of the availability period. In addition, each facility requires payment of immaterial commitment fees. The table below summarizes the amounts drawn on these facilities by year of maturity (in thousands): September 30, 2023 2024 $ 326,437 2025 28,906 2026 555,000 Total $ 910,343 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company recorded an income tax expense of $49.5 million and $43.8 million for the three and nine months ended September 30, 2023, respectively, compared to an income tax benefit of $17.3 million and $17.7 million for the three and nine months ended September 30, 2022, respectively. The difference between income before income tax at the U.S. federal statutory rate and the income tax expense recorded for the three and nine months ended September 30, 2023 is primarily due to a change in the valuation allowance in certain foreign jurisdictions, offset by the current year loss of an entity with deferred tax liabilities available to recognize those losses in future periods. The difference between the income tax expense for the three and nine months ended September 30, 2023, and the income tax benefit for the three and nine months September 30, 2022 primarily relates to the inclusion of an entity in the annual effective income tax rate for 2023 that was not included in 2022 and a change in the mix of income by jurisdiction. The Company is subject to income taxes in the U.S. and certain foreign tax jurisdictions. The tax provision for the three and nine months ended September 30, 2023 and September 30, 2022 is calculated on a jurisdictional basis. The Company estimated the worldwide income tax provision using the estimated annual effective income tax rate expected to be applicable for the full year. The Company’s effective tax rate may be subject to fluctuations during the year as new information is obtained, which may affect, among other things, the assumptions used to estimate the annual effective tax rate, including factors such as the mix of forecasted pre-tax earnings in the various jurisdictions in which the Company operates, changes in valuation allowances against deferred tax assets, the recognition and de-recognition of tax benefits related to uncertain tax positions, and changes in or the interpretation of tax laws in jurisdictions where the Company conducts business. As of September 30, 2023, the Company retained a full valuation allowance on its net deferred tax assets in certain jurisdictions. The realization of the Company’s deferred tax assets depends primarily on its ability to generate taxable income in future periods. The amount of deferred tax assets considered realizable in future periods may change as management continues to reassess the underlying factors it uses in estimating future taxable income. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Common Stock The Company has two classes of authorized common stock outstanding: Class A common stock and Class B common stock. Class A common stock and Class B common stock are referred to as "common stock" throughout these Notes to the Condensed Consolidated Financial Statements, unless otherwise noted. Holders of shares of Class A common stock are entitled to one vote per share, while holders of shares of Class B common stock are entitled to ten votes per share. Shares of the Company's Class B common stock are convertible into an equivalent number of shares of its Class A common stock and generally convert into shares of its Class A common stock upon transfer. The holders of Class A common stock and Class B common stock have no preemptive or other subscription rights and there are no redemption or sinking fund provisions with respect to such shares. All new stock options and stock-based awards are granted in Class A common stock. Warrants In conjunction with the 2023 Convertible Notes offering, the Company sold the 2023 Warrants whereby the counterparties have the option to purchase a total of approximately 11.1 million shares of the Company’s Class A common stock at a price of $109.26 per share. The 2023 Warrants expire evenly over a 60 trading day period starting on August 15, 2023. None of the warrants were exercised as of September 30, 2023. In conjunction with the 2025 Convertible Notes offering, the Company sold the 2025 Warrants whereby the counterparties have the option to purchase a total of approximately 8.3 million shares of the Company’s Class A common stock at a price of $161.34 per share. The 2025 Warrants expire evenly over a 60 trading day period starting on June 1, 2025. None of the warrants were exercised as of September 30, 2023. In conjunction with the 2026 Convertible Notes offering, the Company sold the 2026 Warrants whereby the counterparties have the option to purchase a total of approximately 1.9 million shares of the Company’s Class A common stock at a price of $368.16 per share. The 2026 Warrants expire evenly over a 60 trading day period starting on August 1, 2026. None of the warrants were exercised as of September 30, 2023. In conjunction with the 2027 Convertible Notes offering, the Company sold the 2027 Warrants whereby the counterparties have the option to purchase a total of approximately 1.9 million shares of the Company’s Class A common stock at a price of $414.18 per share. The 2027 Warrants expire evenly over a 60 trading day period starting on February 1, 2028. None of the warrants were exercised as of September 30, 2023. Conversion of Convertible Notes and Exercise of Convertible Note Hedges In connection with the conversion of the 2023 Convertible Notes, the Company issued an aggregate 5.2 million shares of Class A common stock as of the maturity date on May 15, 2023, of which no shares were issued in the three and nine months ended September 30, 2023. The Company also exercised a pro-rata portion of the 2023 Convertible Note Hedges and received 3.0 million shares of Class A common stock from the 2023 Note Hedge Counterparties to offset the shares issued as of September 30, 2023. No shares were received in the three and nine months ended September 30, 2023. Stock Plans The Company maintains two share-based employee compensation plans: the 2009 Stock Plan ("2009 Plan") and the 2015 Equity Incentive Plan ("2015 Plan"). The 2015 Plan serves as the successor to the 2009 Plan. The 2015 Plan became effective as of November 17, 2015. Outstanding awards under the 2009 Plan continue to be subject to the terms and conditions of the 2009 Plan. Since November 17, 2015, no additional awards have been nor will be granted in the future under the 2009 Plan. As of September 30, 2023, the total number of shares subject to stock options, restricted stock awards ("RSAs"), and restricted stock units ("RSUs") outstanding under the 2009 Plan was 2.5 million shares. Under the 2015 Plan, shares of the Company's Class A common stock are reserved for the issuance of incentive and nonstatutory stock options ("ISOs" and "NSOs", respectively), RSAs, RSUs, performance shares, and stock bonuses to qualified employees, directors, and consultants. The awards must be granted at a price per share not less than the fair market value at the date of grant. Initially, 30.0 million shares were reserved under the 2015 Plan and any shares subject to options or other similar awards granted under the 2009 Plan that expire, are forfeited, are repurchased by the Company, or otherwise terminate unexercised, will become available under the 2015 Plan. The number of shares available for issuance under the 2015 Plan has been and will be increased on the first day of each fiscal year, in an amount equal to the least of (i) 40.0 million shares, (ii) 5% of the outstanding shares on the last day of the immediately preceding fiscal year, or (iii) such number of shares determined by the administrator of the plan. The administrator consists of the board of directors who then delegates the responsibilities to the compensation committee. As of September 30, 2023, the total number of shares subject to stock options, RSAs, and RSUs outstanding under the 2015 Plan was 44.5 million, and 123.6 million shares were available for future issuance. A summary of stock option activity for the nine months ended September 30, 2023 is as follows (in thousands, except per share data): Number of Stock Options Weighted Weighted Aggregate Outstanding, beginning of the year 6,739 $ 40.37 4.02 $ 224,484 Granted 682 65.16 Exercised (1,375) 12.06 Forfeited (108) 107.06 Expired (25) 80.33 Outstanding, end of the period 5,913 $ 48.43 3.53 $ 90,816 Exercisable, end of the period 4,801 $ 38.97 2.69 $ 90,816 Restricted Stock Activity Activity related to RSAs and RSUs during the nine months ended September 30, 2023 is set forth below (in thousands, except per share data): Number of Weighted Unvested, beginning of the year 28,300 $ 97.89 Granted 25,918 64.43 Vested (10,325) 88.57 Forfeited (2,787) 95.60 Unvested, end of the period 41,106 $ 79.29 As of September 30, 2023, all remaining RSAs were vested and there were no RSAs outstanding. Share-Based Compensation The following table summarizes the effects of share-based compensation on the Company's condensed consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Cost of revenue $ 143 $ 104 $ 427 $ 352 Product development 245,244 184,569 666,512 508,781 Sales and marketing 35,703 28,744 97,858 75,133 General and administrative 64,600 49,316 179,732 210,528 Total $ 345,690 $ 262,733 $ 944,529 $ 794,794 The Company recorded $18.5 million and $51.0 million of share-based compensation expense related to the Company's 2015 Employee Stock Purchase Plan during the three and nine months ended September 30, 2023, respectively, compared to $16.0 million and $41.9 million during the three and nine months ended September 30, 2022, respectively, which are included in the table above. The total share-based compensation expense for the nine months ended September 30, 2022 also includes $66.3 million rel ated to the acceleration of various share-based arrangements associated with the acquisition of Afterpay, which is included in the table above. The Company capitalized $9.4 million and $22.5 million of share-based compensation expense related to capitalized software costs during the three and nine months ended September 30, 2023, respectively, compared to $5.6 million and $13.2 million during the three and nine months ended September 30, 2022, respectively. As of September 30, 2023, there was $3.2 billion of total unrecognized compensation cost related to outstanding stock options and RSUs that are expected to be recognized over a weighted-average period of 2.8 years. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding adjusted for the dilutive effect of all potential shares of common stock. In periods when the Company reported a net loss, diluted net loss per share is the same as basic net loss per share because the effects of potentially dilutive items were anti-dilutive. The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Numerator: Net loss $ (33,760) $ (18,744) $ (178,928) $ (435,384) Less: Net loss attributable to noncontrolling interests (4,806) (4,033) (10,630) (8,460) Net loss attributable to common stockholders $ (28,954) $ (14,711) $ (168,298) $ (426,924) Denominator: Basic shares: Weighted-average shares used to compute basic net loss per share 611,276 592,672 606,767 572,234 Diluted shares: Weighted-average shares used to compute diluted net loss per share 611,276 592,672 606,767 572,234 Net loss per share attributable to common stockholders: Basic $ (0.05) $ (0.02) $ (0.28) $ (0.75) Diluted $ (0.05) $ (0.02) $ (0.28) $ (0.75) The following potential common shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Stock options, restricted stock, and employee stock purchase plan 50,272 35,272 44,909 30,338 Convertible notes 12,109 18,025 15,034 18,030 Common stock warrants 23,188 27,929 23,188 37,241 Total anti-dilutive securities 85,569 81,226 83,131 85,609 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS In July 2019, the Company entered into a lease agreement for office space in St. Louis, Missouri, from an affiliate of one of the Company’s co-founders and current member of its board of directors, Mr. Jim McKelvey, for a term of 15.5 years, with options to extend the lease term for two five-year terms. The lease possession date varied by floor, beginning in May 2020. As of September 30, 2023, the Company had recorded right-of-use assets of $10.7 million and associated lease liabilities of $16.9 million related to this lease arrangement. Under the lease agreement, the Company also has an option to terminate the lease for up to 50% of the leased space any time between January 1, 2024 and December 31, 2026, as well as an option to terminate the lease for the entire property on January 1, 2034. Termination penalties specified in the lease agreement will apply if the Company exercises any of the options to terminate the lease. On January 2, 2023, the Company notified the lessor of its intention to exercise the early termination option with respect to approximately 48% of the leased space, effective December 31, 2023. As a result, the Company paid a termination penalty of approximately $5.2 million to exercise the option. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Litigation and Regulatory Matters The Company is currently subject to, and may in the future be involved in, various litigation matters, legal claims, investigations, and regulatory proceedings. The Company received Civil Investigative Demands (“CIDs”) from the Consumer Financial Protection Bureau (“CFPB”), as well as from Attorneys General from multiple states, seeking the production of information related to, among other things, Cash App’s handling of customer complaints and disputes. The Company is cooperating with the CFPB and the state Attorneys General in connection with these CIDs. The Company has accrued a liability for an estimated amount in connection with these CIDs in accordance with ASC 450-20, Contingencies: Loss Contingencies . The accrued amount was not material as of September 30, 2023. Given the status of these matters, it is not possible to reliably determine the range of potential liability in excess of the accrued amounts that could result from these investigations. The Company regularly assesses the likelihood of adverse outcomes resulting from litigation and regulatory proceedings and adjusts the financial statements based on such assessments. The eventual outcome of these matters may differ materially from the estimates the Company has currently accrued in the financial statements. In addition, the Company is subject to various legal matters, investigations, subpoenas, inquiries or audits, claims, lawsuits and disputes, including with regulatory bodies and governmental agencies. For example, the Company received inquiries from the SEC and Department of Justice shortly after the publication of a short seller report in March 2023. The Company believes the inquiries primarily relate to the allegations raised in the short seller report. The Company cannot at this time fairly estimate a reasonable range of exposure, if any, of the potential liability, if any, with respect to any of these matters. Although we may be subject to an adverse decision or settlement, the Company does not believe that the final disposition of any of these other matters will have a material adverse effect on its results of operations, financial position, or liquidity. However, the Company cannot give any assurance regarding the ultimate outcome of any of these matters, and their resolution could be material to the Company's operating results. Purchase Commitments During the year ended December 31, 2022, we entered into non-cancelable purchase obligations related to cloud computing infrastructure. The commitment amounts in the table below are associated with contracts that are enforceable and legally binding and that specify all significant terms, including fixed or minimum services to be used, and the approximate timing of the actions under the contracts. As of September 30, 2023, the future minimum payments under the purchase commitments were as follows (in thousands): Payments Due By Period Remainder of 2023 $ 44,606 2024 300,554 2025 316,425 2026 263,300 2027 315,100 Total $ 1,239,985 Other Contingencies The Company is under examination, or may be subject to examination, by several tax authorities. These examinations may lead to proposed adjustments to the Company's taxes or net operating losses with respect to years under examination, as well as subsequent periods. The Company regularly assesses the likelihood of adverse outcomes resulting from tax examinations to determine the adequacy of the Company's provision for direct and indirect taxes. The Company continues to monitor the progress of ongoing discussions with tax authorities and the effect, if any, on the Company's provision for direct and indirect taxes. Management believes that an adequate provision has been made for any adjustments that may result from tax examinations. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in the Company's tax audits are resolved in a manner not consistent with the Company’s expectations, the Company could be required to adjust the Company's provision for direct and indirect taxes in the period such resolution occurs. |
SEGMENT AND GEOGRAPHICAL INFORM
SEGMENT AND GEOGRAPHICAL INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHICAL INFORMATION The Company reports its segments to reflect the manner in which the Company's chief operating decision maker ("CODM") reviews and assesses performance. Accordingly, the Company has two reportable segments, Square and Cash App. The financial results of the Company's BNPL platform have been allocated equally to the Cash App and Square segments as management concluded that the BNPL platform will contribute equally to both the Cash App and Square platforms. Further, Afterpay does not have a segment manager who reports to the CODM. Rather, the operations of Afterpay are managed by the segment managers of Cash App and Square, who are responsible for allocating resources and evaluating the performance of Afterpay. Products and services that are not assigned to a specific reportable segment, including but not limited to TIDAL, TBD, and Spiral, are aggregated and presented within a general Corporate and Other category. Square and Cash App are defined as follows: • Cash App includes the financial tools available to individuals within the mobile Cash App, including peer-to-peer payments, bitcoin and stock investments. Cash App also includes Cash App Card, which is linked to customer stored balances that customers can use to pay for purchases or withdraw funds from an ATM. • Square includes managed payment services, software solutions, hardware, and financial services offered to sellers, excluding those that involve Cash App. The primary financial measures used by the CODM to evaluate performance and allocate resources are revenue and gross profit. The CODM does not evaluate performance or allocate resources based on segment asset data, and therefore such information is not included. The following tables present information on the reportable segments revenue and segment gross profit (in thousands): Three Months Ended Nine Months Ended Cash App Square Corporate and Other (i) Total Cash App Square Corporate and Other (i) Total Revenue: Transaction-based revenue $ 120,783 $ 1,537,885 $ — $ 1,658,668 $ 389,186 $ 4,329,841 $ — $ 4,719,027 Subscription and services-based revenue 1,040,591 402,126 50,183 1,492,900 3,045,302 1,124,465 150,854 4,320,621 Hardware revenue — 42,341 — 42,341 — 124,714 — 124,714 Bitcoin revenue 2,423,584 — — 2,423,584 6,978,219 — — 6,978,219 Segment revenue $ 3,584,958 $ 1,982,352 $ 50,183 $ 5,617,493 $ 10,412,707 $ 5,579,020 $ 150,854 $ 16,142,581 Segment gross profit (ii) $ 983,858 $ 898,969 $ 15,622 $ 1,898,449 $ 2,883,141 $ 2,557,525 $ 38,468 $ 5,479,134 Three Months Ended Nine Months Ended Cash App Square Corporate and Other (i) Total Cash App Square Corporate and Other (i) Total Revenue: Transaction-based revenue $ 118,459 $ 1,399,431 $ — $ 1,517,890 $ 343,768 $ 3,882,798 $ — $ 4,226,566 Subscription and services-based revenue 803,673 331,703 56,135 1,191,511 2,146,163 932,188 167,573 3,245,924 Hardware revenue — 43,388 — 43,388 — 128,765 — 128,765 Bitcoin revenue 1,762,752 — — 1,762,752 5,279,430 — — 5,279,430 Segment revenue $ 2,684,884 $ 1,774,522 $ 56,135 $ 4,515,541 $ 7,769,361 $ 4,943,751 $ 167,573 $ 12,880,685 Segment gross profit (ii) $ 774,470 $ 782,968 $ 9,651 $ 1,567,089 $ 2,103,023 $ 2,199,628 $ 29,046 $ 4,331,697 (i) Corporate and other represents results related to products and services that are not assigned to a specific reportable segment, and intersegment eliminations between Cash App and Square. (ii) Segment gross profit for Cash App for the three and nine months ended September 30, 2023 included $8.0 million and $24.9 million of amortization of acquired technology assets expense, respectively. Segment gross profit for Cash App for the three and nine months ended September 30, 2022 included $8.5 million and $23.8 million of amortization of acquired technology assets expense, respectively. Segment gross profit for Square for the three and nine months ended September 30, 2023 included $8.5 million and $25.5 million of amortization of acquired technology assets expense, respectively. Segment gross profit for Square for the three and nine months ended September 30, 2022 included $8.6 million and $23.8 million of amortization of acquired technology assets expense, respectively. Amortization of acquired technology assets expense included in Corporate and Other was immaterial for the three and nine months ended September 30, 2023 and September 30, 2022. The following table provides a reconciliation of total segment gross profit to the Company’s loss before applicable income taxes (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Total segment gross profit $ 1,898,449 $ 1,567,089 $ 5,479,134 $ 4,331,697 Less: Product development 713,788 548,037 2,035,397 1,531,088 Less: Sales and marketing 479,381 485,838 1,512,999 1,518,227 Less: General and administrative 480,885 395,437 1,463,003 1,235,306 Less: Transaction, loan, and consumer receivable losses 177,338 147,586 485,005 395,433 Less: Bitcoin impairment losses — 1,619 — 37,580 Less: Amortization of customer and other intangible assets 56,965 37,361 130,917 103,414 Less: Interest expense (income), net (21,415) 6,042 (28,520) 34,756 Less: Other expense (income), net (4,262) (18,798) 15,488 (71,036) Income (loss) before applicable income taxes $ 15,769 $ (36,033) $ (135,155) $ (453,071) Revenue by geography is based on the addresses of the sellers or customers. The following table details revenue by geographic area (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 United States $ 5,227,987 $ 4,195,291 $ 15,064,180 $ 12,007,976 International 389,506 320,250 1,078,401 872,709 Total $ 5,617,493 $ 4,515,541 $ 16,142,581 $ 12,880,685 No individual country from the international markets contributed more than 10% of total revenue for the three and nine months ended September 30, 2023 and September 30, 2022. Long-Lived Assets The following table details long-lived assets by geography (in thousands): September 30, 2023 December 31, 2022 United States $ 7,787,309 $ 8,023,535 Australia 4,498,367 4,801,434 Other international 1,838,864 1,858,300 Total $ 14,124,540 $ 14,683,269 Assets by reportable segment were not included, as this information is not reviewed by the CODM to make operating decisions or allocate resources and is reviewed on a consolidated basis. In the fourth quarter of 2023, the Company reorganized its business structure and moved the business activities and management of the Company's BNPL platform fully into Cash App. The Company believes that this transition will allow it to better focus on consumer-based commerce as well as the development of its financial tools within Cash App. Accordingly, beginning in the fourth quarter of 2023, the Company will begin to report the financial results of the BNPL platform solely within the Cash App segment. The Company will also reflect this change for the applicable historical periods it presents in future filings. The Company's remaining businesses, including, but not limited to, TIDAL, TBD, and Spiral, will continue to be aggregated and presented within a general Corporate and Other category. |
SUPPLEMENTAL CASH FLOW INFORMAT
SUPPLEMENTAL CASH FLOW INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION The supplemental disclosures of cash flow information consist of the following (in thousands): Nine Months Ended 2023 2022 Supplemental cash flow data: Cash paid for interest $ 80,120 $ 42,836 Cash paid for income taxes 61,325 18,629 Supplemental disclosures of non-cash investing and financing activities: Right-of-use assets obtained in exchange for operating lease obligations 4,381 37,939 Purchases of property and equipment in accounts payable and accrued expenses 2,766 11,835 Deferred purchase consideration related to business combinations — 14,377 Fair value of common stock issued related to business combinations — (13,827,929) Fair value of common stock issued to settle the conversion of convertible notes — (2,551) Fair value of common stock shares received to settle convertible note hedges — 133,144 Fair value of common stock issued in connection with the exercise of common stock warrants — (806,446) Bitcoin lent to third-party borrowers — 5,934 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSOn October 26, 2023, the board of directors of the Company authorized the repurchase of up to $1 billion of the Company’s Class A common stock. Repurchases may be made from time to time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors. The repurchase program does not obligate the Company to acquire any particular amount of its Class A common stock and may be suspended at any time at the Company’s discretion. The timing and number of shares repurchased will depend on a variety of factors, including the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ (28,954) | $ (14,711) | $ (168,298) | $ (426,924) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Amrita Ahuja [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | On August 17, 2023, Amrita Ahuja, our Chief Operating Officer and Chief Financial Officer, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 178,854 shares of our Class A common stock. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until November 22, 2024, or earlier if all transactions under the trading arrangement are completed. | |
Name | Amrita Ahuja | |
Title | Chief Operating Officer and Chief Financial Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 17, 2023 | |
Arrangement Duration | 463 days | |
Aggregate Available | 178,854 | 178,854 |
DESCRIPTION OF BUSINESS AND S_2
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying interim condensed consolidated financial statements of the Company are unaudited. These interim condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") and the applicable rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial information. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The December 31, 2022 condensed consolidated balance sheet was derived from the audited financial statements as of that date, but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. The accompanying unaudited interim condensed consolidated financial statements have been prepared on the same basis as the audited consolidated financial statements and, in the opinion of management, reflect all adjustments of a normal recurring nature considered necessary to state fairly the Company's consolidated financial position, results of operations, comprehensive income (loss), and cash flows for the interim periods. The condensed consolidated financial statements include the financial statements of Block and its wholly-owned and majority-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. Minority interests are recorded as a noncontrolling interest, which is reported as a component of stockholders' equity on the condensed consolidated balance sheets. The interim results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023, or for any other future annual or interim period. The information included in this Quarterly Report on Form 10-Q should be read in conjunction with the Consolidated Financial Statements and related notes in the Company's Annual Report on Form 10-K for the year ended December 31, 2022. |
Use of Estimates | Use of Estimates The preparation of the Company’s condensed consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses, as well as related disclosure of contingent assets and liabilities. Actual results could differ from the Company’s estimates. To the extent that there are material differences between these estimates and actual results, the Company’s financial condition or operating results will be materially affected. The Company bases its estimates on current and past experience, to the extent that historical experience is predictive of future performance and other assumptions that the Company believes are reasonable under the circumstances. The Company evaluates these estimates on an ongoing basis. |
Concentration of Credit Risk | Concentration of Credit Risk For the three and nine months ended September 30, 2023 and September 30, 2022, the Company had no customer that accounted for greater than 10% of total net revenue. The Company had three third-party payment processors that represented approximately 47%, 31% and 9% of settlements receivable as of September 30, 2023. As of December 31, 2022, there were two parties that represented approximately 54% and 31% of settlements receivable. In both periods, all other third-party payment processors were insignificant. Certain of the Company's products are reliant on third-party service providers such as partner banks, card issuers, and payment service providers. The Company's relationships with third-party service providers may result in operational concentration risks for some of these products. Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash and cash equivalents, restricted cash, marketable debt securities, settlements receivable, customer funds, consumer receivables, loans held for sale, and loans held for investment. To mitigate the risk of concentration associated with cash and cash equivalents, as well as restricted cash, funds are held with creditworthy institutions and, at certain times, temporarily swept into insured programs overnight to reduce single firm concentration risk. Amounts on deposit may exceed federal deposit insurance limits. The associated risk of concentration for marketable debt securities is mitigated by holding a diversified portfolio of highly rated investments. Settlements receivable are amounts due from well-established payment processing companies and normally take one two |
Sales and Marketing Expenses | Sales and Marketing Expenses Advertising costs are expensed as incurred and in cluded in sales and marketing expenses on the condensed consolidated statements of operations. Total advertising costs wer e $78.1 million and $283.3 million for the three and nine months ended September 30, 2023, respectively, compared to $91.6 million and $405.6 million for the three and nine months ended September 30, 2022, respectively. The Company also records |
Recently Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In March 2022, the Financial Accounting Standards Board ("FASB") issued ASU No. 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging—Portfolio Layer Method ("ASU 2022-01") related to the portfolio layer method of hedge accounting. The amendments allow nonprepayable financial assets to be included in a closed portfolio hedge using the portfolio layer method. ASU 2022-01 also allows for multiple hedged layers to be designated for a single closed portfolio of financial assets or one or more beneficial interests secured by a portfolio of financial instruments. The Company adopted this guidance effective January 1, 2023, and has applied the guidance prospectively. The adoption of this guidance did not have a material impact on the Company's financial statements and related disclosures. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures (“ASU 2022-02”) related to troubled debt restructuring and vintage disclosures for financing receivables. The amendments eliminate recognition and measurement guidance for troubled debt restructurings for creditors and requires entities to evaluate if the modification represents a new loan or a continuation of the existing loan. ASU 2022-02 also enhances disclosure requirements for certain loan refinancing and restructurings made to borrowers experiencing financial difficulty and requires disclosure of current period write-offs by year of origination for financing receivables. The Company adopted this guidance effective January 1, 2023, and has applied the guidance prospectively. The adoption of this guidance did not have a material impact on the Company's financial statements and related disclosures. Recently Issued Accounting Pronouncements Not Yet Adopted In June 2022, the FASB issued ASU No. 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions ("ASU 2022-03") related to equity securities. The amendments clarify that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. An entity is prohibited from recognizing a contractual sale restriction as a separate unit of account. ASU 2022-03 also requires specific disclosures related to equity securities that are subject to contractual restrictions, including the fair value of such equity securities, the nature and remaining duration of the corresponding restrictions, and any circumstances that could cause a lapse in the restrictions. The amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of this guidance to have a material impact on the Company's financial statements and related disclosures. |
Fair Value of Financial Instruments | The Company measures its cash equivalents, customer funds, short-term and long-term marketable debt securities, and marketable equity investments at fair value. The Company classifies these investments within Level 1 or Level 2 of the fair value hierarchy because the Company values these investments using quoted market prices or alternative pricing sources and models utilizing market observable inputs. The Company measures its safeguarding obligation liability related to bitcoin held for other parties at the fair value of the bitcoin that the Company holds for other parties and classifies the liability within Level 2 because the Company uses observable market prices of the underlying bitcoin as an input for the valuation. The Company also classifies its safeguarding asset related to bitcoin held for other parties within Level 2, unless the asset's carrying amount is adjusted to reflect any actual or potential safeguarding loss events, in which case it would be classified within Level 3. The Company was not aware of any actual or possible safeguarding loss events as of |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table presents the Company's net revenue disaggregated by revenue source (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Revenue from contracts with customers: Transaction-based revenue $ 1,658,668 $ 1,517,890 $ 4,719,027 $ 4,226,566 Subscription and services-based revenue 1,077,457 902,708 3,187,465 2,427,193 Hardware revenue 42,341 43,388 124,714 128,765 Bitcoin revenue 2,423,584 1,762,752 6,978,219 5,279,430 Revenue from other sources: Subscription and services-based revenue (i) 415,443 288,803 1,133,156 818,731 Total net revenue $ 5,617,493 $ 4,515,541 $ 16,142,581 $ 12,880,685 (i) Subscription and services-based revenue generated primarily from Consumer and Commercial loans. |
INVESTMENTS IN DEBT SECURITIES
INVESTMENTS IN DEBT SECURITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-term and Long-term Investments | The Company's short-term and long-term investments as of September 30, 2023 were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term debt securities: U.S. agency securities $ 92,819 $ 1 $ (2,079) $ 90,741 Corporate bonds 272,928 5 (3,792) 269,141 Commercial paper 29,532 — — 29,532 Municipal securities 9,401 — (381) 9,020 Certificates of deposit 173,155 — — 173,155 U.S. government securities 592,466 9 (6,763) 585,712 Foreign government securities 3,895 — (52) 3,843 Total $ 1,174,196 $ 15 $ (13,067) $ 1,161,144 Long-term debt securities: U.S. agency securities $ 16,120 $ 2 $ (252) $ 15,870 Corporate bonds 169,426 25 (759) 168,692 Municipal securities 1,495 — (259) 1,236 U.S. government securities 243,071 12 (2,679) 240,404 Foreign government securities — — — — Total $ 430,112 $ 39 $ (3,949) $ 426,202 The Company's short-term and long-term investments as of December 31, 2022 were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Short-term debt securities: U.S. agency securities $ 96,545 $ 16 $ (2,120) $ 94,441 Corporate bonds 368,110 2 (7,475) 360,637 Commercial paper 31,503 — — 31,503 Municipal securities 9,884 — (191) 9,693 Certificates of deposit 6,400 — — 6,400 U.S. government securities 580,568 6 (8,937) 571,637 Foreign government securities 7,795 — (255) 7,540 Total $ 1,100,805 $ 24 $ (18,978) $ 1,081,851 Long-term debt securities: U.S. agency securities $ 74,097 $ — $ (3,782) $ 70,315 Corporate bonds 245,891 6 (9,171) 236,726 Municipal securities 10,415 3 (664) 9,754 U.S. government securities 268,902 — (13,210) 255,692 Foreign government securities 1,000 — (58) 942 Total $ 600,305 $ 9 $ (26,885) $ 573,429 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | The Company's gross unrealized losses and fair values for those investments that were in an unrealized loss position as of September 30, 2023 and December 31, 2022, aggregated by investment category and the length of time that individual securities have been in a continuous loss position, were as follows (in thousands): September 30, 2023 Less than 12 Months Greater than 12 Months Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Short-term debt securities: U.S. agency securities $ 22,107 $ (42) $ 63,635 $ (2,037) $ 85,742 $ (2,079) Corporate bonds 78,144 (176) 179,035 (3,616) 257,179 (3,792) Municipal securities — — 9,020 (381) 9,020 (381) U.S. government securities 164,876 (293) 285,128 (6,470) 450,004 (6,763) Foreign government securities — — 3,843 (52) 3,843 (52) Total $ 265,127 $ (511) $ 540,661 $ (12,556) $ 805,788 $ (13,067) Long-term debt securities: U.S. agency securities $ 8,956 $ (44) $ 3,792 $ (208) $ 12,748 $ (252) Corporate bonds 134,742 (547) 10,148 (212) 144,890 (759) Municipal securities 889 (111) 347 (148) 1,236 (259) U.S. government securities 165,440 (816) 36,033 (1,863) 201,473 (2,679) Foreign government securities — — — — — — Total $ 310,027 $ (1,518) $ 50,320 $ (2,431) $ 360,347 $ (3,949) December 31, 2022 Less than 12 Months Greater than 12 Months Total Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Short-term debt securities: U.S. agency securities $ 8,572 $ (24) $ 84,628 $ (2,096) $ 93,200 $ (2,120) Corporate bonds 34,795 (423) 320,748 (7,052) 355,543 (7,475) Municipal securities 587 (13) 5,811 (178) 6,398 (191) U.S. government securities 146,974 (839) 394,880 (8,098) 541,854 (8,937) Foreign government securities — — 7,540 (255) 7,540 (255) Total $ 190,928 $ (1,299) $ 813,607 $ (17,679) $ 1,004,535 $ (18,978) Long-term debt securities: U.S. agency securities $ 11,501 $ (20) $ 58,814 $ (3,762) $ 70,315 $ (3,782) Corporate bonds 33,862 (262) 201,791 (8,909) 235,653 (9,171) Municipal securities 467 (33) 8,784 (631) 9,251 (664) U.S. government securities 54,405 (590) 201,288 (12,620) 255,693 (13,210) Foreign government securities — — 942 (58) 942 (58) Total $ 100,235 $ (905) $ 471,619 $ (25,980) $ 571,854 $ (26,885) |
Contractual Maturities of Short-Term and Long-Term Investments | The contractual maturities of the Company's short-term and long-term investments as of September 30, 2023 were as follows (in thousands): Amortized Cost Fair Value Due in one year or less $ 1,174,196 $ 1,161,144 Due in one to five years 430,112 426,202 Total $ 1,604,308 $ 1,587,346 |
CUSTOMER FUNDS (Tables)
CUSTOMER FUNDS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Assets Underlying Customer Funds | The following table presents the assets underlying customer funds (in thousands): September 30, 2023 December 31, 2022 Cash $ 1,603,994 $ 1,748,983 Cash equivalents: Money market funds 566,451 851,296 Reverse repurchase agreement (i) 743,292 580,045 Total customer funds $ 2,913,737 $ 3,180,324 (i) The Company has accounted for the reverse repurchase agreement with a third-party as an overnight lending arrangement, collateralized by the securities subject to the repurchase agreement. The Company classified the amounts due from the counterparty as cash equivalents due to their short-term nature. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The Company’s assets and liabilities that are measured at fair value on a recurring basis were classified as follows (in thousands): September 30, 2023 December 31, 2022 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Cash equivalents: Money market funds $ 861,104 $ — $ — $ 1,230,924 $ — $ — U.S. government securities 24,274 — — — — — U.S. agency securities — — — — 7,923 — Commercial paper — 23,441 — — 25,080 — Corporate bonds — 209 — — — — Restricted cash: Money market funds 195,075 — — — — — Customer funds: Money market funds 566,451 — — 851,296 — — Reverse repurchase agreement 743,292 — — 580,045 — — Short-term debt securities: U.S. government securities 585,712 — — 571,637 — — Corporate bonds — 269,141 — — 360,637 — U.S. agency securities — 90,741 — — 94,441 — Certificates of deposit — 173,155 — — 6,400 — Commercial paper — 29,532 — — 31,503 — Municipal securities — 9,020 — — 9,693 — Foreign government securities — 3,843 — — 7,540 — Long-term debt securities: U.S. government securities 240,404 — — 255,692 — — Corporate bonds — 168,692 — — 236,726 — U.S. agency securities — 15,870 — — 70,315 — Municipal securities — 1,236 — — 9,754 — Foreign government securities — — — — 942 — Other: Investment in marketable equity securities 8,267 — — 11,092 — — Safeguarding asset related to bitcoin held for other parties — 676,363 — — 428,243 — Safeguarding obligation liability related to bitcoin held for other parties — (676,363) — — (428,243) — Total assets (liabilities) measured $ 3,224,579 $ 784,880 $ — $ 3,500,686 $ 860,954 $ — September 30, 2023 December 31, 2022 Carrying Value Fair Value (Level 2) Carrying Value Fair Value (Level 2) 2031 Senior Notes $ 989,215 $ 778,065 $ 988,171 $ 782,857 2026 Senior Notes 992,503 892,874 990,414 885,876 2027 Convertible Notes 569,530 428,035 568,535 433,082 2026 Convertible Notes 570,585 477,009 569,315 464,066 2025 Convertible Notes 995,669 925,474 993,394 943,188 2023 Convertible Notes — — 460,356 480,925 Total $ 4,117,502 $ 3,501,457 $ 4,570,185 $ 3,989,994 The estimated fair value and carrying value of loans held for sale and loans held for investment were as follows (in thousands): September 30, 2023 December 31, 2022 Carrying Value Fair Value (Level 3) Carrying Value Fair Value (Level 3) Loans held for sale $ 597,035 $ 602,105 $ 474,036 $ 491,807 Loans held for investment 227,466 236,891 123,959 126,122 Total $ 824,501 $ 838,996 $ 597,995 $ 617,929 |
CONSUMER RECEIVABLES, NET (Tabl
CONSUMER RECEIVABLES, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Aging Analysis of Consumer Receivables held for Investment | The following table presents an aging analysis of the amortized cost of consumer receivables by delinquency status (in thousands): September 30, 2023 December 31, 2022 Non-delinquent loans $ 1,467,168 $ 1,643,874 1 - 60 days past due 287,711 295,830 61 - 90 days past due 25,020 20,612 90+ days past due 65,364 62,134 Total amortized cost $ 1,845,263 $ 2,022,450 |
Activity in Allowance for Credit Losses | The following table summarizes activity in the allowance for credit losses subsequent to the acquisition of Afterpay (in thousands): Three Months Ended September 30, 2023 2022 Allowance for credit losses, beginning of the period $ 153,772 $ 121,579 Provision for credit losses 60,365 53,021 Charge-offs and other adjustments (63,143) (28,516) Foreign exchange effect (680) (4,113) Allowance for credit losses, end of the period $ 150,314 $ 141,971 Nine Months Ended September 30, 2023 From Acquisition on Allowance for credit losses, beginning of the period (i) $ 151,290 $ 115,552 Provision for credit losses 172,549 146,014 Charge-offs and other adjustments (172,982) (116,624) Foreign exchange effect (543) (2,971) Allowance for credit losses, end of the period $ 150,314 $ 141,971 (i) Consumer receivables acquired from Afterpay that reflected a more-than-insignificant deterioration of credit from origination were considered purchased credit deteriorated ("PCD") receivables. For PCD consumer receivables, the initial estimate of expected credit losses was recognized in the allowance for credit losses on the date of acquisition using the same methodology as other consumer receivables. |
LOANS HELD FOR INVESTMENT AND_2
LOANS HELD FOR INVESTMENT AND SALE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Loans Held for Sale by Category | The following table presents the Company’s loans held for sale aggregated by category (in thousands): September 30, 2023 December 31, 2022 Commercial $ 372,922 $ 327,449 Consumer 199,497 120,870 Other 24,616 25,717 Total $ 597,035 $ 474,036 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Assets Acquired and Liabilities Assumed | The table below summarizes the consideration paid for Afterpay and the assessment of the fair value of the assets acquired and liabilities assumed at the closing date (in thousands, except share data): Consideration: Stock (113,617,352 shares of Class A common stock, excluding value accounted as post-combination expense of $66,337) $ 13,827,929 Cash paid to settle tax withholding in connection with replacement awards 8,693 Total $ 13,836,622 Recognized amounts of identifiable assets acquired and liabilities assumed: Current assets (inclusive of cash, cash equivalents, and restricted cash acquired) $ 653,709 Consumer receivables 1,245,508 Intangible customer assets 1,378,000 Intangible technology assets 239,000 Intangible trade name 386,000 Other non-current assets 74,232 Long-term debt - current (i) (1,058,065) Current liabilities (439,358) Warehouse funding facilities (ii) (107,996) Deferred tax liabilities (190,689) Other non-current liabilities (63,213) Total identifiable net assets acquired 2,117,128 Goodwill 11,719,494 Total $ 13,836,622 (i) Long-term debt - current is comprised of the aforementioned Afterpay convertible notes, which were redeemed in cash at face value on March 4, 2022. (ii) Refer to Note 13, Indebtedness for further details. |
ACQUIRED INTANGIBLE ASSETS (Tab
ACQUIRED INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite Lived Intangible Assets | The following tables present the detail of acquired intangible assets as of the periods presented (in thousands): Balance at September 30, 2023 Weighted Average Estimated Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology assets 5 years $ 381,842 $ (181,353) $ 200,489 Customer assets 14 years 1,440,476 (201,714) 1,238,762 Trade names 9 years 422,953 (90,183) 332,770 Other 9 years 13,299 (6,369) 6,930 Total $ 2,258,570 $ (479,619) $ 1,778,951 Balance at December 31, 2022 Weighted Average Estimated Useful Life Gross Carrying Amount Accumulated Amortization Net Carrying Amount Technology assets 5 years $ 398,665 $ (133,116) $ 265,549 Customer assets 15 years 1,474,163 (110,316) 1,363,847 Trade names 9 years 434,766 (58,352) 376,414 Other 9 years 13,701 (5,477) 8,224 Total $ 2,321,295 $ (307,261) $ 2,014,034 The changes to the carrying value of intangible assets were as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Acquired intangible assets, net, beginning of the period $ 1,878,238 $ 2,148,078 $ 2,014,034 $ 257,049 Acquisitions — — — 2,028,490 Amortization expense (74,845) (55,867) (185,697) (155,288) Foreign currency translation and other adjustments (24,442) (61,335) (49,386) (99,375) Acquired intangible assets, net, end of the period $ 1,778,951 $ 2,030,876 $ 1,778,951 $ 2,030,876 |
Future Amortization Expense of Intangible Assets | The estimated future amortization expense of intangible assets in future periods as of September 30, 2023 was as follows (in thousands): Remainder of 2023 $ 60,708 2024 222,249 2025 203,020 2026 188,953 2027 142,779 Thereafter 961,242 Total $ 1,778,951 |
OTHER CONSOLIDATED BALANCE SH_3
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Current Assets | The following table presents the detail of other current assets (in thousands): September 30, 2023 December 31, 2022 Inventory, net $ 96,398 $ 97,703 Restricted cash (i) 572,754 639,780 Processing costs receivable 386,099 298,568 Prepaid expenses 111,752 141,262 Accounts receivable, net 127,367 140,508 Loans held for investment, net of allowance for loan losses (ii) 227,466 123,959 Other 174,197 185,485 Total $ 1,696,033 $ 1,627,265 (i) Includes a portion invested in money market funds. Refer to Note 5, Fair Value Measurements for further details . (ii) Refer to Note 7, Loans Held for Investment and Sale for further details . |
Accrued Expenses and Other Current Liabilities | The following table presents the detail of accrued expenses and other current liabilities (in thousands): September 30, 2023 December 31, 2022 Accrued expenses $ 429,022 $ 382,571 Accounts payable 139,777 95,846 Customer deposits 199,136 141,893 Accrued transaction losses (i) 71,627 64,539 Accrued royalties 73,315 63,684 Operating lease liabilities, current 52,851 66,854 Other 309,699 258,129 Total $ 1,275,427 $ 1,073,516 (i) The Company is exposed to potential credit losses related to transactions processed by sellers that are subsequently subject to chargebacks when the Company is unable to collect from the sellers primarily due to insolvency. Generally, the Company estimates the potential loss rates based on historical experience that is continuously adjusted for new information and incorporates, where applicable, reasonable and supportable forecasts about future expectations. |
Reserve for Transaction Losses | The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Accrued transaction losses, beginning of the period $ 62,758 $ 61,835 $ 64,539 $ 55,167 Provision for transaction losses 29,798 19,724 79,000 68,743 Charge-offs to accrued transaction losses (20,929) (20,547) (71,912) (62,898) Accrued transaction losses, end of the period $ 71,627 $ 61,012 $ 71,627 $ 61,012 |
OTHER CONSOLIDATED BALANCE SH_4
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT) (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Non-Current Assets | The following table presents the detail of other non-current assets (in thousands): September 30, 2023 December 31, 2022 Property and equipment, net $ 316,866 $ 329,302 Investment in non-marketable equity securities (i) 205,144 208,880 Investment in bitcoin, net (ii) 102,479 102,303 Restricted cash 71,946 71,600 Other 95,094 101,454 Total $ 791,529 $ 813,539 (i) Investment in non-marketable equity securities represents the Company's investments in equity of non-public entities. These investments are measured using the measurement alternative and are therefore carried at cost, less impairment, adjusted for observable price changes from orderly transactions for identical or similar investments of the same issuer. Adjustments are recorded within other expense (income), net on the condensed consolidated statements of operations. Unrealized gains and losses were immaterial during the three and nine months ended September 30, 2023. (ii) As of September 30, 2023, the Company has purchased a cumulative $220.0 million in bitcoin for investment purposes. Investment in bitcoin is accounted for as an indefinite-lived intangible asset, and does not include any bitcoin held for other parties, which is further described in Note 12, Bitcoin Held for Other Parties . Investment in bitcoin is subject to impairment losses if the fair value of bitcoin decreases below the carrying value during the assessed period. Impairment losses cannot be recovered for any subsequent increase in fair value until the sale of the asset. The Company recorded no impairment losses in the three and nine months ended September 30, 2023. As of September 30, 2023, the cumulative impairment charges to date were $117.7 million and the fair value of the investment in bitcoin was $216.5 million based on observable market prices, which was $114.0 million in excess of the Company's carrying value of $102.5 million after impairment charges. |
BITCOIN HELD FOR OTHER PARTIES
BITCOIN HELD FOR OTHER PARTIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Bitcoin Held on Behalf of Others | The following table summarizes the Company’s bitcoin held for other parties (in thousands, except number of bitcoin): September 30, 2023 December 31, 2022 Approximate number of bitcoin held for customers 25,083 25,850 Approximate number of bitcoin held for trading partners — 62 Total approximate number of bitcoin held for other parties 25,083 25,912 Safeguarding obligation liability related to bitcoin held for customers $ 676,363 $ 427,221 Safeguarding obligation liability related to bitcoin held for trading partners — 1,022 Safeguarding obligation liability related to bitcoin held for other parties $ 676,363 $ 428,243 Safeguarding asset related to bitcoin held for other parties $ 676,363 $ 428,243 |
INDEBTEDNESS (Tables)
INDEBTEDNESS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Net Carrying Amount of Convertible Notes | The net carrying amount of the Notes as of September 30, 2023 were as follows (in thousands): Principal Outstanding Unamortized Debt Issuance Costs Net Carrying Value 2031 Senior Notes $ 1,000,000 $ (10,785) $ 989,215 2026 Senior Notes 1,000,000 (7,497) 992,503 2027 Convertible Notes 575,000 (5,470) 569,530 2026 Convertible Notes 575,000 (4,415) 570,585 2025 Convertible Notes 1,000,000 (4,331) 995,669 Total $ 4,150,000 $ (32,498) $ 4,117,502 The net carrying amount of the Notes as of December 31, 2022 were as follows (in thousands): Principal Outstanding Unamortized Debt Issuance Costs Net Carrying Value 2031 Senior Notes $ 1,000,000 $ (11,829) $ 988,171 2026 Senior Notes 1,000,000 (9,586) 990,414 2027 Convertible Notes 575,000 (6,465) 568,535 2026 Convertible Notes 575,000 (5,685) 569,315 2025 Convertible Notes 1,000,000 (6,606) 993,394 2023 Convertible Notes (i) 460,630 (274) 460,356 Total $ 4,610,630 $ (40,445) $ 4,570,185 (i) Net carrying value disclosed as current portion of long-term debt within total current liabilities on the condensed consolidated balance sheet. |
Interest Expense on Convertible Notes | The Company recognized interest expense on the Notes as follows (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Contractual interest expense $ 16,291 $ 16,846 $ 49,223 $ 50,012 Amortization of debt issuance costs 2,587 2,766 7,947 8,208 Total $ 18,878 $ 19,612 $ 57,170 $ 58,220 |
Amounts Drawn on Facilities by Year of Maturity | The table below summarizes the amounts drawn on these facilities by year of maturity (in thousands): September 30, 2023 2024 $ 326,437 2025 28,906 2026 555,000 Total $ 910,343 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity for the nine months ended September 30, 2023 is as follows (in thousands, except per share data): Number of Stock Options Weighted Weighted Aggregate Outstanding, beginning of the year 6,739 $ 40.37 4.02 $ 224,484 Granted 682 65.16 Exercised (1,375) 12.06 Forfeited (108) 107.06 Expired (25) 80.33 Outstanding, end of the period 5,913 $ 48.43 3.53 $ 90,816 Exercisable, end of the period 4,801 $ 38.97 2.69 $ 90,816 |
Restricted Stock Awards and Restricted Stock Units Activity | Activity related to RSAs and RSUs during the nine months ended September 30, 2023 is set forth below (in thousands, except per share data): Number of Weighted Unvested, beginning of the year 28,300 $ 97.89 Granted 25,918 64.43 Vested (10,325) 88.57 Forfeited (2,787) 95.60 Unvested, end of the period 41,106 $ 79.29 |
Summary of the Effect of Share-Based Compensation on the Condensed Consolidated Statements of Operations | The following table summarizes the effects of share-based compensation on the Company's condensed consolidated statements of operations (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Cost of revenue $ 143 $ 104 $ 427 $ 352 Product development 245,244 184,569 666,512 508,781 Sales and marketing 35,703 28,744 97,858 75,133 General and administrative 64,600 49,316 179,732 210,528 Total $ 345,690 $ 262,733 $ 944,529 $ 794,794 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Income (Loss) Per Share | The following table presents the calculation of basic and diluted net loss per share (in thousands, except per share data): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Numerator: Net loss $ (33,760) $ (18,744) $ (178,928) $ (435,384) Less: Net loss attributable to noncontrolling interests (4,806) (4,033) (10,630) (8,460) Net loss attributable to common stockholders $ (28,954) $ (14,711) $ (168,298) $ (426,924) Denominator: Basic shares: Weighted-average shares used to compute basic net loss per share 611,276 592,672 606,767 572,234 Diluted shares: Weighted-average shares used to compute diluted net loss per share 611,276 592,672 606,767 572,234 Net loss per share attributable to common stockholders: Basic $ (0.05) $ (0.02) $ (0.28) $ (0.75) Diluted $ (0.05) $ (0.02) $ (0.28) $ (0.75) |
Antidilutive Securities Excluded from Calculation of Diluted Net Income (Loss) Per Share | The following potential common shares were excluded from the calculation of diluted net loss per share because their effect would have been anti-dilutive for the periods presented (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Stock options, restricted stock, and employee stock purchase plan 50,272 35,272 44,909 30,338 Convertible notes 12,109 18,025 15,034 18,030 Common stock warrants 23,188 27,929 23,188 37,241 Total anti-dilutive securities 85,569 81,226 83,131 85,609 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Recorded Unconditional Purchase Obligations | As of September 30, 2023, the future minimum payments under the purchase commitments were as follows (in thousands): Payments Due By Period Remainder of 2023 $ 44,606 2024 300,554 2025 316,425 2026 263,300 2027 315,100 Total $ 1,239,985 |
SEGMENT AND GEOGRAPHICAL INFO_2
SEGMENT AND GEOGRAPHICAL INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting Information, by Segment | The following tables present information on the reportable segments revenue and segment gross profit (in thousands): Three Months Ended Nine Months Ended Cash App Square Corporate and Other (i) Total Cash App Square Corporate and Other (i) Total Revenue: Transaction-based revenue $ 120,783 $ 1,537,885 $ — $ 1,658,668 $ 389,186 $ 4,329,841 $ — $ 4,719,027 Subscription and services-based revenue 1,040,591 402,126 50,183 1,492,900 3,045,302 1,124,465 150,854 4,320,621 Hardware revenue — 42,341 — 42,341 — 124,714 — 124,714 Bitcoin revenue 2,423,584 — — 2,423,584 6,978,219 — — 6,978,219 Segment revenue $ 3,584,958 $ 1,982,352 $ 50,183 $ 5,617,493 $ 10,412,707 $ 5,579,020 $ 150,854 $ 16,142,581 Segment gross profit (ii) $ 983,858 $ 898,969 $ 15,622 $ 1,898,449 $ 2,883,141 $ 2,557,525 $ 38,468 $ 5,479,134 Three Months Ended Nine Months Ended Cash App Square Corporate and Other (i) Total Cash App Square Corporate and Other (i) Total Revenue: Transaction-based revenue $ 118,459 $ 1,399,431 $ — $ 1,517,890 $ 343,768 $ 3,882,798 $ — $ 4,226,566 Subscription and services-based revenue 803,673 331,703 56,135 1,191,511 2,146,163 932,188 167,573 3,245,924 Hardware revenue — 43,388 — 43,388 — 128,765 — 128,765 Bitcoin revenue 1,762,752 — — 1,762,752 5,279,430 — — 5,279,430 Segment revenue $ 2,684,884 $ 1,774,522 $ 56,135 $ 4,515,541 $ 7,769,361 $ 4,943,751 $ 167,573 $ 12,880,685 Segment gross profit (ii) $ 774,470 $ 782,968 $ 9,651 $ 1,567,089 $ 2,103,023 $ 2,199,628 $ 29,046 $ 4,331,697 (i) Corporate and other represents results related to products and services that are not assigned to a specific reportable segment, and intersegment eliminations between Cash App and Square. (ii) Segment gross profit for Cash App for the three and nine months ended September 30, 2023 included $8.0 million and $24.9 million of amortization of acquired technology assets expense, respectively. Segment gross profit for Cash App for the three and nine months ended September 30, 2022 included $8.5 million and $23.8 million of amortization of acquired technology assets expense, respectively. Segment gross profit for Square for the three and nine months ended September 30, 2023 included $8.5 million and $25.5 million of amortization of acquired technology assets expense, respectively. Segment gross profit for Square for the three and nine months ended September 30, 2022 included $8.6 million and $23.8 million of amortization of acquired technology assets expense, respectively. Amortization of acquired technology assets expense included in Corporate and Other was immaterial for the three and nine months ended September 30, 2023 and September 30, 2022. |
Reconciliation of Total Segment Profit to Income before applicable Income Taxes | The following table provides a reconciliation of total segment gross profit to the Company’s loss before applicable income taxes (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Total segment gross profit $ 1,898,449 $ 1,567,089 $ 5,479,134 $ 4,331,697 Less: Product development 713,788 548,037 2,035,397 1,531,088 Less: Sales and marketing 479,381 485,838 1,512,999 1,518,227 Less: General and administrative 480,885 395,437 1,463,003 1,235,306 Less: Transaction, loan, and consumer receivable losses 177,338 147,586 485,005 395,433 Less: Bitcoin impairment losses — 1,619 — 37,580 Less: Amortization of customer and other intangible assets 56,965 37,361 130,917 103,414 Less: Interest expense (income), net (21,415) 6,042 (28,520) 34,756 Less: Other expense (income), net (4,262) (18,798) 15,488 (71,036) Income (loss) before applicable income taxes $ 15,769 $ (36,033) $ (135,155) $ (453,071) |
Revenue by Geographic Area | Revenue by geography is based on the addresses of the sellers or customers. The following table details revenue by geographic area (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 United States $ 5,227,987 $ 4,195,291 $ 15,064,180 $ 12,007,976 International 389,506 320,250 1,078,401 872,709 Total $ 5,617,493 $ 4,515,541 $ 16,142,581 $ 12,880,685 |
Long-lived Assets by Geographic Area | The following table details long-lived assets by geography (in thousands): September 30, 2023 December 31, 2022 United States $ 7,787,309 $ 8,023,535 Australia 4,498,367 4,801,434 Other international 1,838,864 1,858,300 Total $ 14,124,540 $ 14,683,269 |
SUPPLEMENTAL CASH FLOW INFORM_2
SUPPLEMENTAL CASH FLOW INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Supplemental Cash Flow Elements [Abstract] | |
Cash Flow, Supplemental Disclosures | The supplemental disclosures of cash flow information consist of the following (in thousands): Nine Months Ended 2023 2022 Supplemental cash flow data: Cash paid for interest $ 80,120 $ 42,836 Cash paid for income taxes 61,325 18,629 Supplemental disclosures of non-cash investing and financing activities: Right-of-use assets obtained in exchange for operating lease obligations 4,381 37,939 Purchases of property and equipment in accounts payable and accrued expenses 2,766 11,835 Deferred purchase consideration related to business combinations — 14,377 Fair value of common stock issued related to business combinations — (13,827,929) Fair value of common stock issued to settle the conversion of convertible notes — (2,551) Fair value of common stock shares received to settle convertible note hedges — 133,144 Fair value of common stock issued in connection with the exercise of common stock warrants — (806,446) Bitcoin lent to third-party borrowers — 5,934 |
DESCRIPTION OF BUSINESS AND S_3
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 USD ($) customer | Sep. 30, 2022 USD ($) customer | Sep. 30, 2023 USD ($) customer third_party_processor segment | Sep. 30, 2022 USD ($) customer | Dec. 31, 2022 third_party_processor | |
Concentration Risk [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Advertising costs | $ 78.1 | $ 91.6 | $ 283.3 | $ 405.6 | |
Selling and marketing expenses not directly related to a revenue generating transaction | $ 214.2 | $ 212.3 | $ 693.3 | $ 620.3 | |
Minimum | |||||
Concentration Risk [Line Items] | |||||
Settlements receivable period | 1 day | ||||
Maximum | |||||
Concentration Risk [Line Items] | |||||
Settlements receivable period | 2 days | ||||
Revenue Benchmark | Customer Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Number of customers accounting for greater than 10% of total net revenue | customer | 0 | 0 | 0 | 0 | |
Settlements Receivable | Credit Concentration Risk | |||||
Concentration Risk [Line Items] | |||||
Number of third party processors | third_party_processor | 3 | 2 | |||
Settlements Receivable | Credit Concentration Risk | Third Party Processor One | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 47% | 54% | |||
Settlements Receivable | Credit Concentration Risk | Third Party Processor Two | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 31% | 31% | |||
Settlements Receivable | Credit Concentration Risk | Third Party Processor Three | |||||
Concentration Risk [Line Items] | |||||
Concentration risk | 9% |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 5,617,493 | $ 4,515,541 | $ 16,142,581 | $ 12,880,685 |
Transaction-based revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,658,668 | 1,517,890 | 4,719,027 | 4,226,566 |
Revenue | 1,658,668 | 1,517,890 | 4,719,027 | 4,226,566 |
Subscription and services-based revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 1,077,457 | 902,708 | 3,187,465 | 2,427,193 |
Revenues from other sources | 415,443 | 288,803 | 1,133,156 | 818,731 |
Revenue | 1,492,900 | 1,191,511 | 4,320,621 | 3,245,924 |
Hardware revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 42,341 | 43,388 | 124,714 | 128,765 |
Revenue | 42,341 | 43,388 | 124,714 | 128,765 |
Bitcoin revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue from contracts with customers | 2,423,584 | 1,762,752 | 6,978,219 | 5,279,430 |
Revenue | $ 2,423,584 | $ 1,762,752 | $ 6,978,219 | $ 5,279,430 |
INVESTMENTS IN DEBT SECURITIE_2
INVESTMENTS IN DEBT SECURITIES - Short-Term and Long-Term Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,604,308 | |
Fair Value | 1,587,346 | |
Short-term debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,174,196 | $ 1,100,805 |
Gross Unrealized Gains | 15 | 24 |
Gross Unrealized Losses | (13,067) | (18,978) |
Fair Value | 1,161,144 | 1,081,851 |
Long-term debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 430,112 | 600,305 |
Gross Unrealized Gains | 39 | 9 |
Gross Unrealized Losses | (3,949) | (26,885) |
Fair Value | 426,202 | 573,429 |
U.S. agency securities | Short-term debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 92,819 | 96,545 |
Gross Unrealized Gains | 1 | 16 |
Gross Unrealized Losses | (2,079) | (2,120) |
Fair Value | 90,741 | 94,441 |
U.S. agency securities | Long-term debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 16,120 | 74,097 |
Gross Unrealized Gains | 2 | 0 |
Gross Unrealized Losses | (252) | (3,782) |
Fair Value | 15,870 | 70,315 |
Corporate bonds | Short-term debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 272,928 | 368,110 |
Gross Unrealized Gains | 5 | 2 |
Gross Unrealized Losses | (3,792) | (7,475) |
Fair Value | 269,141 | 360,637 |
Corporate bonds | Long-term debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 169,426 | 245,891 |
Gross Unrealized Gains | 25 | 6 |
Gross Unrealized Losses | (759) | (9,171) |
Fair Value | 168,692 | 236,726 |
Commercial paper | Short-term debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 29,532 | 31,503 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 29,532 | 31,503 |
Municipal securities | Short-term debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,401 | 9,884 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (381) | (191) |
Fair Value | 9,020 | 9,693 |
Municipal securities | Long-term debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,495 | 10,415 |
Gross Unrealized Gains | 0 | 3 |
Gross Unrealized Losses | (259) | (664) |
Fair Value | 1,236 | 9,754 |
Certificates of deposit | Short-term debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 173,155 | 6,400 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 173,155 | 6,400 |
U.S. government securities | Short-term debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 592,466 | 580,568 |
Gross Unrealized Gains | 9 | 6 |
Gross Unrealized Losses | (6,763) | (8,937) |
Fair Value | 585,712 | 571,637 |
U.S. government securities | Long-term debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 243,071 | 268,902 |
Gross Unrealized Gains | 12 | 0 |
Gross Unrealized Losses | (2,679) | (13,210) |
Fair Value | 240,404 | 255,692 |
Foreign government securities | Short-term debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,895 | 7,795 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (52) | (255) |
Fair Value | 3,843 | 7,540 |
Foreign government securities | Long-term debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 0 | 1,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | (58) |
Fair Value | $ 0 | $ 942 |
INVESTMENTS IN DEBT SECURITIE_3
INVESTMENTS IN DEBT SECURITIES - Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Short-term debt securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | $ 265,127 | $ 190,928 |
Less than 12 Months, Gross Unrealized Losses | (511) | (1,299) |
Greater than 12 months, Fair Value | 540,661 | 813,607 |
Greater than 12 months, Gross Unrealized Losses | (12,556) | (17,679) |
Total, Fair Value | 805,788 | 1,004,535 |
Total, Gross Unrealized Losses | (13,067) | (18,978) |
Short-term debt securities | U.S. agency securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 22,107 | 8,572 |
Less than 12 Months, Gross Unrealized Losses | (42) | (24) |
Greater than 12 months, Fair Value | 63,635 | 84,628 |
Greater than 12 months, Gross Unrealized Losses | (2,037) | (2,096) |
Total, Fair Value | 85,742 | 93,200 |
Total, Gross Unrealized Losses | (2,079) | (2,120) |
Short-term debt securities | Corporate bonds | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 78,144 | 34,795 |
Less than 12 Months, Gross Unrealized Losses | (176) | (423) |
Greater than 12 months, Fair Value | 179,035 | 320,748 |
Greater than 12 months, Gross Unrealized Losses | (3,616) | (7,052) |
Total, Fair Value | 257,179 | 355,543 |
Total, Gross Unrealized Losses | (3,792) | (7,475) |
Short-term debt securities | Municipal securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 0 | 587 |
Less than 12 Months, Gross Unrealized Losses | 0 | (13) |
Greater than 12 months, Fair Value | 9,020 | 5,811 |
Greater than 12 months, Gross Unrealized Losses | (381) | (178) |
Total, Fair Value | 9,020 | 6,398 |
Total, Gross Unrealized Losses | (381) | (191) |
Short-term debt securities | U.S. government securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 164,876 | 146,974 |
Less than 12 Months, Gross Unrealized Losses | (293) | (839) |
Greater than 12 months, Fair Value | 285,128 | 394,880 |
Greater than 12 months, Gross Unrealized Losses | (6,470) | (8,098) |
Total, Fair Value | 450,004 | 541,854 |
Total, Gross Unrealized Losses | (6,763) | (8,937) |
Short-term debt securities | Foreign government securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 0 | 0 |
Less than 12 Months, Gross Unrealized Losses | 0 | 0 |
Greater than 12 months, Fair Value | 3,843 | 7,540 |
Greater than 12 months, Gross Unrealized Losses | (52) | (255) |
Total, Fair Value | 3,843 | 7,540 |
Total, Gross Unrealized Losses | (52) | (255) |
Long-term debt securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 310,027 | 100,235 |
Less than 12 Months, Gross Unrealized Losses | (1,518) | (905) |
Greater than 12 months, Fair Value | 50,320 | 471,619 |
Greater than 12 months, Gross Unrealized Losses | (2,431) | (25,980) |
Total, Fair Value | 360,347 | 571,854 |
Total, Gross Unrealized Losses | (3,949) | (26,885) |
Long-term debt securities | U.S. agency securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 8,956 | 11,501 |
Less than 12 Months, Gross Unrealized Losses | (44) | (20) |
Greater than 12 months, Fair Value | 3,792 | 58,814 |
Greater than 12 months, Gross Unrealized Losses | (208) | (3,762) |
Total, Fair Value | 12,748 | 70,315 |
Total, Gross Unrealized Losses | (252) | (3,782) |
Long-term debt securities | Corporate bonds | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 134,742 | 33,862 |
Less than 12 Months, Gross Unrealized Losses | (547) | (262) |
Greater than 12 months, Fair Value | 10,148 | 201,791 |
Greater than 12 months, Gross Unrealized Losses | (212) | (8,909) |
Total, Fair Value | 144,890 | 235,653 |
Total, Gross Unrealized Losses | (759) | (9,171) |
Long-term debt securities | Municipal securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 889 | 467 |
Less than 12 Months, Gross Unrealized Losses | (111) | (33) |
Greater than 12 months, Fair Value | 347 | 8,784 |
Greater than 12 months, Gross Unrealized Losses | (148) | (631) |
Total, Fair Value | 1,236 | 9,251 |
Total, Gross Unrealized Losses | (259) | (664) |
Long-term debt securities | U.S. government securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 165,440 | 54,405 |
Less than 12 Months, Gross Unrealized Losses | (816) | (590) |
Greater than 12 months, Fair Value | 36,033 | 201,288 |
Greater than 12 months, Gross Unrealized Losses | (1,863) | (12,620) |
Total, Fair Value | 201,473 | 255,693 |
Total, Gross Unrealized Losses | (2,679) | (13,210) |
Long-term debt securities | Foreign government securities | ||
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items] | ||
Less than 12 Months, Fair Value | 0 | 0 |
Less than 12 Months, Gross Unrealized Losses | 0 | 0 |
Greater than 12 months, Fair Value | 0 | 942 |
Greater than 12 months, Gross Unrealized Losses | 0 | (58) |
Total, Fair Value | 0 | 942 |
Total, Gross Unrealized Losses | $ 0 | $ (58) |
INVESTMENTS IN DEBT SECURITIE_4
INVESTMENTS IN DEBT SECURITIES - Contractual Maturities of Short-Term and Long-Term Investments (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Amortized Cost | |
Due in one year or less | $ 1,174,196 |
Due in one to five years | 430,112 |
Amortized Cost | 1,604,308 |
Fair Value | |
Due in one year or less | 1,161,144 |
Due in one to five years | 426,202 |
Fair Value | $ 1,587,346 |
CUSTOMER FUNDS - Assets Underly
CUSTOMER FUNDS - Assets Underlying Customer Funds (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Customer funds | $ 2,913,737 | $ 3,180,324 |
Cash | ||
Debt Securities, Available-for-sale [Line Items] | ||
Customer funds | 1,603,994 | 1,748,983 |
Cash Equivalents | Money market funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Customer funds | 566,451 | 851,296 |
Cash Equivalents | Reverse repurchase agreement | ||
Debt Securities, Available-for-sale [Line Items] | ||
Customer funds | $ 743,292 | $ 580,045 |
FAIR VALUE MEASUREMENTS - Finan
FAIR VALUE MEASUREMENTS - Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Customer funds | $ 2,913,737 | $ 3,180,324 |
Safeguarding asset related to bitcoin held for other parties | 676,363 | 428,243 |
Safeguarding obligation liability related to bitcoin held for other parties | (676,363) | (428,243) |
Fair Value, Measurements, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable equity securities | 8,267 | 11,092 |
Safeguarding asset related to bitcoin held for other parties | 0 | 0 |
Safeguarding obligation liability related to bitcoin held for other parties | 0 | 0 |
Total assets (liabilities) measured | 3,224,579 | 3,500,686 |
Fair Value, Measurements, Recurring | Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 861,104 | 1,230,924 |
Restricted cash | 195,075 | 0 |
Customer funds | 566,451 | 851,296 |
Fair Value, Measurements, Recurring | Level 1 | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 24,274 | 0 |
Short-term debt securities | 585,712 | 571,637 |
Long-term debt securities | 240,404 | 255,692 |
Fair Value, Measurements, Recurring | Level 1 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term debt securities | 0 | 0 |
Long-term debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term debt securities | 0 | 0 |
Long-term debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Reverse repurchase agreement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Customer funds | 743,292 | 580,045 |
Fair Value, Measurements, Recurring | Level 1 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt securities | 0 | 0 |
Long-term debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 1 | Foreign government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt securities | 0 | 0 |
Long-term debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable equity securities | 0 | 0 |
Safeguarding asset related to bitcoin held for other parties | 676,363 | 428,243 |
Safeguarding obligation liability related to bitcoin held for other parties | (676,363) | (428,243) |
Total assets (liabilities) measured | 784,880 | 860,954 |
Fair Value, Measurements, Recurring | Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Customer funds | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term debt securities | 0 | 0 |
Long-term debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 7,923 |
Short-term debt securities | 90,741 | 94,441 |
Long-term debt securities | 15,870 | 70,315 |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 23,441 | 25,080 |
Fair Value, Measurements, Recurring | Level 2 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 209 | 0 |
Short-term debt securities | 269,141 | 360,637 |
Long-term debt securities | 168,692 | 236,726 |
Fair Value, Measurements, Recurring | Level 2 | Reverse repurchase agreement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Customer funds | 0 | 0 |
Fair Value, Measurements, Recurring | Level 2 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt securities | 173,155 | 6,400 |
Fair Value, Measurements, Recurring | Level 2 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt securities | 29,532 | 31,503 |
Fair Value, Measurements, Recurring | Level 2 | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt securities | 9,020 | 9,693 |
Long-term debt securities | 1,236 | 9,754 |
Fair Value, Measurements, Recurring | Level 2 | Foreign government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt securities | 3,843 | 7,540 |
Long-term debt securities | 0 | 942 |
Fair Value, Measurements, Recurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment in marketable equity securities | 0 | 0 |
Safeguarding asset related to bitcoin held for other parties | 0 | 0 |
Safeguarding obligation liability related to bitcoin held for other parties | 0 | 0 |
Total assets (liabilities) measured | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Customer funds | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term debt securities | 0 | 0 |
Long-term debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | U.S. agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term debt securities | 0 | 0 |
Long-term debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Short-term debt securities | 0 | 0 |
Long-term debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Reverse repurchase agreement | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Customer funds | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Certificates of deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Municipal securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt securities | 0 | 0 |
Long-term debt securities | 0 | 0 |
Fair Value, Measurements, Recurring | Level 3 | Foreign government securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Short-term debt securities | 0 | 0 |
Long-term debt securities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Fair
FAIR VALUE MEASUREMENTS - Fair Value and Carrying Value of Convertible Senior Notes (Details) - Level 2 - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument | $ 4,117,502 | $ 4,570,185 |
Fair Value (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument | 3,501,457 | 3,989,994 |
2031 Senior Notes | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument | 989,215 | 988,171 |
2031 Senior Notes | Fair Value (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument | 778,065 | 782,857 |
2026 Senior Notes | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument | 992,503 | 990,414 |
2026 Senior Notes | Fair Value (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Debt instrument | 892,874 | 885,876 |
2027 Convertible Notes | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible notes | 569,530 | 568,535 |
2027 Convertible Notes | Fair Value (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible notes | 428,035 | 433,082 |
2026 Convertible Notes | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible notes | 570,585 | 569,315 |
2026 Convertible Notes | Fair Value (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible notes | 477,009 | 464,066 |
2025 Convertible Notes | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible notes | 995,669 | 993,394 |
2025 Convertible Notes | Fair Value (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible notes | 925,474 | 943,188 |
2023 Convertible Notes | Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible notes | 0 | 460,356 |
2023 Convertible Notes | Fair Value (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Convertible notes | $ 0 | $ 480,925 |
FAIR VALUE MEASUREMENTS - Fai_2
FAIR VALUE MEASUREMENTS - Fair Value and Carrying Value of Loans Held for Sale (Details) - Level 3 - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | $ 597,035 | $ 474,036 |
Loans held for investment | 227,466 | 123,959 |
Total | 824,501 | 597,995 |
Fair Value (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 602,105 | 491,807 |
Loans held for investment | 236,891 | 126,122 |
Total | $ 838,996 | $ 617,929 |
CONSUMER RECEIVABLES, NET - Nar
CONSUMER RECEIVABLES, NET - Narrative (Details) - Consumer - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Threshold period past due | 60 days | |
Consumer receivables | $ 1,845,263 | $ 2,022,450 |
Cash in transit | $ 216,600 | $ 224,900 |
Percentage of cash in transit to total amortized cost of consumer receivables | 11.70% | 11.10% |
Threshold period past due to consider amounts to be uncollectible | 180 days | |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Consumer receivables | $ 1,800,000 | |
Classified | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Consumer receivables | $ 100,000 | |
Minimum | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Payment period | 14 days | |
Maximum | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Payment period | 56 days |
CONSUMER RECEIVABLES, NET - Agi
CONSUMER RECEIVABLES, NET - Aging Analysis (Details) - Consumer - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Consumer receivables | $ 1,845,263 | $ 2,022,450 |
Non-delinquent loans | ||
Financing Receivable, Past Due [Line Items] | ||
Consumer receivables | 1,467,168 | 1,643,874 |
1 - 60 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Consumer receivables | 287,711 | 295,830 |
61 - 90 days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Consumer receivables | 25,020 | 20,612 |
90+ days past due | ||
Financing Receivable, Past Due [Line Items] | ||
Consumer receivables | $ 65,364 | $ 62,134 |
CONSUMER RECEIVABLES, NET - Act
CONSUMER RECEIVABLES, NET - Activity in Allowance for Credit Losses (Details) - Consumer - USD ($) $ in Thousands | 3 Months Ended | 8 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2023 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Allowance for credit losses, beginning of the period | $ 153,772 | $ 121,579 | $ 115,552 | $ 151,290 |
Provision for credit losses | 60,365 | 53,021 | 146,014 | 172,549 |
Charge-offs and other adjustments | (63,143) | (28,516) | (116,624) | (172,982) |
Foreign exchange effect | (680) | (4,113) | (2,971) | (543) |
Allowance for credit losses, end of the period | $ 150,314 | $ 141,971 | $ 141,971 | $ 150,314 |
LOANS HELD FOR INVESTMENT AND_3
LOANS HELD FOR INVESTMENT AND SALE - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Loans held for sale | $ 597,035 | $ 474,036 |
Loan Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Loans held for investment, net of allowance for loan losses | $ 227,466 | $ 123,959 |
Threshold period past due | 60 days | |
Nonperforming Financial Instruments | Loan Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Threshold period past due | 90 days | |
Unlikely to be Collected Financing Receivable | Loan Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Threshold period past due | 120 days | |
Pass | Loan Portfolio Segment | ||
Financing Receivable, Past Due [Line Items] | ||
Consumer receivables | $ 240,400 |
LOANS HELD FOR INVESTMENT AND_4
LOANS HELD FOR INVESTMENT AND SALE - Loans Held for Sale by Category (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $ 597,035 | $ 474,036 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | 372,922 | 327,449 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | 199,497 | 120,870 |
Other | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans held for sale | $ 24,616 | $ 25,717 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - Afterpay Limited $ in Thousands, $ in Billions | 9 Months Ended | |||
Feb. 01, 2022 USD ($) | Jan. 31, 2022 USD ($) shares | Sep. 30, 2022 USD ($) | Jan. 31, 2022 AUD ($) | |
Business Acquisition [Line Items] | ||||
Equity consideration (in shares) | shares | 113,617,352 | |||
Equity consideration | $ 13,800,000 | |||
Acquisition cost expensed | $ 66,337 | $ 66,300 | ||
Acquired debt from acquisition | $ 1,058,065 | $ 1.5 |
ACQUISITIONS - Assets Acquired
ACQUISITIONS - Assets Acquired and Liabilities Assumed (Details) $ in Thousands, $ in Billions | 9 Months Ended | |||||
Feb. 01, 2022 USD ($) | Jan. 31, 2022 USD ($) shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jan. 31, 2022 AUD ($) | |
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||||
Goodwill | $ 11,749,198 | $ 11,966,761 | ||||
Afterpay Limited | ||||||
Consideration: | ||||||
Stock (113,617,352 shares of Class A common stock, excluding value accounted as post-combination expense of $66,337) | $ 13,827,929 | |||||
Equity consideration (in shares) | shares | 113,617,352 | |||||
Acquisition cost expensed | $ 66,337 | $ 66,300 | ||||
Cash paid to settle tax withholding in connection with replacement awards | $ 8,693 | |||||
Total | 13,836,622 | |||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||||
Current assets (inclusive of cash, cash equivalents, and restricted cash acquired) | 653,709 | |||||
Consumer receivables | 1,245,508 | |||||
Other non-current assets | 74,232 | |||||
Long-term debt - current | (1,058,065) | $ (1.5) | ||||
Current liabilities | (439,358) | |||||
Warehouse funding facilities | (107,996) | |||||
Deferred tax liabilities | (190,689) | |||||
Other non-current liabilities | (63,213) | |||||
Total identifiable net assets acquired | 2,117,128 | |||||
Goodwill | 11,719,494 | |||||
Total | 13,836,622 | |||||
Afterpay Limited | Intangible customer assets | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||||
Intangible assets | 1,378,000 | |||||
Afterpay Limited | Intangible technology assets | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||||
Intangible assets | 239,000 | |||||
Afterpay Limited | Intangible trade name | ||||||
Recognized amounts of identifiable assets acquired and liabilities assumed: | ||||||
Intangible assets | $ 386,000 |
ACQUIRED INTANGIBLE ASSETS - Sc
ACQUIRED INTANGIBLE ASSETS - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Gross Carrying Amount | $ 2,258,570 | $ 2,321,295 | ||||
Accumulated Amortization | (479,619) | (307,261) | ||||
Net Carrying Amount | $ 1,778,951 | $ 2,014,034 | $ 1,878,238 | $ 2,030,876 | $ 2,148,078 | $ 257,049 |
Technology assets | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted Average Estimated Useful Life | 5 years | 5 years | ||||
Gross Carrying Amount | $ 381,842 | $ 398,665 | ||||
Accumulated Amortization | (181,353) | (133,116) | ||||
Net Carrying Amount | $ 200,489 | $ 265,549 | ||||
Customer assets | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted Average Estimated Useful Life | 14 years | 15 years | ||||
Gross Carrying Amount | $ 1,440,476 | $ 1,474,163 | ||||
Accumulated Amortization | (201,714) | (110,316) | ||||
Net Carrying Amount | $ 1,238,762 | $ 1,363,847 | ||||
Trade names | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted Average Estimated Useful Life | 9 years | 9 years | ||||
Gross Carrying Amount | $ 422,953 | $ 434,766 | ||||
Accumulated Amortization | (90,183) | (58,352) | ||||
Net Carrying Amount | $ 332,770 | $ 376,414 | ||||
Other | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Weighted Average Estimated Useful Life | 9 years | 9 years | ||||
Gross Carrying Amount | $ 13,299 | $ 13,701 | ||||
Accumulated Amortization | (6,369) | (5,477) | ||||
Net Carrying Amount | $ 6,930 | $ 8,224 |
ACQUIRED INTANGIBLE ASSETS - Ch
ACQUIRED INTANGIBLE ASSETS - Change in Carrying Value of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Finite-lived Intangible Assets [Roll Forward] | ||||
Acquired intangible assets, net, beginning of the period | $ 1,878,238 | $ 2,148,078 | $ 2,014,034 | $ 257,049 |
Acquisitions | 0 | 0 | 0 | 2,028,490 |
Amortization expense | (74,845) | (55,867) | (185,697) | (155,288) |
Foreign currency translation and other adjustments | (24,442) | (61,335) | (49,386) | (99,375) |
Acquired intangible assets, net, end of the period | $ 1,778,951 | $ 2,030,876 | $ 1,778,951 | $ 2,030,876 |
ACQUIRED INTANGIBLE ASSETS - Fu
ACQUIRED INTANGIBLE ASSETS - Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Remainder of 2023 | $ 60,708 | |||||
2024 | 222,249 | |||||
2025 | 203,020 | |||||
2026 | 188,953 | |||||
2027 | 142,779 | |||||
Thereafter | 961,242 | |||||
Net Carrying Amount | $ 1,778,951 | $ 1,878,238 | $ 2,014,034 | $ 2,030,876 | $ 2,148,078 | $ 257,049 |
OTHER CONSOLIDATED BALANCE SH_5
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) - Other Current Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Inventory, net | $ 96,398 | $ 97,703 | |
Restricted cash | 572,754 | 639,780 | $ 246,570 |
Processing costs receivable | 386,099 | 298,568 | |
Prepaid expenses | 111,752 | 141,262 | |
Accounts receivable, net | 127,367 | 140,508 | |
Other | 174,197 | 185,485 | |
Total | 1,696,033 | 1,627,265 | |
Loan Portfolio Segment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans held for investment, net of allowance for loan losses | $ 227,466 | $ 123,959 |
OTHER CONSOLIDATED BALANCE SH_6
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Accrued expenses | $ 429,022 | $ 429,022 | $ 382,571 | ||
Accounts payable | 139,777 | 139,777 | 95,846 | ||
Customer deposits | 199,136 | 199,136 | 141,893 | ||
Accrued transaction losses | 71,627 | 71,627 | 64,539 | ||
Accrued royalties | 73,315 | 73,315 | 63,684 | ||
Operating lease liabilities, current | $ 52,851 | $ 52,851 | 66,854 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total | Total | |||
Other | $ 309,699 | $ 309,699 | 258,129 | ||
Total | 1,275,427 | 1,275,427 | $ 1,073,516 | ||
Transaction Losses | |||||
Business Acquisition [Line Items] | |||||
Provisions for transaction losses realized and written-off within the same period | $ 111,100 | $ 100,900 | $ 337,300 | $ 312,600 |
OTHER CONSOLIDATED BALANCE SH_7
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (CURRENT) - Reserve for Transaction Losses (Details) - Transaction Losses - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Loss Contingency Accrual [Roll Forward] | ||||
Accrued transaction losses, beginning of the period | $ 62,758 | $ 61,835 | $ 64,539 | $ 55,167 |
Provision for transaction losses | 29,798 | 19,724 | 79,000 | 68,743 |
Charge-offs to accrued transaction losses | (20,929) | (20,547) | (71,912) | (62,898) |
Accrued transaction losses, end of the period | $ 71,627 | $ 61,012 | $ 71,627 | $ 61,012 |
OTHER CONSOLIDATED BALANCE SH_8
OTHER CONSOLIDATED BALANCE SHEET COMPONENTS (NON-CURRENT) (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Property and equipment, net | $ 316,866,000 | $ 316,866,000 | $ 316,866,000 | $ 329,302,000 | ||
Investment in non-marketable equity securities | 205,144,000 | 205,144,000 | 205,144,000 | 208,880,000 | ||
Investment in bitcoin, net | 102,479,000 | 102,479,000 | 102,479,000 | 102,303,000 | ||
Restricted cash | 71,946,000 | 71,946,000 | $ 72,479,000 | 71,946,000 | $ 72,479,000 | 71,600,000 |
Other | 95,094,000 | 95,094,000 | 95,094,000 | 101,454,000 | ||
Total | 791,529,000 | 791,529,000 | 791,529,000 | $ 813,539,000 | ||
Bitcoin impairment losses | 0 | $ 1,619,000 | 0 | $ 37,580,000 | ||
Bitcoin accumulated impairment losses | 117,700,000 | 117,700,000 | 117,700,000 | |||
Bitcoin | ||||||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible asset acquired | 220,000,000 | |||||
Fair value of bitcoin investment | 216,500,000 | 216,500,000 | 216,500,000 | |||
Amount of fair value in excess of carrying value for bitcoin investment | $ 114,000,000 | $ 114,000,000 | $ 114,000,000 |
BITCOIN HELD FOR OTHER PARTIE_2
BITCOIN HELD FOR OTHER PARTIES (Details) $ in Thousands | Sep. 30, 2023 USD ($) bitcoin | Dec. 31, 2022 USD ($) bitcoin |
Platform Operator, Crypto-Asset [Line Items] | ||
Approximate number of bitcoin held for customers | bitcoin | 25,083 | 25,850 |
Approximate number of bitcoin held for trading partners | bitcoin | 0 | 62 |
Total approximate number of bitcoin held for other parties | bitcoin | 25,083 | 25,912 |
Safeguarding obligation liability related to bitcoin held for other parties | $ 676,363 | $ 428,243 |
Safeguarding asset related to bitcoin held for other parties | 676,363 | 428,243 |
Crypto-Asset, Held For Customers | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Safeguarding obligation liability related to bitcoin held for other parties | 676,363 | 427,221 |
Crypto-Asset, Held For Partners | ||
Platform Operator, Crypto-Asset [Line Items] | ||
Safeguarding obligation liability related to bitcoin held for other parties | $ 0 | $ 1,022 |
INDEBTEDNESS - Net Carrying Amo
INDEBTEDNESS - Net Carrying Amount of Convertible Notes (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Convertible Debt | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | $ 4,150,000 | $ 4,610,630 |
Unamortized Debt Issuance Costs | (32,498) | (40,445) |
Net Carrying Value | 4,117,502 | 4,570,185 |
2031 Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 1,000,000 | 1,000,000 |
Unamortized Debt Issuance Costs | (10,785) | (11,829) |
Net Carrying Value | 989,215 | 988,171 |
2026 Senior Notes | Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 1,000,000 | 1,000,000 |
Unamortized Debt Issuance Costs | (7,497) | (9,586) |
Net Carrying Value | 992,503 | 990,414 |
2027 Convertible Notes | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 575,000 | 575,000 |
Unamortized Debt Issuance Costs | (5,470) | (6,465) |
Net Carrying Value | 569,530 | 568,535 |
2026 Convertible Notes | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 575,000 | 575,000 |
Unamortized Debt Issuance Costs | (4,415) | (5,685) |
Net Carrying Value | 570,585 | 569,315 |
2025 Convertible Notes | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 1,000,000 | 1,000,000 |
Unamortized Debt Issuance Costs | (4,331) | (6,606) |
Net Carrying Value | $ 995,669 | 993,394 |
2023 Convertible Notes | Convertible Debt | ||
Debt Instrument [Line Items] | ||
Principal Outstanding | 460,630 | |
Unamortized Debt Issuance Costs | (274) | |
Net Carrying Value | $ 460,356 |
INDEBTEDNESS - Interest Expense
INDEBTEDNESS - Interest Expense on Convertible Notes (Details) - Convertible Debt - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Instrument [Line Items] | ||||
Contractual interest expense | $ 16,291 | $ 16,846 | $ 49,223 | $ 50,012 |
Amortization of debt issuance costs | 2,587 | 2,766 | 7,947 | 8,208 |
Total | $ 18,878 | $ 19,612 | $ 57,170 | $ 58,220 |
INDEBTEDNESS - Convertible Note
INDEBTEDNESS - Convertible Notes Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 60 Months Ended | ||||||
May 15, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | May 15, 2023 | Dec. 31, 2022 | Nov. 13, 2020 | Mar. 05, 2020 | May 25, 2018 | |
Debt Instrument [Line Items] | |||||||||
Payment to settle debt | $ 461,761 | $ 1,071,788 | |||||||
Convertible Debt | |||||||||
Debt Instrument [Line Items] | |||||||||
Principal outstanding | $ 4,150,000 | 4,150,000 | $ 4,610,630 | ||||||
Convertible Debt | 2026 and 2027 Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 1,200,000 | ||||||||
Convertible Debt | 2026 Convertible Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 575,000 | ||||||||
Interest rate | 0% | ||||||||
Principal outstanding | 575,000 | 575,000 | 575,000 | ||||||
Convertible Debt | 2027 Convertible Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 575,000 | ||||||||
Interest rate | 0.25% | ||||||||
Principal outstanding | 575,000 | 575,000 | 575,000 | ||||||
Convertible Debt | 2025 Convertible Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 1,000,000 | ||||||||
Interest rate | 0.125% | ||||||||
Principal outstanding | $ 1,000,000 | 1,000,000 | 1,000,000 | ||||||
Convertible Debt | 2023 Convertible Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Aggregate principal amount | $ 862,500 | ||||||||
Notes converted | $ 0 | $ 401,900 | |||||||
Principal outstanding | $ 460,630 | ||||||||
Shares issued upon conversion (in shares) | 0 | 0 | 5,200,000 | ||||||
Payment to settle debt | $ 461,800 |
INDEBTEDNESS - Convertible No_2
INDEBTEDNESS - Convertible Note Hedge and Warrant Transactions Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | 64 Months Ended | |
May 25, 2018 | Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | |
Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Conversion price of convertible debt (in USD per share) | $ 77.85 | |||
Conversion price of convertible debt after effect of warrants and note hedge (in USD per share) | $ 109.26 | |||
Common Stock Warrant, 2023 Notes | ||||
Debt Instrument [Line Items] | ||||
Warrants to purchase aggregate shares of capital stock (in shares) | 11,100,000 | |||
Warrants, weighted average exercise price (in USD per share) | $ 109.26 | |||
Proceeds from issuance of warrants | $ 112.1 | |||
Shares of common stock received due to exercise of note hedges (in shares) | 0 | 0 | 3,000,000 | |
Warrants term | 60 days | 60 days | 60 days | |
Number of warrants exercised (in shares) | 0 | 0 | 0 | |
Options Held | ||||
Debt Instrument [Line Items] | ||||
Warrants to purchase aggregate shares of capital stock (in shares) | 11,100,000 | |||
Convertible note hedge, option to purchase common stock, price (in USD per share) | $ 77.85 | |||
Cost of convertible note hedge | $ 172.6 |
INDEBTEDNESS - Facility Narrati
INDEBTEDNESS - Facility Narrative (Details) - USD ($) | 1 Months Ended | |||||||
Feb. 23, 2022 | May 31, 2020 | Sep. 30, 2023 | Jun. 09, 2023 | Dec. 31, 2022 | Jan. 28, 2021 | Nov. 09, 2020 | May 28, 2020 | |
Line of Credit | Paycheck Protection Program Liquidity Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 1,000,000,000 | $ 500,000,000 | ||||||
Convertible Debt | ||||||||
Debt Instrument [Line Items] | ||||||||
Principal outstanding | $ 4,150,000,000 | $ 4,610,630,000 | ||||||
Long-term debt | 4,117,502,000 | $ 4,570,185,000 | ||||||
Revolving Credit Facility | Line of Credit | 2020 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 500,000,000 | |||||||
Increase limit | $ 100,000,000 | $ 175,000,000 | ||||||
Debt covenant, minimum quarterly liquidity amount | $ 250,000,000 | |||||||
Amounts drawn to date | 0 | |||||||
Letters of credit outstanding | 0 | |||||||
Remaining borrowing capacity | 775,000,000 | |||||||
Revolving Credit Facility | Line of Credit | Minimum | 2020 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Unused commitment fee percentage | 0.10% | |||||||
Revolving Credit Facility | Line of Credit | Maximum | 2020 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Unused commitment fee percentage | 0.20% | |||||||
Revolving Credit Facility | Line of Credit | Federal Funds Rate | 2020 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
Revolving Credit Facility | Line of Credit | Federal Funds Rate | Minimum | 2020 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Additional basis spread on variable rate | 0.25% | |||||||
Revolving Credit Facility | Line of Credit | Federal Funds Rate | Maximum | 2020 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Additional basis spread on variable rate | 0.75% | |||||||
Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | 2020 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1% | |||||||
Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum | 2020 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.25% | |||||||
Additional basis spread on variable rate | 0.25% | |||||||
Revolving Credit Facility | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum | 2020 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.75% | |||||||
Additional basis spread on variable rate | 0.75% | |||||||
Revolving Credit Facility | Line of Credit | Prime Rate | 2020 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 0.50% | |||||||
Revolving Credit Facility | Line of Credit | Prime Rate | Minimum | 2020 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Additional basis spread on variable rate | 0.25% | |||||||
Revolving Credit Facility | Line of Credit | Prime Rate | Maximum | 2020 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Additional basis spread on variable rate | 0.75% | |||||||
Revolving Credit Facility | Convertible Debt | Credit Agreement, Second Amendment | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 3,600,000,000 | |||||||
Line of Credit | Secured Debt | Warehouse Funding Facilities | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 1,700,000,000 | |||||||
Remaining borrowing capacity | 800,000,000 | |||||||
Principal outstanding | 900,000,000 | |||||||
Long-term debt | 910,343,000 | |||||||
Line of Credit | Secured Debt | Warehouse Funding Facilities, Uncommitted | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 100,000,000 | |||||||
Long-term debt | $ 0 |
INDEBTEDNESS - Amounts Drawn on
INDEBTEDNESS - Amounts Drawn on Facilities by Year of Maturity (Details) - Secured Debt - Warehouse Funding Facilities - Line of Credit $ in Thousands | Sep. 30, 2023 USD ($) |
Debt Instrument [Line Items] | |
2024 | $ 326,437 |
2025 | 28,906 |
2026 | 555,000 |
Net Carrying Value | $ 910,343 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense (benefit) | $ 49,529 | $ (17,289) | $ 43,773 | $ (17,687) |
STOCKHOLDERS' EQUITY - Preferre
STOCKHOLDERS' EQUITY - Preferred Stock, Common Stock, Warrants, Conversion of Convertible Notes and Exercise Convertible Note Hedges Narrative (Details) | 3 Months Ended | 9 Months Ended | 60 Months Ended | 64 Months Ended | |||
Sep. 30, 2023 shares | Sep. 30, 2023 vote shares | May 15, 2023 shares | Sep. 30, 2023 shares | Nov. 13, 2020 $ / shares shares | Mar. 05, 2020 $ / shares shares | May 25, 2018 $ / shares shares | |
2023 Convertible Notes | Convertible Debt | |||||||
Class of Stock [Line Items] | |||||||
Shares issued upon conversion (in shares) | 0 | 0 | 5,200,000 | ||||
Common Stock Warrant, 2023 Notes | |||||||
Class of Stock [Line Items] | |||||||
Warrants to purchase aggregate shares of capital stock (in shares) | 11,100,000 | ||||||
Warrants, weighted average exercise price (in USD per share) | $ / shares | $ 109.26 | ||||||
Warrants term | 60 days | 60 days | 60 days | ||||
Number of warrants exercised (in shares) | 0 | 0 | 0 | ||||
Shares of common stock received due to exercise of note hedges (in shares) | 0 | 0 | 3,000,000 | ||||
Common Stock Warrant, 2025 Notes | |||||||
Class of Stock [Line Items] | |||||||
Warrants to purchase aggregate shares of capital stock (in shares) | 8,300,000 | ||||||
Warrants, weighted average exercise price (in USD per share) | $ / shares | $ 161.34 | ||||||
Warrants term | 60 days | 60 days | 60 days | ||||
Number of warrants exercised (in shares) | 0 | 0 | 0 | ||||
Common Stock Warrant, 2026 Notes | |||||||
Class of Stock [Line Items] | |||||||
Warrants to purchase aggregate shares of capital stock (in shares) | 1,900,000 | ||||||
Warrants, weighted average exercise price (in USD per share) | $ / shares | $ 368.16 | ||||||
Warrants term | 60 days | 60 days | 60 days | ||||
Number of warrants exercised (in shares) | 0 | 0 | 0 | ||||
Common Stock Warrant, 2027 Notes | |||||||
Class of Stock [Line Items] | |||||||
Warrants to purchase aggregate shares of capital stock (in shares) | 1,900,000 | ||||||
Warrants, weighted average exercise price (in USD per share) | $ / shares | $ 414.18 | ||||||
Warrants term | 60 days | 60 days | 60 days | ||||
Number of warrants exercised (in shares) | 0 | 0 | 0 | ||||
Class A | |||||||
Class of Stock [Line Items] | |||||||
Common stock, number of votes entitled for each share held (in votes) | vote | 1 | ||||||
Class B | |||||||
Class of Stock [Line Items] | |||||||
Common stock, number of votes entitled for each share held (in votes) | vote | 10 |
STOCKHOLDERS' EQUITY - Stock Pl
STOCKHOLDERS' EQUITY - Stock Plans, Restricted Stock and Share Based Compensation Narrative (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Feb. 01, 2022 USD ($) | Nov. 17, 2015 shares | Sep. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) plan shares | Sep. 30, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of share based compensation plans | plan | 2 | |||||
Employee stock purchase plan, compensation expense | $ | $ 345,690 | $ 262,733 | $ 944,529 | $ 794,794 | ||
Capitalized share-based compensation expense | $ | 9,400 | 5,600 | 22,500 | 13,200 | ||
Unrecognized compensation cost | $ | $ 3,200,000 | $ 3,200,000 | ||||
Unrecognized compensation cost, period for recognition | 2 years 9 months 18 days | |||||
Afterpay Limited | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Acquisition cost expensed | $ | $ 66,337 | 66,300 | ||||
Restricted Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity instruments other than options, outstanding (in shares) | 0 | 0 | ||||
Employee Stock | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Employee stock purchase plan, compensation expense | $ | $ 18,500 | $ 16,000 | $ 51,000 | $ 41,900 | ||
2009 Stock Option Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future issuance (in shares) | 0 | |||||
2009 Stock Option Plan | Stock options, RSAs, and RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity instruments outstanding (in shares) | 2,500,000 | 2,500,000 | ||||
2015 Equity Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares available for future issuance (in shares) | 123,600,000 | 123,600,000 | ||||
Shares reserved for future issuance (in shares) | 30,000,000 | |||||
Shares reserved for future issuance, percentage of annual increase | 5% | |||||
2015 Equity Incentive Plan | Stock options, RSAs, and RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Equity instruments outstanding (in shares) | 44,500,000 | 44,500,000 | ||||
2015 Equity Incentive Plan | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares reserved for future issuance, amount of annual increase (in shares) | 40,000,000 |
STOCKHOLDERS' EQUITY - Stock Op
STOCKHOLDERS' EQUITY - Stock Option Activity (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Number of Stock Options | ||
Outstanding, beginning of the year (in shares) | 6,739 | |
Granted (in shares) | 682 | |
Exercised (in shares) | (1,375) | |
Forfeited (in shares) | (108) | |
Expired (in shares) | (25) | |
Outstanding, end of the period (in shares) | 5,913 | 6,739 |
Weighted Average Exercise Price | ||
Beginning balance (in USD per share) | $ 40.37 | |
Granted (in USD per share) | 65.16 | |
Exercised (in USD per share) | 12.06 | |
Forfeited (in USD per share) | 107.06 | |
Expired (in USD per share) | 80.33 | |
Ending balance (in USD per share) | $ 48.43 | $ 40.37 |
Additional Disclosures | ||
Exercisable, end of the period (in shares) | 4,801 | |
Exercisable, end of the period, weighted average exercise price (in USD per share) | $ 38.97 | |
Outstanding, weighted average remaining contractual term | 3 years 6 months 10 days | 4 years 7 days |
Exercisable, end of the period, weighted average remaining contractual term | 2 years 8 months 8 days | |
Outstanding, aggregate intrinsic value | $ 90,816 | $ 224,484 |
Exercisable, end of the period, aggregate intrinsic value | $ 90,816 |
STOCKHOLDERS' EQUITY - Restrict
STOCKHOLDERS' EQUITY - Restricted Stock Awards and Restricted Stock Units Activity (Details) - RSAs and RSUs shares in Thousands | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Number of Shares | |
Unvested, beginning of the year (in shares) | shares | 28,300 |
Granted (in shares) | shares | 25,918 |
Vested (in shares) | shares | (10,325) |
Forfeited (in shares) | shares | (2,787) |
Unvested, end of the period (in shares) | shares | 41,106 |
Weighted Average Grant Date Fair Value | |
Unvested, beginning of the period (in USD per share) | $ / shares | $ 97.89 |
Granted (in USD per share) | $ / shares | 64.43 |
Vested (in USD per share) | $ / shares | 88.57 |
Forfeited (in USD per share) | $ / shares | 95.60 |
Unvested, end of the period (in USD per share) | $ / shares | $ 79.29 |
STOCKHOLDERS' EQUITY - Effects
STOCKHOLDERS' EQUITY - Effects of Share-Based Compensation on Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | $ 345,690 | $ 262,733 | $ 944,529 | $ 794,794 |
Cost of revenue | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | 143 | 104 | 427 | 352 |
Product development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | 245,244 | 184,569 | 666,512 | 508,781 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | 35,703 | 28,744 | 97,858 | 75,133 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation expense | $ 64,600 | $ 49,316 | $ 179,732 | $ 210,528 |
NET LOSS PER SHARE - Calculatio
NET LOSS PER SHARE - Calculation of Basic and Diluted Net Loss Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||||||
Net loss | $ (33,760) | $ (125,842) | $ (19,326) | $ (18,744) | $ (209,277) | $ (207,363) | $ (178,928) | $ (435,384) |
Less: Net loss attributable to noncontrolling interests | (4,806) | (4,033) | (10,630) | (8,460) | ||||
Net loss attributable to common stockholders, basic | (28,954) | (14,711) | (168,298) | (426,924) | ||||
Net loss attributable to common stockholders, diluted | $ (28,954) | $ (14,711) | $ (168,298) | $ (426,924) | ||||
Basic shares: | ||||||||
Weighted-average shares used to compute basic net loss per share (in shares) | 611,276 | 592,672 | 606,767 | 572,234 | ||||
Diluted shares: | ||||||||
Weighted-average shares used to compute diluted net loss per share (in shares) | 611,276 | 592,672 | 606,767 | 572,234 | ||||
Net loss per share attributable to common stockholders: | ||||||||
Basic (in USD per share) | $ (0.05) | $ (0.02) | $ (0.28) | $ (0.75) | ||||
Diluted (in USD per share) | $ (0.05) | $ (0.02) | $ (0.28) | $ (0.75) |
NET LOSS PER SHARE - Antidiluti
NET LOSS PER SHARE - Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted net loss per share (in shares) | 85,569 | 81,226 | 83,131 | 85,609 |
Stock options, restricted stock, and employee stock purchase plan | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted net loss per share (in shares) | 50,272 | 35,272 | 44,909 | 30,338 |
Convertible notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted net loss per share (in shares) | 12,109 | 18,025 | 15,034 | 18,030 |
Common stock warrants | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from calculation of diluted net loss per share (in shares) | 23,188 | 27,929 | 23,188 | 37,241 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 1 Months Ended | ||||
Dec. 31, 2023 | Jan. 02, 2023 USD ($) | Jul. 31, 2019 renewal_option | Sep. 30, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Related Party Transaction [Line Items] | |||||
Operating lease right-of-use assets | $ 268,418 | $ 373,172 | |||
Related Party | Operating Lease Agreement | |||||
Related Party Transaction [Line Items] | |||||
Operating lease term | 15 years 6 months | ||||
Operating lease, number of renewal options | renewal_option | 2 | ||||
Operating lease renewal term | 5 years | ||||
Operating lease right-of-use assets | 10,700 | ||||
Operating lease liability | $ 16,900 | ||||
Operating lease, option to terminate leased space termination amount | $ 5,200 | ||||
Related Party | Operating Lease Agreement | Forecast | |||||
Related Party Transaction [Line Items] | |||||
Operating lease, option to terminate leased space (up to) | 0.48 | ||||
Related Party | Operating Lease Agreement | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Operating lease, option to terminate leased space (up to) | 0.50 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Future Minimum Payments under the Purchase Commitments (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Remainder of 2023 | $ 44,606 |
2024 | 300,554 |
2025 | 316,425 |
2026 | 263,300 |
2027 | 315,100 |
Total | $ 1,239,985 |
SEGMENT AND GEOGRAPHICAL INFO_3
SEGMENT AND GEOGRAPHICAL INFORMATION - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
SEGMENT AND GEOGRAPHICAL INFO_4
SEGMENT AND GEOGRAPHICAL INFORMATION - Segment Reporting Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 5,617,493 | $ 4,515,541 | $ 16,142,581 | $ 12,880,685 |
Gross Profit | 1,898,449 | 1,567,089 | 5,479,134 | 4,331,697 |
Amortization of customer and other acquired intangible assets | 56,965 | 37,361 | 130,917 | 103,414 |
Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 50,183 | 56,135 | 150,854 | 167,573 |
Gross Profit | 15,622 | 9,651 | 38,468 | 29,046 |
Cash App | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 3,584,958 | 2,684,884 | 10,412,707 | 7,769,361 |
Gross Profit | 983,858 | 774,470 | 2,883,141 | 2,103,023 |
Cash App | Operating Segments | Technology assets | ||||
Segment Reporting Information [Line Items] | ||||
Amortization of customer and other acquired intangible assets | 8,000 | 8,500 | 24,900 | 23,800 |
Square | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,982,352 | 1,774,522 | 5,579,020 | 4,943,751 |
Gross Profit | 898,969 | 782,968 | 2,557,525 | 2,199,628 |
Square | Operating Segments | Technology assets | ||||
Segment Reporting Information [Line Items] | ||||
Amortization of customer and other acquired intangible assets | 8,500 | 8,600 | 25,500 | 23,800 |
Transaction-based revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,658,668 | 1,517,890 | 4,719,027 | 4,226,566 |
Revenue | 1,658,668 | 1,517,890 | 4,719,027 | 4,226,566 |
Transaction-based revenue | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Transaction-based revenue | Cash App | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 120,783 | 118,459 | 389,186 | 343,768 |
Transaction-based revenue | Square | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,537,885 | 1,399,431 | 4,329,841 | 3,882,798 |
Subscription and services-based revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,077,457 | 902,708 | 3,187,465 | 2,427,193 |
Revenue | 1,492,900 | 1,191,511 | 4,320,621 | 3,245,924 |
Subscription and services-based revenue | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 50,183 | 56,135 | 150,854 | 167,573 |
Subscription and services-based revenue | Cash App | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1,040,591 | 803,673 | 3,045,302 | 2,146,163 |
Subscription and services-based revenue | Square | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 402,126 | 331,703 | 1,124,465 | 932,188 |
Hardware revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 42,341 | 43,388 | 124,714 | 128,765 |
Revenue | 42,341 | 43,388 | 124,714 | 128,765 |
Hardware revenue | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Hardware revenue | Cash App | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Hardware revenue | Square | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 42,341 | 43,388 | 124,714 | 128,765 |
Bitcoin revenue | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,423,584 | 1,762,752 | 6,978,219 | 5,279,430 |
Revenue | 2,423,584 | 1,762,752 | 6,978,219 | 5,279,430 |
Bitcoin revenue | Corporate and Other | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 0 | 0 | 0 | 0 |
Bitcoin revenue | Cash App | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 2,423,584 | 1,762,752 | 6,978,219 | 5,279,430 |
Bitcoin revenue | Square | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0 |
SEGMENT AND GEOGRAPHICAL INFO_5
SEGMENT AND GEOGRAPHICAL INFORMATION - Reconciliation of Total Segment Profit to Loss before applicable Income Taxes (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Segment Reporting [Abstract] | ||||
Total segment gross profit | $ 1,898,449,000 | $ 1,567,089,000 | $ 5,479,134,000 | $ 4,331,697,000 |
Less: Product development | 713,788,000 | 548,037,000 | 2,035,397,000 | 1,531,088,000 |
Less: Sales and marketing | 479,381,000 | 485,838,000 | 1,512,999,000 | 1,518,227,000 |
Less: General and administrative | 480,885,000 | 395,437,000 | 1,463,003,000 | 1,235,306,000 |
Less: Transaction, loan, and consumer receivable losses | 177,338,000 | 147,586,000 | 485,005,000 | 395,433,000 |
Less: Bitcoin impairment losses | 0 | 1,619,000 | 0 | 37,580,000 |
Less: Amortization of customer and other intangible assets | 56,965,000 | 37,361,000 | 130,917,000 | 103,414,000 |
Less: Interest expense (income), net | (21,415,000) | 6,042,000 | (28,520,000) | 34,756,000 |
Less: Other expense (income), net | (4,262,000) | (18,798,000) | 15,488,000 | (71,036,000) |
Income (loss) before income tax | $ 15,769,000 | $ (36,033,000) | $ (135,155,000) | $ (453,071,000) |
SEGMENT AND GEOGRAPHICAL INFO_6
SEGMENT AND GEOGRAPHICAL INFORMATION - Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 5,617,493 | $ 4,515,541 | $ 16,142,581 | $ 12,880,685 |
United States | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | 5,227,987 | 4,195,291 | 15,064,180 | 12,007,976 |
International | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenue | $ 389,506 | $ 320,250 | $ 1,078,401 | $ 872,709 |
SEGMENT AND GEOGRAPHICAL INFO_7
SEGMENT AND GEOGRAPHICAL INFORMATION - Long-lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 14,124,540 | $ 14,683,269 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 7,787,309 | 8,023,535 |
Australia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | 4,498,367 | 4,801,434 |
Other international | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,838,864 | $ 1,858,300 |
SUPPLEMENTAL CASH FLOW INFORM_3
SUPPLEMENTAL CASH FLOW INFORMATION - Supplemental Cash Flow Data (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Supplemental cash flow data: | ||
Cash paid for interest | $ 80,120 | $ 42,836 |
Cash paid for income taxes | 61,325 | 18,629 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Right-of-use assets obtained in exchange for operating lease obligations | 4,381 | 37,939 |
Purchases of property and equipment in accounts payable and accrued expenses | 2,766 | 11,835 |
Deferred purchase consideration related to business combinations | 0 | 14,377 |
Fair value of common stock issued related to business combinations | 0 | (13,827,929) |
Fair value of common stock issued to settle the conversion of convertible notes | 0 | (2,551) |
Fair value of common stock shares received to settle convertible note hedges | 0 | 133,144 |
Fair value of common stock issued in connection with the exercise of common stock warrants | 0 | (806,446) |
Bitcoin lent to third-party borrowers | $ 0 | $ 5,934 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) $ in Billions | Oct. 26, 2023 USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Stock repurchase program, authorized amount | $ 1 |