Block (BSQKZ) 1 Aug 192019 Q2 Earnings call transcript

Company Profile

Participants

Jason Lee	Head-Investor Relations
Jack Dorsey	Chief Executive Officer
Amrita Ahuja	Chief Financial Officer
Darrin Peller	Wolfe Research
Bryan Keane	Deutsche Bank
Tien-Tsin Huang	JPMorgan
Dan Dolev	Nomura
Jason Kupferberg	Bank of America Merrill Lynch
Pete Christiansen	Citi
Jim Schneider	Goldman Sachs
Candace Cox	Candid Art
Harshita Rawat	Bernstein
James Faucette	Morgan Stanley
Ramsey El-Assal	Barclays
George Mihalos	Cowen and Company
Lisa Ellis	MoffettNathanson
Josh Beck	KeyBanc
Steven Kwok	KBW
Brett Huff	Stephens

Call transcript

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Operator

Good day, ladies and gentlemen. And welcome to the Square Second Quarter 2019 Earnings Conference Call. I would now like to turn the call over to your host, Jason Lee, Head of Investor Relations. Please go ahead.

Jason Lee

Hi, everyone. second earnings our joining for quarter call. XXXX Thanks

with have Jack today. Amrita and We us

to of remind our want we First, everyone earnings the call. of format

Relations shortly We which published a letter our have shareholder was the after Investor available market closed. on website,

some call the to begin questions. remarks directly prepared with will before short We your this opening call

we Q&A, from from call participants. questions conference in sellers During our take will questions addition to

Reported food a including to to remind certain to addition our considered our as should platform In sell release indication on agreement differ our definitive statements closing We results not we of This like forward-looking filed an could future shareholder that statements. everyone materially DoorDash. also announcing from be by press results have to Caviar, making transaction regulatory ordering to call. contemplated Actual subject would will letter be this is those performance. approvals. conditions, we forward-looking our

for our as Also, Please of by any note at differ. available disclaim this law. take forward-looking that a that to update of the to call forward-looking look the any the filings as on date. statements today’s a cause results to information except based factors obligation We on discussion could our are statements, SEC us with required

These results. discuss in shareholder are the measures Also, for to during Investor will letter GAAP GAAP substitute be provided non-GAAP are this to on call, measures. certain website. Reconciliations financial Relations comparable non-GAAP our measures we not the most a financial our intended directly

website audio is be call replay Investor in on website. call available shortly. An our will entirety its webcast this audio this Finally, on our being of Relations

turn to to Jack. over With that, I’d like it

Jack Dorsey

it Amrita remarks everyone. we before some and questions. over Hello, A details from me Jason. your then Thanks, to for few turn

companies these creation require This those to again sellers on seen did a Along our opportunities creating at of for to specifically customer us Caviar a focus lot this able the and DoorDash. the individuals we’ve with our serving not for something ecosystem. We to way, to but one, App. We focus, incredible it the approach, scale. seller accomplish by we’ve strengthen more and Square both of restaurant To have, opportunity of building ecosystems just two focus Cash through very few a and Restaurants. started So ecosystems, increase business we been to enables company time decided sell investment. but API our more orders platform and food the

companies API of strengthen also choice specifically This us investment, of App. Cash obvious Both an an our and through was for have interest because alignment increase us to orders decision DoorDash pre-existing seller. to allow will our partnership in partnership. our

inclusive initial focus will hardware and sales go-to-market of be Our on marketing. and investment,

we the ecosystem, see Given products ROIs opportunities our multiple more for and within seller growth. payback compelling for periods

times per Cash ecosystem And in The use basically continues excluding performed expectations. purchase $X just week. Bitcoin. saw million customers exceed you, Cash it to June, revenue multiple Bitcoin. $XXX to Cash In using We App love our App million typically three Card to X.X million, we years,

and purpose Our moves These have get empowerment. enable seller on deliver ecosystems every to and will And roadmaps Cash us we we stronger. our our of App move to focus, ahead better. tighten incredible time faster economic much

over And details. with Amrita some it that, I’ll turn for to

Amrita Ahuja

quarter. this which highlights, key four are There I’d to Jack. like Thanks, call out

growth First, continue to drive at impressive scale. we revenue

spend returns at and on strong see see invest marketing our seller opportunity ecosystem. and sales to continue to returns we in Second, attractive further

and and meaningful in is Caviar contributor and Third, cash overall our investment drive improve now Fourth, ecosystems. believe a has grown to rapidly we seller revenue. will our sell focus the transaction App Cash to our greater

points these a on bit. expand Let’s

year-over-year to second results. App First, grew ecosystems net XX% across billion the grew We to our broad-based Cash year-over-year million. in quarter. revenue we Total $XXX $X.XX XX% scale. driving saw and at drove strong both Adjusted revenue momentum growth seller revenue

which comp contributed lapped second quarter Deposit. tougher We few to which the growth of two first points Weebly in total As and Cash we revenue also lapped of a points reminder, in to XXXX. quarter. the revenue events, adjusted pricing of three on the drove and change quarter And on revenue a acquisitions we quarter These Zesty, App XXXX. and the relative closed growth to acquisitions net growth the the Instant lapped this

investments trend generate a Xx at continued to towards to we continue scale sales with grow opportunity we business, of seller Xx to seen Square’s onboarding. for positive help launched a years with This their sellers payback products awareness seller returns. quarters our revenue on retention. and in three results three period marketing, brand campaign and from strong within cohort in to Second, return return attractive further marketing of April, new on investment manage increase for ecosystem to a We’ve business. In

including growth which top-of-funnel to around improved led by awareness, sign-ups. are returns campaign, this in We metrics has early encouraged from

the driven App revenue, Third, our see million three Cash monetization. in meaningful Bitcoin. excluding durability strong has key and attractive and engagement App across economics. Cash unit network, vectors, and quarterly monetization momentum $XXX We ecosystem delivered

growing we and increased rates daily incremental active for products as base our and multiple with improving key provide cross-sell streams, engagement we by we to that customer attach continue we see customers low as scale the the compelling mainstream one, into monetization and see unit costs and costs. for further of populations; large rapid acquisition efficiency and on ecosystem, minimal our acquisition growth and are invest even the customers, opportunities new growing While in across features, utility, two, the large driven we we of launch revenue is, and economics. new to cash – given stable platform What greater into

improved ecosystem our to have have entered cash investment focus Finally, and sell will attractive for Caviar, we and we into greater allow in returns. an seller where agreement seen which

midpoints. EBITDA adjusted XX% and growth XXXX adjusted for sale With of guidance year-over-year the maintaining are full revenue the XX% our pending at year-over-year Caviar, we year growth

after long-term us. of quarters, the to into of update Similar prior back close transaction. will intend ahead our to the we reinvest opportunities to We capture outperformance business the guidance the

ecosystem most expect holidays. incremental businesses land marketing effective and of to the know decisions be we of the QX seller early sales prior expenses part and We more in to make spend QX our when and can

We expect these and in to benefit us investments drive growth future. the

back I’ll start now the the operator turn call. portion to the it to of Q&A

Operator

Wolfe Instructions] Peller [Operator line Your Research. the Darrin question first of comes from with

Darrin Peller

of to curve understand users, the of Is seems Card Cash for is and something much just the could points that Thanks sources or I XX revenue room Cash higher where could you the start start that Cash around actual it’s Thanks well, us and has. I question. monetized, be just growing App, guys. different off on that? it understand it from here? highlighted, is others? across more And much help you the the of Hey if talked that about like to the can off Is maybe monetization? App then breakdown Clearly, much you App it data guys. being my you about get XX% being curious maturity want just maybe Cash between the taking Listen, the Cash it’s whether – how help us how Card mean

Amrita Ahuja

the for question. Thanks much so

engagement the we’ve has very believe and revenues. lead years and revenues on an foremost, monetization. pleased that we growing scaled of rate seen negligible that and we ago in over and now from And $X.X App, three to Cash to App annualized daily and billion growing utility from with seen So first App Cash the the on we’ve team. network focused, Cash performance are Their

we So bit a you. can unpack that little for

Card App, Cash think, the take and I Cash the of Cash Card think very ago, quarter at those that that we specifically Card. when asking this is the step attach ability for of associated one revenue was second look and monetize. were the I overall you opportunities if early of years third monetization to over App, back XXXX, in over Maybe of one we is grow Cash two pre-Cash were it you about And rate monetization that with life time. in users how with in disclosed,

and number the the monetization significant actives. engagement million With in Cash addition seen these we’ve disclosed Bitcoin Card, levers. of that X.X particular, number other like levers growth like a in Now and Cash we Card, with new of

and We growing for Card period period, Cash to in from rate we’re think the continue we attach to see that. of days early

usage metrics We’re engagement multiple in given around a really week for and strong seeing with also transactions purchases. everyday

growing So and this for driving this point us the cross-sell large is into really future. into audience proof around a and great and opportunities engagement customer for retention

In terms breaking around down of think just for of the your part App. question last revenues was Cash – I

we’ve The velocity, early Instant got have product early and we And we two that days given Deposit days around Cash a other Card, and the and many has in and are that. this the biggest into future. revenue streams dozen believe strong growing demonstrated We we’re team revenue envision we in streams. more very four the half of

Darrin Peller

right. guys. Thanks All

Operator

Your Bank. line Deutsche Keane comes next with from of the Bryan question

Bryan Keane

revenue Hi, overall get guessing I the average. than if EBITDA. lower ask company of is want just or Caviar Caviar, sense margin to we any I’m about EBITDA could for the

fast of So of reinvesting Thanks and how exactly I’m reinvest we much. we’re those? proceeds, going those App is EBITDA, are maybe it where And and thinking inside that rate – Cash growing? to of trying to if revenue those then the think growth about about so

Amrita Ahuja

for Thanks Bryan. the question,

a able to perspective, happen down it component revenue on second was the and as expected share bit financial services the of our for App, year. model lot you the where one more a number in transaction million the and break key the third. revenues be you we a relevant We’ve revenue of you disclosed stream now driver give the subscription of the of is help close in business. me a excluding just later little services let our this $XXX Cash including which revenue did boundaries kind is But From We’ll of largest little the to second Capital bit stream. statements, Caviar. So quarter. Caviar, subscription revenue upon and with to Caviar scale

of into figure there, you Caviar. So benchmark kind for backing within range a can within

gross as couriers in Caviar made you of of lower future has share From the revenue There the have component that and our a and the – But the a the ongoing there. details with margin will upon are services-based associated services. related we Caviar, closing cost. fees perspective, again, further update than transaction on streams platform, subscription it remainder including subscription revenue profile largest and for restaurants the on with margin to costs delivery of

Jack Dorsey

terms now, in we App effect Cash network from the and mentioned right of proceeds, amazing And benefit of is them. pretty you reinvestment App. lot a Cash

about within products go-to-market and also with on going multiple be on think our of between and our seller return within as a to payback lot more seller can that a we is two opportunity seller. and these periods ecosystems ecosystem. inclusive of And lot think marketing. be So of and but based the we We hardware, focus, investment cash, on will do sales there’s

looking at have So we’re opportunities critical three, in as needs the two and world build the business really App ecosystems more we’ve on more to system. the Cash the on by continuing number at and do financial of to roadmap, been side which focus ability to compelled people the have we a out a the looking the some of of accessing instead continues just where new seller and address

Bryan Keane

right. Very guys. All Thanks helpful.

Jack Dorsey

you. Thank

Amrita Ahuja

Thank you.

Operator

line of question with from JPMorgan. Huang the next comes Your Tien-Tsin

Tien-Tsin Huang

afternoon. Good Thanks.

I percentage the ask invest but a if record amount still in know said. more Just gets to adding math plans in I’m you GPV wanted right. of on and just growth GPV seller doing a your notional the lot GPV, of attention, you’re terms ecosystem like to

billion and you you on confident talking So do that accelerate whether that you’re my actually Thanks. volume seller quarter with can feel five keep the can a investments is question about? that adding ecosystem

Amrita Ahuja

question for Tien-Tsin. Thanks the

and and a revenue also part don’t on think cross-sell of with GPV don’t is like we as funnel people a the App about manage growth of GPV, up a both why figure, GPV, with business as across picks we the to GPV seller It other mind, Cash that up we picks streams revenues ecosystem. include the driving the company, revenue services think investments. primarily Keep awareness around one We are include of when the ecosystem. which subscription in we, payment and as focused driving we’re piece top our ecosystem. these in one and along piece about through investments activations, of things

of who adjusted very value our are grew of encouraged and which now larger revenue seen of over quarter we of Revenue that believe the in the our including sellers, we’re have grew which pockets – across really XX% $X.X we actually with related is million. is the quarter the multiple sellers $XXX faster mix. newer have And GPV, fully the in the by That to sellers that serve Within and rest amount. that business. captures lot we are of some full ecosystem. are GPV, that the include the payment channels growth growth also we year-over-year. largest XX% of growing base XX% GPV grew breadth around more GPV grew the that the levers at we’ve than developed that the of of a some million GPV, And of that to fastest and ahead half than rate, Mid-market on

to anchor growth for and our So restaurants platform and like around individual offerings think in sellers about the customers. point-of-sale or breadth the offerings overall revenue that you about would omnichannel developer we things business of our our But is that have for retail captures products. I thinking again, vertical

Tien-Tsin Huang

Thank it. you. Understood. Got

Amrita Ahuja

you. Thank

Operator

Your line with next question of comes Dan from Dolev the Nomura.

Dan Dolev

for question. Thanks guys. taking my Hey

Just is Eventbrite, question. housekeeping GPV a that this quick for quarter? The in included

Amrita Ahuja

still a contributor material for so second to Thanks the GPV question I is quarter. in Dan. the phase, that wouldn’t of testing think as in Eventbrite

launch out We this long-term and of Eventbrite work omnichannel to solution, for half solution a on are the hard building year. back expect at in

Dan Dolev

I question of we’ve Maybe Jack, work mean, but and us and for too. can a a the App both get the give the been ecosystem, Cash it. both – for getting Got maybe of been transaction, kind on concrete consumers, of the grail and maybe you of one which sort you doing lot ecosystem you is of how thing? helps believe the I sellers the sides like whole the holy of Jack, example, this we’ve

Jack Dorsey

you. App both of ecosystem a lot Cash lot do seller the a strength, individual focus ecosystem. are of the and with build so the agree is We first I addressing there. opportunity to see Like, ecosystems, and needs. ecosystems There’s critical our

and it’s for and appointments, retail register and and Square whatnot. capital restaurants seller, payments within for So and and Square

the well. On people it’s to the developer Direct daily Bitcoin host on basis, cash Cash side, of the to that services Deposit Card peer-to-peer other Deposit help Instant to on as like platform, from a a everything to

ecosystems, have them. and we think in So some crossover seen power there’s two do between connecting we of lot these a that

Cash both ecosystem. We seller App, have paying is been beneficial through Cash to some and which customers of the payroll the App the our

through which more and we Cash soon we ecosystem ago, in time Caviar where is have been the DoorDash fits the be around beneficial and App, Some ecosystem started and more as to paying also that couriers to Cash Boost as Caviar and to the well consideration And App well. doing that ecosystem.

ton believe do two. connections we these there’s between So a of

question, this that of some much we’ll be investment, making focused connections those answering And definitely stronger. much,

Operator

comes Kupferberg from America of Jason [Operator Instructions] Your question of the next Lynch. from Merrill line Bank

Jason Kupferberg

Hey guys.

high here. end we’ve as second seeing, beat So revenue the the for guidance you quarter did, become accustomed of did you to the

the did that get around in your understanding a the accompanied by you Now little have you an may outlook is full very quarter, this to annual typically, despite thought have not what and a to just where raise so revenue bit that not process might perhaps another second the change led I that’s strong wanted been see of to historically, performance. of guidance. quarterly decide half uncertainty/caution We year

Amrita Ahuja

question. Hey thanks for the Jason,

Jason Kupferberg

Hey, Amrita.

Amrita Ahuja

revenue the that to I'd transaction raise, the remember to So, respect quarter, we've this announced with urge Caviar. you with

rest points guidance we quarter. Also the for to finally, which And growth And of we to we’d guidance of driving of the post transaction, year, update happen was that, year. will that beat we're expect last remember, later million with we than this two so long raised closing course, $XX which this you respect last more growth, obviously for recall had term. the quarter of the by or the

making And so the this in the expect year, we're that to growth of us drive back future. the half we for investments into

Operator

Christiansen Citi. Your with of next Pete line from question the comes

Pete Christiansen

tougher other but I refocus players, seems my question. the you here, us core ecosystem taking Thank a – at POS you can be sense, cloud competition appreciate give least, getting can give for with you to seller but sense Jack, And the up can into the of us at like this of in on side. to you channel? the a you. Thank the retention how seller a response Is perhaps qualitatively holding maybe is that? more things least

Jack Dorsey

take a things first particularly. small based on hardware opportunity ton is sales and very, second. strength the and periods Yes. of – I’ll just the marketing good We answer the Rita focus looking see will this our through part the within go-to-market a on have really, mean, we and is some I very multiple investment will and doing internally. And the products also not We this ecosystem like our payback on – of of looking just think seller through return outcomes. externally,

pull us. to one to compelling, that sets and I very an us something a and very sellers all number will help still see And tools the you come the believe continues have the to other our your a for just of one in download would solve and, second products easy that. tools ability fact have differentiator ecosystem. be question, use universe an have multiple thread that and at fast cohesiveness want app on one that that critical we the there. suddenly, entire We once can competitive apart of The right of and needs So do that of It's of to we who do all find our for with retention. that is competitors which from the around array is tool thing very

and we ecosystems, of So, within see we seller. on now really get focus to a the opportunity two these lot opportunity

cash. about, roadmaps really which ecosystems. which strength. a previous and the as for two a even to ahead, caller incredible beat and having significant think expectations in those some the within bring I'm to have cycle positive Both there's reinforcement excited we connecting continue more both especially our opportunity this indicated, We year, two But ecosystems between

this value strengthens to adds the constituencies So think, allows really and company. critical both two to ecosystems that, I of us on a lot focus

Amrita Ahuja

remain And Pete, business you Day retention paybacks I’ll point. our dive back and talked add time deep paybacks years our in at And retention. just the and has how evolved a better. the look in at time a shared to that we two We we ROI dynamics with about about or then, four-quarter ago, last ecosystem Investor at about range. talked if business the lot seller the you the seller same our since full The largely

We’re them at three-quarter trend We also We seeing higher investment now significant range. see new cohorts return the We at for our that joining levels. to levels. positive revenue retention see see cohorts. very revenue existing is on

of All scaled have seller back the that year the of year. the because of profitability this a invest And half profitability, and very profile scaled. drivers into of ecosystem has have strong the to next that to led strong level because these this our the as economics, because it’s unit it’s driving business of in ROIs of we in it’s business confidence attractive even

Pete Christiansen

you. Thank color. Appreciate the

Amrita Ahuja

you. Thank

Operator

the Your Sachs. with next comes question from of Goldman Jim Schneider line

Jim Schneider

how the much that base? total of subscriptions product adding little new and sellers existing maybe about of and of question. for bit to about additional and sellers, color respect can you services about is in thanks dimensionality terms how you of the the a on making number and on after much the to extending the afternoon and kind investments With seller offerings going Good to plan us that of of especially sellers, give this the just of taking ecosystem, my larger is ancillary

Jack Dorsey

want types up be think this sell tool of getting a to we’re sure building their sizes sellers, all that sellers. all seller started just to locations enabling the make who’s within we way to the We to with one houseboat, is all ecosystem. way seller of the So, on about for able the XX

going out product big the now to sales right is and with better be going of and the be marketing, and we’re So that very API. And to on hardware platform is the A our very on course, balance reach and small continuing to focus to right that focus and better. us our large. making for now the will developers

a platform DoorDash. from is lot benefit We as approach. continue true to a move especially taking of to we see Caviar This

the restaurants. As also by succeeds, succeed DoorDash we at the restaurants our using their hub, orders orders and orders succeed the manager and API

So we that confident very this feel is something in.

Amrita Ahuja

have add some And already to that, to delivered that year efforts marketing Jim, of and traction. just sales we’ve the seen positive this

marketing other like greater And new look early, campaigns in well. awareness our example, delivered our metrics in marketing an really as and by. So actually efficiency When sellers traction as early still this positive for way our campaign X top-of-funnel that conversion at April invested in brand with awareness while sellers. brand where million it’s in markets, markets, reached we’ve spend that we’re awareness those encouraged direct we performance driven international brand have

So well full I on funnel, in of as the think drive as awareness Jack mentioned, here. areas you’ll see direct brand of top performance-related to us marketing hardware, the ecosystem as like lean some

Jim Schneider

you. Thank

Amrita Ahuja

Thank you.

Operator

Your question line Candid from Cox of Candace comes Art. with the next

Candace Cox

a Hello, my can classes is specific ever from my seller Oakland, California. entrepreneurs I Square am is, will And business owners to that some attend? question business offer CANDIDART Square and

Jack Dorsey

idea. also, Square. great a We thanks and for using is That –

program started and And a editions were series do is bring night Self-Made, Pittsburgh. we’re free which of a in series believe Oakland first actually to We and we this have going to XXXX. called the Atlanta schools, in

media have website, classes So marketing, social and need for next everything up and setting and year, should your business. we start grow store you to on you online run some a

Candace Cox

you. Thank

Jack Dorsey

Thank you.

Operator

Your next with Harshita Bernstein. from comes Rawat line of question the

Harshita Rawat

e-com the since for is business and market, in taking also afternoon. primarily acquisition. question. been moving peers, competitive good store. Hi, has a boost I this omnichannel, fiercely for many are of my a now to it’s Weebly your But ask wanted Thanks you about whose

it there? talk about you How can differentiators competitive fitting online? in So, evolved? is And in Weebly the has how

Jack Dorsey

Yes.

we continue and this and We either have want big and we sell offline grow. a want who omnichannel ways to pop-up invest of believe online that experimental So, retail. us we do to value our shops because and strategic of businesses, believe sellers for that or a lot in something more for a lot physical considering like selling to online, they’re online is of

we’re up you sure where to service come is want open there. everything the make we app, can and place So a need you download that to, right can you an

invest to well. everything I think what sales in make the offline, all about that’s opportunity mobile, continuing us doing from form and in all we one not differentiates as all to lot really channels around and mobile omnichannel hardware is it’s which about including our management, and that And needed we channels, one so store seller investment bring just of place, including sales, and and these e-commerce, into increasing the a hardware marketing, the continue to everything can together And to and online the to see offer, in of not that in have provide dashboard, online insights to a the suite appointments, grow sales of that it’s business, actually around strengthen. will other tools customer complement relationship, grow want it. just we business what but we’re capital,

today do we so the more for Hence, So we’ll room benefit a much so from. were why there’s and think here. us lot important moves

Operator

with Your line next of question comes Stanley. from Morgan Faucette James the

James Faucette

much. very you Thank

how wondering U.K. you if looking the and last how marketing increased talk and the talked at about expansion and been can to services. You versus But guys lot and expanding have launched marketing was – about obviously, U.S.? to in dedicated Cash you’re efforts of year markets has effective that and international a of that you campaigns Thanks. that App you’ve the identified international in the efforts,

Jack Dorsey

Yes.

want a that continues a to for UK, market. So, us focus the product we have this sure remarkable within be and in make we to

brand driven been costs acquisition customer compared acquire have in new and efficient this to UK, investing by with We campaigns seller XX% the year. prior the in over down to has

be us. UK best, at ecosystem are more create you look UK, UK, multiple a And people as utilizing as happening and quickly launch strive managed Square but continue the and to continue the are which learning we to in we possible. and the within milestone we to our we the through are of we market. And that’s strive aware huge once and through our a to which to the products continues not bring first opportunities everything market of So market and We’ve more know, as more to UK to to media, of flywheel marketing showcase the where was to for and it. the also within uniqueness more for the

Amrita Ahuja

and And and add step step sure is, of in performance part to drive products suite that a to drive any – and that breadth our we the approach of products X, have of there; our to X, X, Square a suite we any just conversion. on full the gaps drive gaps greater campaign step ecosystem; in see to markets fill understand question, and your to media that fill international brand awareness international make James, so have expansion to full full people that of we

the have and internationally and see full that us lean come, in offerings ramp. year product this to earlier in still released to therefore, we’re sales things you’ll fill and gaps a of internationally, that of So product some But we with marketing to with continue in, suite increasingly. offerings

James Faucette

very Thanks much.

Amrita Ahuja

Thank you.

Operator

next Your with the of Ramsey question Barclays. El-Assal line from comes

Ramsey El-Assal

partnerships in markets it’s different expectations other? a for QX would that in you bolt-on wondering these if I international to Eventbrite some roll sales And changes in about different taking wanted I Is any it in thanks evolving. model when just around out? direct and more in the smell does guidance it your question. and just – Hi, was look question, quick more by how and your markets? distribution to my Are ask was impacted

Jack Dorsey

question. Thanks the for

now So, I confident shift digital think, example of really for to card and is country, because a where sellers providing our be feel have Japan to market both tailwinds payments. the to good of we the is unique. lot And this in who very in buyers a and is subsidies every from success we going government,

Tokyo in bolster global We travelers have that the a events up number Tokyo. into coming number of of

use We’re every the to go within cards they and expecting city the merchant country. that to within at

different the So we’ve does seen approach in seen very have a in that require Australia. UK what and we what from

going within cases, slightly channels more different. of some best in is And to what sale, folks is ground cases, one each it So, are in who it is more each And direct be some aware on we are have partnerships. the market. the

we flexible want as So and we approach to just every be agile market.

Amrita Ahuja

up of with And beginning does back in your the ramp the to guidance, contemplate the on half respect the year. and question Ramsey, of the it of Eventbrite rollout

Ramsey El-Assal

Okay. Thanks so much.

Operator

comes Your of and next Mihalos from line George the with Cowen Company. question

George Mihalos

taking question. I just Thanks we there little simple net that for lower as quarter toward thinking wanted looking mix in to going is larger the anything forward? the Great. else and transaction is a than bit about bit be ask Or as what on merchant? year-over-year, we the yield in little a down and came for that should my were

Amrita Ahuja

it. look we we sellers. year-over-year. expected. at got with opportunities. of overall really margin help of cetera, margins throughout et quarter, these ecosystem last is you down We X.XX% the expect overall Yes, are orient margins a transaction this isolation as back two to Transaction was revenue And us efficiency dollars that discussed focus revenue in growth towards because basis along we down which George. continue slightly transaction use along and larger metric GPV cross-sell to quarter in We points come periods, at, of which grow the payback metrics as the success. with with measure was year Hey, that of It the we that, absolute second on retention, not again to revenue

Operator

from MoffettNathanson. comes of Lisa question with next Ellis line Your the

Lisa Ellis

A my from follow-up seller taking investments sales me for Thanks and on ecosystem. marketing afternoon. question. good and the the Hey,

upmarket, move or as increasing a you XXX,XXX use amount called in heavily channels. business your an XXX,XXX, or direct out, from you is competitors that As greater coming ISVs of space channels bank sales the XXX,XXX or and of than like to lot the

upper you. think Thank your some on go-to-market model there, market? in up channels, Square’s sort what’s in of As the of view strategy, your you’re like investing go-to-market channel your you do how about strategy those

Jack Dorsey

mean sellers? larger be you Just do clear. So, to when you say upmarket,

Lisa Ellis

XXX,XXX Yes. end even greater Larger in sellers, like upper XXX,XXX. to of XXX,XXX than or

Jack Dorsey

Yes.

seen just So, and Square to Retail, it we that where what’s for the that majority larger saw over XX%, XX%, unique Square them, service. a we are the dynamic. pretty compelling for sellers. is of Restaurants a have into of really the into and we’ve is And I’ll attracting you – app point a interesting self-serving number and

marketing who to go just to a and seller management cross-sell our use. opportunity because sellers that And need don’t we just and call, an means need it they we really it people can as a where Square right do, that’s important make sellers can don’t away. is to of to And – within a show intuitive ecosystem and where help approach if Store get lot built the self-service tools have becomes an and App then go that, can for us and sales the larger model. enabled interface scalable they done, smaller really we’ve that other they account So,

open that product So, we strengthen easy, accessible be fast, one of a models, benefited any have a we other always just to really we but lot elegant we And a to the can of – size room having seller utilize. we we think have have. and will lot that a from

Amrita Ahuja

spend, when Lisa, an and just marketing at returns that to our invest our approach, sellers’ at see opportunity and strong to looking add efficiently. we to in look we sales And sales particular,

sales to Our shared is already on high which had already sales the teams you attractive. investment and and account that management returns we’ve return overall has on marketing, comparable with

sometimes So larger our an with because see invest costs, team those those and opportunity lifetime acquisition often investments we on of value the team but strong sales returns to that higher customers, higher and sellers, we of those further. touching upmarket this is have know sellers,

Lisa Ellis

you. thank Terrific,

Amrita Ahuja

Thanks.

Operator

next Your comes from question with Josh the line Beck of KeyBanc.

Josh Beck

Yes. commentary in the question. taking sizes. know Thanks acquisition, out for frequency, Boost there’s the customer some like letter ticket calling things of I the

elements think are those for all really I important restaurants.

you So DoorDash. have

with That partners, other it you. a attract timeline leading and how Is Thank of about give type sense maybe takes potential could you maybe long that’s helpful. for some encouraging think it I you it will maybe multiyear the really effort? of Is really be conversations others. to really think But a quarters? us signal. tenor when

Jack Dorsey

Josh. you, Thank

doing. Boost super with been We’re has what happy

possible, horizon for that on very take controlled upon opportunities see to we we really running functionality features mindset with So ourselves, compelling we this had ourselves and again, making a to started more do we but of and it also we’re to as you with a as want a sure add experiments. that partners. the And with interest. in to create a and We’ve very particular. partners lot of took where to continue controlled know, And allow approach quick as Boost Boost more learn

So, value both our we’re and for creating customers. parties

value is isn’t certainly people rewards lot as we’ve and Boost. as we’re have easy program, the the and never as and with fact sole the propositions for of that what a of to that as had straightforward one the simple a Boost access One program done serving that

a experimentation. optimizing So, sellers high our through to we customers for and that companies our and matching delighted comes want and And that the lot we’re we partnerships bar and would have learning, brands to that make very with we’re utilize. of and be for sure that transactions love a

around that’s a function, to partnership received roles definitely we of we interest. thesis for seen lead the of have be but might lot the and business. we And Twitter, interesting for but So on really of have are down expect sales a you full the kind this it, a line as lot opportunities with hiring

Amrita Ahuja

of in of the flow have funded the But ourselves. the a economic controlled of lot we was program, side to as rollout fund just on and – Jack of the Boost to this funding want is mentioning, Josh, we – the And cost clarify, just revenue. have program, the contra help as also part

revenue, excluding we value opportunities the and in of this with Card us that disclosed strategically program. quarter And really net continue fund any to So cost already Bitcoin, our as to our with million Boost program is $XXX attract associated customers. gives more deliver partners even other Cash we that this more, to

Josh Beck

Thank helpful. Very, both. you, very

Amrita Ahuja

you. Thank

Operator

Kwok comes question Steven line next KBW. of with the from Your

Steven Kwok

around for taking there that little GPV specific that we is is transaction losses. the that Hi, thanks up as anything that? I my has use one questions. the rate I causing that’s like going event a It forward? rate percentage should wondering, was had bit. a been And seems of a taking quick

Amrita Ahuja

year-over-year at this X% cash for by to help. happy item, our driven adjusted us, really business revenue. line Sure, business, capital volume our business. and And is loss Risk of growth relatively our was consistent across each seller of

grew bit we first so quarter. past XXX%. originations grew that, the this GPV as to And seller in cash this you quarter, grew almost past And Cash, put disclosed volumes XX% on just a of little saw XX%, color capital quarter.

the adjusted leads got strong volume of we’ve the has at revenue. year-over-year loss, across business, which obviously into So, is X% of consistent growth and risk that that stayed what

remains with On And at of X.X% core loans, capital business historical the seller GPV. loss less flex our with loss are risk X%. business, below averages than on rates consistent

Steven Kwok

Got it. Thank helpful. That’s you.

Amrita Ahuja

Thanks.

Operator

from comes question last Huff Brett Your Stephens. line of with the

Brett Huff

going as question. the and afternoon a thanks and Boost about less follow-up habituation more that forward, of or far? you your cost is the Square? value that and of you less shift and know that, Good kind taking think so evolution economics Card. Quick enough incremental of coming but those App Square deals for what’s part incremental to I on the a enough the usage to partners of Cash of see from delivering And merchant people to the and yourselves the do more

Amrita Ahuja

Hey, Brett. Yes, happy to help.

of few the early the program. a in just shared ago, we’re days we minutes As Boost

in. year a about We’re

Jack year, as really offering into And debit launched prepaid itself. a card, prove I the incentive value think also Instant the Card but the here, of for continue out believe Cash we through year launch program less Boost said, it Rewards last a we we only here of where, merchants. around Card we just a we see have not join to after delivering Cash value consumers, for as to where the to a strong than unique our customers May

with so program and in And to days milestone, be quarter point the drive in excited and creative continues be this first in the And early share ability team Boost. very, innovate of time Cash also drive for to here, to very the past excited. first merchants. we’re early we’re and with experiment our to the continues is we’ll And planned when towards into that proof But here. days future that. There’s the the is customers you team this in we’re The DoorDash traffic the right. roadmap things

Brett Huff

Great. the Thanks time. for

Operator

the back And at call for closing this company time, I’d like remarks. to to turn the

Jason Lee

that will again, Thanks participating third everyone November I X. XXXX Thank on be joining you, we hosting would for call everyone, our call. to like our quarter today. earnings remind for

Operator

disconnect. and This does now Ladies and the may you in today’s gentlemen, program. participating program thank for conclude you

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