SQ - Earnings call transcript Q1 2021

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Operator

Good day, ladies and gentlemen, and welcome to the Square First Quarter 2021 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. Thanks for joining our first quarter 2021 earnings call.

Amrita today. and Jack have with us We

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

as addition not take this filings remind contemplated obligation as statements. call Please everyone this indication During factors with SEC today's our performance. of we update for that results from a will an call to take those cause to will note disclaim statements, forward-looking that be results We to forward-looking statements Reported could any us on could statements making in are required materially on the date. We of participants. to based Q&A, forward-looking conference Actual future except the the questions look results by like at questions would forward-looking considered as our be Also, should from differ. call. on our we a of information by customers from any that our to discussion law. differ available

accounting of we April. monthly to will of growth for are for not profit results provide we for review closed gross interim month our our not performance preliminary month have yet our call, by current the as represent the April April, our These and this estimate subject financials results During auditors.

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

An Investor of I'd like being its our on Jack. audio be our call to website this is will that, entirety Relations in audio it turn to With on available Finally, over replay shortly. webcast this call website.

Jack Dorsey

joining you Thank Jason. for all us. Thanks,

that date, us five newly across the facilitate $XXX than focus on participated loans us Financial Paycheck states of and small million we US, Services, quarter, employees. we in many $X.X less which With again focus Program, small to than to in billion customers the mind, bank, through in helping countries majority to to enabling more serve more continue US in sellers Square the to quarter were will with reopen. eventually this We our the COVID-XX businesses. as banking to our first in to vast access opened expand services allow many businesses the Protection

saw to disbursements made App, days early. through bills. payments, available We across and We utility as the platform critical rent, access on two individuals also customer Cash food funds car enabling these to such spending up government to needs

that updates to Square Now launched or business efficiently ecosystem through place. Amrita feature and communications Messages buyers before your Messages Square Square buyers from in questions. will one accessible new our on our with a online in email. Receipts seller their this from consolidates Feedback, Square sellers and connect with Appointments We I is a seller's and text Square quarter, few turn dashboard Square

latest purchases we able and their upcoming attention relationship expressed can to have Now interest help their while buyers respond ultimately or other Consumers both keeping sellers being directly business. regarding message this the e-mail grow the to and or can each appointments, text and sellers deepen and will in simply sellers on believe sales.

and average, compared Larger or gross for Xx and than for enabled the vertical who have Restaurants point-of-sale greater for opportunities friends to products, new purposeful to free Customers sellers, larger too. to functionality. effects cash. Within to come the app, have of This adopted quarter. breadth which attract generated connect we Bitcoin including quarter, opportunities offers first Square average even can Cash ecosystem. us sellers build Our launched peer-to-peer this to Bitcoin. more and also use products. customers Bitcoin within more new gives Square of profit our network has seller attracted for found to the and to ecosystem, in our Square family omnichannel our Retail across Sellers than retain now the App We've to cash the three seller on send entire

of with quarter, integration This retention, to deepening sellers. Square we Square customer cash App to in Cash and using are excited and enables allows manage scaled reach millions rewards and for view because Loyalty customer These incorporated individuals, engagement only for to sorts using integrations possible we for opportunity connections. and up App connection sellers we're ecosystems Square the a engage and about buyers The loyalty. discovery, have the and of also future buyers that drive the between tens of richer Cash while both experience buyers

and closed Square we stake Square's growing bases. intersection majority start artists there's what to the work the be fan joined similar Making has needs has JZ Directors. to Board able this And to work. We're and believe is for with We're Amrita. focus in their Lastly, most title and the acquire music of the a enthusiastic start really for compelling done a transaction economy. critical to small sellers. ownership that, going finally over on to artists to in economy We between of

Amrita Ahuja

like Jack. are to topics today. There cover I'd Thanks, three

an pandemic third, XX% start growth $XXX the and our quarter. was the last behind investment rest first sellers' income early gross increase the First, year. strong profit Cash adjusted XXXX, trends increase profit before quarter to regional at growth, In February million. driving forward; saw reopenings, an Each Net performance. in lapping few ecosystems of this our of for second, and in quarter, relatively an the and approach first exhibited year. at in our given year-over-year. was disbursements about impressive going thinking gross of delivered $XX factors our App and A stable of million, in comparisons gross January of Seller million, on as improved government profit update XXXX; year-over-year. a April EBITDA our strong through was $XXX March $XXX business and I'll we're of look of performance growth generated million We our look the XX% how ecosystems strengths Seller

more First, growth cohorts larger acquisition from meaningful four from year-over-year, account with up Seller we continue year total We seller benefited sellers XX% now ago. a In GPV our a GPV. points seller mid-market from of sellers, GPV first which mid-market than mix, during also XX% existing recovery for the in progress twice strong GPV grew the GPV growth of notable to and make Seller pandemic. of the quarter, experienced

as delivered profit launch year-over-year in US market, drive see quarter the gross year-over-year. new nearly our up services more Second, we We our globally an and markets and our with markets. software growth, outside XX% greater first and offerings to the with largest of to financial doubling strong expand opportunity scale Australia,

from year-over-year year-over-year. strong million, than of returned more XX% with growth. generated as positive online gross to our volumes remained up profit present up card channels even volume XXX% $XXX Third, Cash App

of at some the drivers. Looking

platform Card of as the First, XX as high into both per Card monthly million ecosystem, strong week first the Cash more example an in Act in well as ecosystem itself, a of Monthly transacting in quarter an which with with broader for we spend actives across of Cash times across for our our a million that the engagement the first each increased saw driven a on point an March average the ecosystem. transacted non-card has engagement, transacted product Cash customers products also March is App on products card all-time twice We the other in on given year-over-year. more been reaching per of quarter. XX actives customer. average. in adopted than nearly month reached X transactions has product on number as active Card has entry

ecosystem. We money are spending to Second, or been Cash on inflows Cash of year to strengthening Ultimately, foundation, ways funds we to the in funds a ecosystem. gross facilitate saw in correlated Cash spending Cash the for primary into of the top have of variety to into amount use of increases, consumer and across XX% power. this Cash our of making App's importance inflows they our more is customers when have the inflows customers its increased bring App App they wanted this in easier power pulled When inflows it month-over-month. a driver profit. pulled App touch priority App. We into the March,

in quarter than well million as XXXX, Adjusted our Cash by Moving provisions Seller more to driven loss quarter to was topline existing first transaction release fourth the the profitability. and as both quarter loss EBITDA $XXX $XX in rates as business expected. primarily of seen million solar in of App the favorably we've late related growth come of for strong

for both trends we share wanted in to you with Next, ecosystems April.

and expect than Cash to gross grow our XXX% profit for by year-over-year App approximately ecosystem by in year-over-year more We Seller April. XXX%

growth the June. from the second tougher May rate moderate in quarter, comparisons and We get growth April expect to year-over-year gross through remainder profit as of

monthly or underlying XXXX reflect Given rates CAGRs to growth annual in XXXX from a year-over-year on two-year the we compound growth variability basis, using suggest better trends to trends.

April, was we've basis than consistent in For a which rate first more was slight seen quarter. gross to the two-year profit XX% Seller's a compared Seller, more improvement as CAGR growth a on

drove spending We an gross the had the March. slightly we believe down compared to power approximately For and in inflows in was XX% Cash to two-year first quarter App, government in uplift from customers April. inflows seen funds, March XXX% with in from normalization CAGR greater a which have down profit XXX% since April in our

greater products, into will believe longer customers we utility more During these and term. inflows, which our more found periods of ultimately ecosystem have Cash adopted App drive elevated in inflows

XXXX. focusing where to lastly we're Turning in investments our

the of distributing loss operating on which momentum, the midpoint. A to meaningful App investment, risk of non-GAAP On operator of in investments investment across to $X increasing our is billion with prior investing I'll XX% expect growth. expenses, In in excluding and to of compared reach business the is it new ecosystems call. the a start expanding title, during remain and as of range continue $XXX growth focused XXXX. back billion guidance. remainder on increase at We included drive our we well intend back turn opportunities the to the to strong early which with returns as $X.X the an ecosystems customers We million encouraging the XXXX, around long-term portion Seller to XXXX, now and to on our our We this represents and world. Q& intend prior reaching of year-over-year summary, on start in profitability to grow our now invest strong not Cash disciplined our see we

Operator

JPMorgan. question from your first [Operator Instructions] And is Huang Tien-Tsin with

Tien-Tsin Huang

probably reopenings impressive probably played a much wanted a maybe ask here. you just the you're acceleration your that Amrita, some maybe Hi, I so for to I stepped-up there's and investments, to way role there. thanks seeing know mentioned stimulus unpack a role, early on you played like acceleration. if returns

think to might it think go well. possible way? it forward it that maybe is So And about Thanks. unpack help the I as us

Amrita Ahuja

a tailwinds, coming strong Sure. shifts Thanks our for ecosystems are out of stimulus, from between question, the both investments. reopenings, and from Taking secular step Tien-Tsin. own pandemic benefiting stepped-up back, the

it back reopenings, look looking the from cohorts If 'XX year, XXXX. in April they a last is you clearly the to fund our I when government very existing We've basis, was reopening, improved seller a of rates of of we see Remember, recent levels. notable sort the on with looking seen year, in their discombobulated retention retention the have for out. GPV in down can of gross this And we're It and this the to pre-pandemic to in GPV been here our you trend 'XX. retention, now time of March at the the nearly see encouraged figures sort most you in XXXX in that to where seeing fourth from really in between out, GPV stimulus existing the levers you levels. profit three three cohorts to rebounded in sellers XX%. of and we've investments, With year seeing called two-year around We're of from and since retention QX first unpack April. playing and out XXXX, were called positive that all normalize think to impact improvements that growth at COVID close world the months. When about that that back and of half was improvement our back and actually to was XX% retention quarter down sort for you last

strength in both, to seeing reopenings as well So bringing due new cohorts much there, is we're the very what on. strength we're again, as in that

throughout we current now engagement seen into we've And that trending engaging QX called our we've playing customers on a those and an of think, recent greater to older cohort sellers. quarters. historically are our see year business, in Cash to our mix we're QX, our customers' of payback about we trends, from through strong better your partly among healthy in in investments for in but to newly perspective, retention normalize prior cohort. With QX. any of see saw Our April, basis, elevated XXXX the Seller where that And made as in similar pacing App, acquired from a gross beginning step of compared basis, here in year-over-year out in out -- We omnichannel making are around March. we investments fact, QX, And that retention combination new as we stimulus of inflows we Cash cohorts, investment last in growth in those the the App, to with can cohorts customers larger that indicator then most perspective, funds smaller XXXX business, strong within to XXXX our a very XX% per the basis, investments strong well our an from plus see XX% bringing really this contributing run of to strongest cohorts as the customers. attributable step-down, times five out cohorts are it's and that with level, make in a investments the ecosystem, of continue on per the indication of in of customer point the some quarter, because month-over-month earlier Cash And inflows that's the step-down showing we a ahead on our aware broader to the year. as our respect XX transactions per the a contributions, App more February an play XX% to annual early think up the early at where account. these profit month of From to level most again, customers of still want a in in strong make investments certainly the that stimulus product lean returns is talked cohort on we to at profit dollar show we remainder you ecosystem. customer gross And about to continue dynamic up

Tien-Tsin Huang

Got it. stuff. Thank Good you.

Operator

Our next from with is Lisa Ellis question MoffettNathanson.

Lisa Ellis

Good afternoon.

Cash the quarter, more additional you've ecosystems, bit user So explicit which thinking of Thank first the underlying of you're other a looking growth, integration and helpful. ecosystems be talk this the meaning you at two two mix? making engagement growth, about think, between goals you. what the there of would you're how focused on sort between highlighted monetization, there, Any Can improving integration just of Square is types I funding connections into about you App, Loyalty the one made. color

Jack Dorsey

question. the for Thanks Yes.

do Seller verticals is And There's buyer have also So, of internal. on connections which superpowers an over goal but side serves multiple once, our you side that probably that in of App. fact that these only to realize not the ecosystem we is a we lot one we connections. Cash all the our have the think of at don't more hear are of, time

the and on on both utilize move allowed vice seller infrastructure. build because side, internally So to with we Cash that's much shared everything fundamentally, us App the have faster side that we can ecosystems And we versa.

them those at App effects offer. and that external ecosystem, We making that. that Loyalty great is as Cash at and people into other Loyalty is have we you to how of then build example understand loyalty we Cash really Cash have that. programs many App used, Square to and This you you one App We many as Card the the at network and a allows connections, have integrating Cash -- our we Sellers, is side, that big App on Cash sure Cash we as look look Square you imagine we us loyalty the and connections because utilizing customer-facing Square in itself. also have think So look App visiting the -- a can external develop so customers Boost, around

make perspective. and that for we're what's customer a and ultimately, we to just we what's a uses have control. learn of looking right And most best at So drive the it critical. And to from we connections as sense more, see want Square and have more make that Sellers Card around decisions Cash as more we lot

a look more for you ton. a continue add title, for compelling connections imagine can And you here. in what that So opportunities can to makes ecosystem so we ecosystems acquisition even imagine to three between all There's more, we're because us. new going as even

this our first these purpose unique. a We'd that very place. building quite of I good powerful just the all same very, can be one, ecosystems part is is multiple under with actually So, having big interconnect but and thesis around in think the

Lisa Ellis

Terrific. Thank you.

Jack Dorsey

Thank you.

Operator

next owner Allison, is Kamala Our of question Bamboo. Fybr from

Kamala Allison

having my greatly owner for business of run Square has brick-and-mortar and I'm Online. champion businesses company's products shops. is, for the like wondering Kamala Santa compete And Square a Thanks as up number and variety online small as our helping of Square and move larger market in question Allison, itself solutions, retailer, as mine from of use to is Cruz, Fybr against what retailers? benefited I'm California. including to businesses, mom-and-pop position my Square vision me. Register Square small continues a for a a Hi. And We help

Jack Dorsey

place, is We who This are a What the a first as us. just us were small to for sellers, to sale. exactly lacked they business. opening not Yes. started. more but actually question simple you credit cards, the is started in enabling considering so plastic, as simplest many became the And tools. place. we XX tool, We using accept ago people accept business with the a to found people small it in cards miss Great and [Indiscernible] thank more credit was which micro-sellers, first trusting critical easy not just not really and years reason and

do here grown your with in goal of want a We on proof bounds as we one using So didn't They grown our have actually them us. I a lot large. is system build us to do the points those retailers scales don't used larger that learned business. Square. as is to larger of have how have upper be they've And from tools sellers. with this business. the think And on better. We make the start They've we've and to

we our meant is your everything there's in tools So to is. that scale do ambition whatever to

And We might multi-location, didn't we and larger much a at we handle can that. smaller, of some, this. is look part Square some needs, it's multi-country, business small a what big of deeply be Capital all give much less certainly during PPP came them what way last and out. fair especially transparent doing and when was them and a they really year too needed easier, it making than didn't important and give

We than in $X.X have funding. access more sellers billion XX,XXX PPP

you or ambition. that's like fast. playing your for yours we'll But we have order to in designed definitely and missing here grow every and make and gap, we a helping on wherever know we're feel level you move we're very Seller sales a make us if So field. more to compete let a is please businesses And tool help

Kamala Allison

I appreciate Thank everything you're Well, doing. you. Awesome.

Jack Dorsey

Thank you.

Operator

And Darrin Wolfe your Research. Peller from next is with question

Darrin Peller

bring big like year could the later then how trends we just we're looks when look business, through look But has of you're trends growth, Cash growth comps. last that this just forward seeing then, as But areas a and you guys in especially it some beyond? picking into easier year [Indiscernible] And on even newer you and of the App we growth at seeing on been Seller more up be into more job next underlying Can beyond growthier touch e-com importantly, we this like beyond Seller Great driver And international those and profile international. this. guy. maybe if the or even the and omni your just for Thanks all those pandemic. year, in areas? both going into steam of what

Jack Dorsey

to want go you Amrita, ahead.

Amrita Ahuja

Yes. thanks the Hi Darrin for question.

see markets go-to-market investments. we've payback, in we particular, the seen as Even in that the April that recovery with very investments markets end in first to what of seeing that's these particularly here driven seeing the what markets that we've in in months relatively as we've seen of out growth past with we're of off and total. how really as we're some that that what UK, key lead so profit is certain of growth markets sellers I’ll profit about acquisition now of called and product nearly and the that of growth of seller that X% the between international, traction. the with e-commerce and first continued was that with in between in US sellers by the the quarter the stepped-up QX, the where you of the with in-person quarter we're parity international into drivers payback line really and and up gross again, of the now. on outsized points the key far encouraging. continue gap in US can efficient doing well on the And seeing, as couple periodic of reopenings, we And With make quarter, and real there key broader you between those coming help international, of where strong a some had growth XX% mid-market So through mid-market year-over-year, some few we towards well trending the mix orient in omnichannel international and Australia we're the seeing activity and back see And lockdowns that's we're the is now closing in now in growth pace gross leading and with some

want product a greater parity and sales to to return product why marketing growth than think in spend. in. card-present positive across the services growth we've continued well, even markets to and our as the the lean financial now comes and back omnichannel to software, volumes those on we'll that more an ever, From greater quarter. having international in see we lot the a to with of perspective and continue first I scale That's set again offerings

that business. overall to where And buyers that through the investments platform the and a that the more at also sellers product-specific multiple the of this XX% making comes awareness, from mid-market, in We of needs larger we continue to us. to larger those that our to our We XX% volumes, that's mid-market we complex sales. making continuing want we're GPV the the vertical product, their the channels. that more and Sellers growth in to were over see to in continue we're then ability see year outbound continue Intention across increased and to across with larger reach from and They marketing as well campaigns software in online consistent a even growth XX% marketing really growth growth as enable online and sellers rate past we where this you lean address grew the is know to this for we're the sales outreach the Xx our omnichannel the in first volumes double these source average address continue team from with our marketing over think have, that's card-not-present in sellers. increase see the the volume In than again address quarter, quarter. to at the developer Seller why are And to to of targeted more of will years. quarter, traction here first to investments see perspective, couple importance investments Seller be -- sellers the of growing our

Darrin Peller

helpful. really That's

to again. you the runway see guys good have. Just Thanks

Amrita Ahuja

Thanks, Darrin.

Operator

Our next Suisse. Timothy with Chiodo from is Credit question

Timothy Chiodo

topic. into I'd Cash inflows App Thanks a dig to lot. the like

during little prepared a You the were talking bit about remarks. that

Specifically drive going of clearly you've the payroll well to to other inflows, ways about penetration, be deposit, tactics cards, There course to taking it that. there. increase are how inflows. more some could about important bit as and it direct whether little maybe drive talk bank talk a those one could you transfer, Maybe peer-to-peer of that many drivers of you those the but trading, been they're debit helping beyond

Jack Dorsey

off. kick I'll Yes. us

direct deposit top and for this seen year, team refund season. deposits Cash to priority the a impact remains from meaningful we've App tax pretty So traction

deposit so we So our of it with lot the a visible more we been those has work frictionless as experience making on help recently direct and more much can inflows.

One of foundation in priorities cases top the serve use making our in the is can all XXXX sure our ecosystem.

funding into funds as customers does this a today, to evaluate. those Karma App lot we're on from is So well. new automation support, as greater ecosystem. in customers methods we're our we Several investing Credit compliance big get App continue inflows in allow a infrastructure, was a money also big to to ways. into Cash to an with the in offer This a and focus really one to allowing perspective and going Cash mix tax

Amrita Ahuja

And couple a just of… add let me

Timothy Chiodo

the follow-up A Karma to on quick is which [indiscernible] Credit point. this. very related

Given the strengthening…

Operator

from Christiansen question Pete is from Our Citi. next

Pete Christiansen

Thank you. you existing hoping you. envision realization might Square's Good synergy title. Nice dig I'm should with for Thank more do how what investors investment we evening. guess, early ecosystems? little acquiring with acceleration. efforts Jack, into integration I like Square's brand? the about, think look could the a And How rationale bit

Jack Dorsey

that we and had a audience, of about tools you broaden said, of this. know and I excited We're to super there get set our for build around musicians. And question. an this out great bunch entirely Yes, we questions how work is new artists because

those parallels thesis obviously, everything the but we artist you around that participate what artist artists there's was make tail small we between ton ton we most seller long has some a we there's going want can a go to simple turn in business on had with for want focus the through, map of to you If and -- the within those that a very to artist to we focused emerging they with in to all And this we know really be should going deal tools. a They're that are the first bring And what what not of updates order competition to to critical critical helping to a road good we look We're really learn through. economy, have artist provide into saw and because tools great way XXX-day effort a in a release to we and to very when going the space, more on an at seeing platform streaming emergent. sure tools new has days. of that a in XXX a go and And from a work. like start needs, similar. simple their we're artists

the We our a to largest And largest in service the and the the is handled artists Board, you in are fortunately, new provide tools and that the to largest they the of sellers world entire emergent an flow of sort for the that because focused understand to able been pattern some we But them have build have what artists needs, how the love on a for more that well. we industry, the really giving world the we artist long and back business, their this of experiences expect as base. world, on with seller needs also to and be same and has is within really and deal the us some tail and in artists what worked in understands who have as career. through our to see the

deal. the thesis doing imagine the was see year, work. really fast move And we the I putting with We're out the see. some will that and that we're going that super behind excited the next you to about will So parallels over of we be that same the releases

Pete Christiansen

you. Thank

Operator

from Chiodo Credit And we Timothy have with question Suisse. a

Timothy Chiodo

there. just I it a you. appreciate was Yes, -- Thank I follow-up that. was quick

that that, is the it of strength The mentioning have and direct inflows was you to follow-up cost? Jack, the other little discretionary what deposit So this were inflows Cash of given all call the heavily of offensive be acquisition App App to ecosystem. ways some towards other the skewed in and the relative customer fair spend just spend that, all those to many for assume we the the year brief into nondiscretionary come payroll could Cash about more portions the progress funding a bit in marketing or

Amrita Ahuja

recent know Hey, your kind Tim, I of which encouraging was tax through, March seen on and question, up deposit was Jack of deposit driven your we've deposit, as of before. drug and inflows. in wanted prior since to government was just it putting speaking our to question I deposits around cut and highest in by on that paycheck also with actives lean progress, direct first-time fund number direct got refunds. inflows, being overall growth With off context pick actives our

Although from we that early in benefited the in clearly month March. ramp, very believe they're we've do disbursements government still of this and

other from in of they're these see way, As March. an you inflows, from the direct whether sources much higher, deposit than times as it the higher higher inflow does us which month opportunity sources, by noted, were six give customers direct deposit or we

value. for As of deliberate we adoption, we those to to in see levels part elevated lifetime see in the engagement your question. more us and and as the generally see inflows unlocks ways, the then we opportunity higher second product of business And customers, that invest more engaged

business inflows, peer-to-peer we money transfer. to see do App have to that I make and do to, want an so up in inflow just And Cash opportunity overall. growth clarify multiple here sure App, right? in to is You Cash see lean that into ways continue there into we step But the we the to

or added cash to or one-time the account through from invest at over bank time. it's automatically to direct ARPUs deposit. And broader through a we time have inflows opportunity higher see your see of continue an and You growth that

Timothy Chiodo

for looking Great. Well, back that taking follow-up. thank for thank And you and the so me much you in.

Operator

Rawat is Bernstein. Harshita our And next from question with

Harshita Rawat

question. I about want my Hi. ask Good to for crypto. afternoon. you taking Thank

in on. been You've very involved early Bitcoin from

to interested and also do somewhat We you ago. you a there? more to beyond, play a seeing you. about goal going it's versus potential -- into millennials CBBCs suggesting crypto related majority and now they sell? note, year buy on and crypto, are think And of now a what are Are squares expand significantly looking Thank

Jack Dorsey

Yes.

related is path Cash why as to source to We crypto reminder foundation further a but We since, just to Crypto, lobbying our including much of that And and development is of lot businesses App, can well the to our lot for So, sure the open a Square open around patents on a or want our we us. this with Bitcoin community. have done fundamental COPA, buying as that. selling on as some currency, currency. because around it of and can. via a to the we And so decline native which potential protect what we've source Internet's CTI, business really generally. Bitcoin right for government up that to is work believe native we why started in see lines on so is Internet And as making and fundamental context work realize all a the

year and enabling, this the focus, be It enabling removes should foremost, we our the to world. be on bunch our for around economic going a fully it over first empowerment and us more activity And is So focus, for that believe see friction net this long-term from opportunities you on more the and of towards goal. currency. of to creates Bitcoin a is business,

it's important what on, are and that do the to we on. one think we focus So focused Bitcoin is

Amrita Ahuja

for that quarter Bitcoin, of now that's with for do which in can strongest customer, uniquely in really whether seen very App of we've These in to And we ability have broadly been all we the think more are think you And do that friends customers. saw through with the add, serve you some to that of we new Cash are quarter Boost can each our Bitcoin App that Bitcoin peer-to-peer can last App our our actives was customers to Bitcoin to things us. look intersection acquisition first products the that Bitcoin, Cash part drive of have with awareness multiple gross seamlessly. things you volumes the or that able get the I compounding growth with benefits quarter, that Harshita, growth we now other, there year-over-year. innovations first those us Bitcoin other – the respect per the quarter, saw profit XXx where uniquely product it the here up it's are also we've first the and differentiates each million Cash with $XX It's that when in in would we reason to the at send

Harshita Rawat

Thank Okay. you.

Operator

question next Barclays. Your is El-Assal from with Ramsey

Ramsey El-Assal

Hi. on I Thanks for wanted Tidal. taking question. my up to follow

the in you a on, or services Is and on I view the a guess just understanding that deepen plans the is kind kind for is App. a kind relationship? consumer non-financial the one-off? consumer Tidal into or your bolt-on comment direction other first what's this of this thinking acquiring engagement or drive to Cash So tools in appreciating of exclusive assets App integration can of just to developing of step around content or you're on that for using And Cash artists working like users new

Amrita Ahuja

Yes.

first – our what to the find because answer an in place music and App we I reason is base and Cash forgot intersection when my obviously. culture So between Tidal, such mention looked general we another at just we Tidal in customer see big the in in and

base and we struggling an would about in you engagement that with, more connection this App. to a that might the It's get some merchandise – lot excited can of but other see a year. we ton believe all where you streaming artists think here drive lot super Hopefully, revenue. find make these not around of to we a things. you we there's in do explore have And a those. see of ecosystem very, There's We're to experience opportunity Tidal. obvious it easy. points seller find can So tools inclusive think ones of very and Cash between that and those just our some We and lot you Cash manifest of imagine you'll paid, the of artists broader currently ticketing App

the that the with an an because and the and Cash just experience fan the foremost, App and we're do the incredible to to sure make closer, surface fans is just make that want incredible for to So there's for things sure listening really serving experience as that place of we're bring App. that first, us people the in then first way area, and potential. with Cash that of pair most create to want artists a known and we and lot We doing critical we're to

show made we off year. we're sense to it so as many So this us to connections forward internally. excited on dimensions these go And

Ramsey El-Assal

Good. Thank you.

Operator

And is Josh our Beck from next question with KBCM.

Josh Beck

know to or are the Square Seller about Thank half Square wanted Square. ask new business. It I taking half for you that for to much the for of inflecting. of Sellers Retail so are question. seems products maybe Restaurants and about is adopting the those I new them

a little having of like awareness an us perhaps bit new help just for you unpack accelerated Maybe there. getting are seeing formation? be systems? seem you Do feel the maybe you're displacement to that business like better legacy you So momentum

Amrita Ahuja

as does you would things make And a right take year, -- just into go, that to that not XXXX become back towards found where get open a with We've to of we We have adopt want we'll services, the little sure COVID, reopen retailers well certainly online. We've we them can benefited bit they a and cross a this newer majority easy just of online. in that a technologies to forced a And presses and lot of And legacy because it's mentioned do and last working. of more vertical systems our service We're retailers and were have we to vice slow and they the it go it before, as eyes that be seen want serve to And that. a their retailers the mentioned. now, more certainly and systems button definitely go businesses super now mix And they we to businesses in sales. their possible past we transactions good off-line, they that made restaurants but well. for while think people on away sellers what's that. because lot become reopen, that due tend those as things is business upgrade. displacing food, see fear see to with that bit have versa. of what few online I for as and you from all who agency call allow saw

on a like build we So they're have money have because people not And it than what all. we're They allow that to for well. ecosystem just and the we lend cover We most, can the a can verticals, does trying just think we we focus customer fact not that as where then the much -- seller about all blending do at point-of-sale. say broader would base. I to

We have CRM and built loyalty in.

to We more to less it those have that has we seller App, the make of Cash do the and themselves. the integrations easy,

their business you a is to together hook seller, small seller to a systems have or insane. in large If the do just visit amount of they order

and can attention into it business. focus So that's we one their take people app, just one And We all immediately that real. the put work. website, to growing customers internal on

focus a meaningful competitive can to be friction away continues so that advantage that all on from folks taking us. for So they

Jack Dorsey

which what with used QX, Remember, the about quarter Josh, ways ecosystem. retail is But part $XXX here. awareness business. we half, gross and we came and early partially basis. we able from be why want that's in needs other restaurant complex was time. growth to sellers them more reason continue million, these serve capabilities that here are that's the retail further, in came to We doubled to marketing and with In want to year-over-year But half where and annualized these point, on still to in the over rapid the products increase products were here, think seeing were the still our attract those from in profit from we invest across it's that product. only of the a And who we products can sellers products restaurant scale sellers of other to know portion sales we Jack's and a of had QX, many these products

Josh Beck

you, momentum. nice Really both. sense. makes Thank That

Operator

next Our Bank. question Deutsche is from with Keane Bryan

Bryan Keane

App Wanted I I it thanks a was for growth gross question. guys, tough up remember picked App that from correctly, the XXX% of it think, on. year Cash was April. about taking profit, if my to in last Hi up despite, impressive Cash ask comp

trying to and much. So, potentially XXXX. go think we as growth go about just rate through of App as gross profit Cash Thanks the forward user we business that per

Amrita Ahuja

Happy help out. to Sure.

and them, to transactions impact about App strong up Cash ways power. ability benefit see, right, grew and to So it into year-over-year on where the and you're of insurance up benefits has to tax saw close. last were with know elements credit. and do platform. the XX%, that on in significant a the month-over-month government Cash landscape comes customers' we're have last We basis current we do on programs. But XX% a as we new and utility due our as a program reaching April, may as as two-year the spending program basis month-over-month well obviously, money in last a recent in power approximately underlying we terms we than bill saw child roughly programs CAGR The in here, an in growth many This we bit recent bring customers' trends, the to by of seeing basis, government between When like that both The down business, our that to year. year, fund forward, XXX% on March half growing engagement talked of we've with This ones at which strong all-time credit as elements year to approximately April what March Cash have use in month-over-month still macro back April this March. tax per from a and highs unemployment the most things but be stimulus back so terms in is level the customer then obviously, saw year-over-year, our influenced inflows to on elevated an a around in going inflows spending power well as increase our continue as different in look where different customer disbursements unemployment XX% with of comes amount App, both it example. than spending well prior March in we did look about to moderated inflows with as App our basis, frankly,

the you on customers' the and magnitude drive what that we're be we're suggesting tougher spending Cash normalization And that look our CAGRs elements as their some some to into going go our what term, going power customers for changes the longer but to focused to given to as which of pace course, ultimately, with pointed drives funds don't inflows how App ecosystem. will impact that of on on over a use we that we year-over-year is expect it's inflows, we think to those therefore, then, part the time, know we of engagement, reason is moderation, more again, you fully normalize being the able year-over-year two-year reach customers forward And throughout the see the and comps, basis. So, the would of of to Again, and ultimately. depend out our at year.

Bryan Keane

Great. Congrats on results.

Amrita Ahuja

Thanks.

Operator

next with The is ISI. from Rayna question Kumar Evercore

Rayna Kumar

evening. Good taking for Thanks my question.

rewards on new how particularly engagement number months, to had understand curious Boost of of user. Boost. these I'm profit Boots Over per you've few Bitcoin a the added and have new your gross impact an last rewards, better some

Jack Dorsey

They're pretty incredible.

new and Card the it. reach just Boost of So customers increase utility Cash us helped

First, controllable. instantaneous, about importantly, just more that like not the to a choose but something to Anyone do. app and rare they're it's can whatever for have to very card go whatever fits,

see So if you Boost a Bitcoin or in you're off. might restaurant, XX% a about go to

you're dog lift, might store Boost you some see food, you might to If that. bus that the for a pet in see a getting buy

-- So it. flexible, different the super magic in And different it's and I various and expirations have we that's super, make it lies them. think where want to aspects Boosts to

to it So Cash to this back App. investing, Cash Boost, All an Bitcoin. This we to the and what Card, discovery to these more new Boost what is increase there's aspect continue things build the to provide And a for goes well, see within what new comes network all as up. us. effects is

of So we family see can received from a member they download the doesn't buy see they Bitcoin. app. investing so we it the their on the because who some so people and payment can come that then or buy have They and Bitcoin they may They sell yet, their forth. Bitcoin. and They their friends, can in the have for get - friends app

-- any critical So that have of But features. present where do Seller continue we to have relevant it They those up. the it go want don't Boost and are in have want one in all to things to more else just and moment of really to of is still enable. download and our them to They in from we're that to anywhere apps. consider early people we'll do it. to the don't exciting more runway of to else, we're do a serve anything one They to build And capabilities in to that like trying day, other a fairly be suite pretty app, place the also don't they going ahead terms this services we this it are add audience has ecosystem. and to can look

Rayna Kumar

Thank you. Very helpful.

Operator

Mizuho. question your with is And next Dan from Dolev

Dan Dolev

taking my question. for Hey, Thanks great quarter.

was bit that products the not of whether for product out? expect So a should Can get guys timing very you know I lending there's we talk that in Thank much. can the about are or we sort new a sense coming a beta. been little you them? that of and those

Jack Dorsey

sorry. the first of I'm What your... was part

Dan Dolev

product. The lending

[Indiscernible] Jack Sorry,

Jack Dorsey

with The one with App? the -- Cash

Dan Dolev

payday APR The Yeah, exactly. lending, low product.

Jack Dorsey

yes. yes, Yes,

of a translate Seller, lending individuals. can we lending, the we in and to opportunity obviously, learn we pretty App. lot like benefits this -- sense, see of that it within is from do we Cash everything We and incredible So a we makes to have do if experience, it one lot around a

that it's They like Again, a is, we or that if We $X,XXX with went things just amounts. experimenting bank, buy of new way and one would of sellers with small salon a to the customers $XX,XXX that's a $XX,XXX a of capital small Square not they for much. minimum group too offered worked -- chair. needed to are and currently

approach and Capital. focused Cash the within the And growth that in we – actual we App. served needs. So have Square lending that, And on doing it like needs we really same we're Cash what like the through App, how with actual is the saw massive within are best

question we're we make further decisions concrete nominal as amount, how So and through to as make it working, more trying small payback We feedback still now, understand of and that's to and as out people. the we're running it's it this beta, rates mode we we'll with started those, roll But get we and get more right we'll and deliver and XXX%. to answer. more a

Dan Dolev

Got it.

Amrita Ahuja

the those answer to value of differentiates effects. encourage differentiation, a also it's we road is And you App's in what Dan network about and the standpoint. products ecosystems once App both Cash I feel could unique of various drive higher-level that Cash map from question sometimes intersections multiple maybe App. products our And really and, what's think for case of at just can about would connections Cash unique of consumer between sort

going even independently with intersections some peer-to-peer speaking of key enable Cash those of areas forward, awareness, App we're customers in to boost for foundational network as decline the improvements of and product new the going The that exploration of intersection was launches. sorts are intersections direct of about deposit drives similarly, with the think I drive us both. forward. effects for demographics Cash So earlier reach the of broader call, for making App that will Jack And

specific are product So launches. related be that product that can not vectors there improvements that growth multiple necessarily involve here out to play may

those works of the as in are, So course, well.

Dan Dolev

you. Thank Excellent. stuff. Amazing

Operator

remarks. all questions. call today turn to have that's now the the back I'll company And the over for for time closing we

Jason Lee

we for the in Thank next on our first and will earnings joining call call. you see you quarter XXXX, earning

Operator

conference today. joining call. does Thank conclude for again today's us you This

disconnect. now You may

Block (XYZ) 7 May 212021 Q1 Earnings call transcript