SQ - Earnings call transcript Q2 2021

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Operator

Good day, ladies and gentlemen. Thank you again for your cooperation. Welcome to the Square Second Quarter 2021 Earnings Conference Call. I would now like to turn the call over to your host today, Jason Lee, Head of Investor Relations. Jason?

Jason Lee

everyone. Hi, delay. the for Apologies were just the line. difficulties experiencing technical with conference We quarter joining call planned of for our XXXX discuss acquisition Thanks second Afterpay. Square's will earnings we during which

and Molnar, Co-CEO Co-Founder joining Jack We today. and with call Nick the of Also have is us Amrita on Afterpay. us

on opening from this those results materially be release IR at that of by would Also, will remind our obligation that on planned are law. call like before the the considered some everyone SEC to about to based begin required Actual call. making an as any our to disclaim any Reported in available statements differ results We our website directly that with future look with the factors by contemplated a call the forward-looking our as statements. discussion take call We on could of forward-looking should as will forward-looking to to cause on could differ. statements our statements, results your this except we filings press date. acquisition a remarks information the questions. be note investor not us performance. indication of for We and forward-looking deck Please update this today's

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

comparable metrics Afterpay's Afterpay, may may non-GAAP Also, differ GAAP will a Relations public intended measures for directly measures our shareholder which measures discuss on also the letter These July financial are actual provided Reconciliations results. discuss these from website. substitute result, not in to this our results estimates. GAAP during most a financial be we certain Investor are in the non-GAAP filings. to call. available We are for financial As

a of transaction. accompany slide presentation providing the and call Finally, are available website the our the With will both website. presentation that, An on we of is commentary call like it Jack. on call this our the be our conclusion Relations the shortly conference through over to audio section available and replay I'd after to are Investor turn also being the webcast, to This on call.

Jack Dorsey

for joining Thanks, everyone, us Jason, and thank you, today.

our highlights we sellers. acquire yesterday, their two their have flow now U.S. we quarter. the plans Continuing integrate existing services, of expenses discuss expand Banking now their Square money. access in business Square's like more now to tools financial and options. better from sellers payments owners to get Loans. products, out and Payroll, that core which with like includes help Afterpay, commitment tools called announced balances, of accounts, Square share lending products Square three first Square unified suite of payments, our Square deposit I'd products manage we By savings and will central our for Banking a to two solutions banking financing cash Before to new joining view offering seller seamlessly and Square launched July, This and checking,

of open decentralized to create and permissionless We the which will at also of on goal is announced focus the with new services. making CBD, developer business platform easy name it Its an launch Square. a financial building noncustodial,

plan real to have the has publicly Our public. development playing massive for is them. belief we share all. process our time going level potential that updates to completely focus Bitcoin on to by We're in Bitcoin, our primary to We the field driven make as transparent

want do can on for two younger financial Square, Today shared of merchant having yesterday's simple be and this acquisition for focus what with we purchases adoption seller to opportunity discovery. more serve with App. and integrating This customers to will and even for together empowerment without has helping to free companies we for also method inclusion customers. – to that also later drive to Now pay rapid our Seller one this control is Afterpay combine Afterpay includes uniting ecosystem. financial enable into two among better traditional commerce to driving consumers flexible, new make is an payment both while Cash sources out important strong idea the the Seller businesses gives more and we're for one both a on accelerating amongst complementary day ecosystems. interest important economic both, merchants omnichannel and and combined By individuals a merchants Pay connect announcement. transaction, seller. a part use and our more tool of we for combined service Now that business sales credit Through across consumers. for consumers, connections we App, our Cash a and units, to built is Afterpay and our to while seeing plan to especially largest and and Increasingly, Buy Later and It's responsible stronger demand as taking to sellers

opportunity served and growth with in and huge sides Afterpay XX, for the nearly helps in June other, XX our more consumers of both than XXX,XXX today. rest million like just ecosystem merchants growth one globally of As the

been of on team Afterpay's and businesses, has team. compatibility incredible to focused we've closing, our authentic, process. and turn help we to and as Nick more the upon together, excited have drawn join Seller our Ant Nick conversation integration see bar the and economic Co-Founder merchant entrepreneurial serve start been Afterpay's to you Beyond from well With I'd will can Square's and tell all do I'm around thrilled I'm Every collaboration will the It's and efforts raised what and our the Co-CEOs, we thoughtful Afterpay's Square like vision. strong together. Ant, that of an respective flowed and and over teams, build founder-led about Afterpay. visionary App on Cash lead call can to to shared conversations ideas what our and consumer effortlessly Nick part witness to how empowerment. that, built

Nick Molnar

to of Afterpayers It's XXX,XXX Eisen, our increased my an and absolute only and time my of incredible very Hi, go to much, spend crossed years to our today product sat responsibly business could be them service opportunity fiscal been way the announce that our in doubling this U.S. I'm debt, with pleasure or recent who fees. to ending more journey and merchants on a partnership revolve to loyal interest to our in without nearly year have the few six-odd together. love year-on-year, through toast retail who ago, notwithstanding we generation, the than challenges It's you XXXX past of payments years table since, see base much over what of the proud the empower network a thankful on as around a so building back Jack. have and is been our achieved come well-being an be on down today everyone. Co-CEO, in and veggie improve focused of for more of to just couldn't long so here come. admirers Square parallel know ways that I having Ant in yesterday's some the creating We've here announcement, and far, kitchen we've Thank financial and businesses in entrepreneurs to that many of more I'm privilege alike. lived next the had his Anthony discuss who economy. phase because incredible Co-Founder journey. and how team mutton global so day the in there families empowerment the next or journeys every consumers and financial me

passionate other abundantly financial they Now their money to with As scale our each impact were we've value empower shape I know global out an own businesses, that to our Afterpay of what across seen chance the shared globe buy the then, that Gen space. consumers an wanted looking clear partnership. will the developing neighbors purpose, to the become at to drive traditional global our start incremental my to started and excitement and responsibly Afterpay the and products. and knowing to Z I a traditional leader were many come. has better, in credit, opportunity gotten Both we're We to about Pay the Later share of to firsthand met alternative amazing millennial consumers team an Sydney. Having finance it's and having know for credit And and crisis enthusiasm and merchants. alternative and in way we Since in by products Ant of our synergies as Buy the the of a saw

its on model merchants credit traditional significant the to consumers. to flipped both and value have We head drive

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trust. based is model on Our

more They our than truly to limit And repayment retailers deep behavior. are top businesses, with grow platform. XX% have share this You our their of times brand. we and they XX they're pay differentiates time in good in power and with XXXX. a the our spending times Afterpay the or a to enterprise that help shows Afterpay for many with – It's whether use business. frequency of small On consumers and XX lower reflects and consumers us start over merchants, to in which across and purchases used increases truly year financial that consumers our Australia partner Afterpay large U.S. frequently their product globally medium-sized average, products loyalty and affinity verticals. and

our greater our XX values, Above and drove payment FY customer average on in repeat often have after marketing global the driven value per of X highly basket average valuable core the XX who proposition, hours the higher of consumer. acquisition million and this and within customers XXXX, for or key in We day new sizes going order additional live. next-generation leads channel attracting Afterpay retailers over

know become And every know brilliant and team of what's better, both focused combined well-being. how and financial in our I have greater continue a way we've we building do but companies bringing By economic the As we shares conversation, is think, great of to equation with way intent of Square, save are thing can not and we to the better the on been to that sides commitment. our In our our platform business, that is share people strength everyone together so just both to with outcomes. Ant this leverage the clear gotten connect mission. business we in aligned creating for almost breathe Square spend, our live the

success. greater there As we which our ways look forward, are number can of even in shared achieve a businesses and

highly sellers to to These very geographies. segments, are and and the run Gen are enterprise Likewise, further and company in-store base the as million their of of offered and really and can product the our complementary opportunity expand a seamless annual for across retail growth value Cash banking opportunity our Afterpay drive today. the us. in-person of number businesses. together online our Square of The Yesterday's the across businesses than products, medium complementary maximize opportunity combination incredible vision. Our growth start shared combined phase services, for online opportunity App marks be believe the strongly retail complementary upmarket an marketing consumer and partners we transaction the Both Square and to and can to commerce. millennials compelling the very to at the more and that in shareholders customers resonates with We channels that unlock look bases and increasingly financial XX merchant with in and merchants global increase and we aligned lifestyles, offerings, the confident are of for excited small, innovative categories introduce will and and our consumers, grow growing we're technology Square our future This next to can views businesses strength provides announcement and Z businesses, active an both with wider expertise. the our of consumers with business. preferences omnichannel will use business. reach Afterpay experiences, of and the familiar millions participate to And am consumers their we I a our to sellers whose

the the the exposure I still the Afterpay to creation and and Importantly, our Australian efforts Square through efforts. respective conversation will and combined maintain Square you Ant owning shareholders see I opportunity. and now wait to where Thank over a to of I part value App company join transaction to growth lead completion able seeing upon two know and shares incredibly with Square picking Amrita. to the combined to Cash entrepreneurs Afterpay's both up And team team this. be and as take are Aussie or for the excited of merchant can't consumer Square of CDIs. Seller we help

Amrita Ahuja

see Thanks, companies. strength proposed merchants believe three secular this opportunity the Now itself Afterpay third, product a shifts among as regarding is leader has Pay and a cover Afterpay Afterpay Later growth consumer Nick. distinguished transformative acquisition: with the of category topics to and well in and for merchants that together. for positioned ecosystems; consumers. First, opportunity combined I'd we propound our Buy is We complementary the second, the a are And of the there our business; aspects like

Afterpay greater last We terms continued First, two up of in growth Xx over Afterpay's with of terms adjacencies. Pay growth help deliver number revenue in e-commerce; adoption in to enabled see and first, Afterpay, years. second, levers drive of growth Later Buy Now future remarkable growth has the for consumer secular and of approximately ongoing to a merchant

and business growing paybacks mirror Afterpay foundation and with and durable economics, and the for purchase acquisition Cash retention growth merchants strong time its on App and around delivered dynamics over GMV across returns frequency ecosystem has a positive providing returns. our fundamentals strong consumer spend. base. increased Second, in These Seller engagement Afterpay's strong cohort has

base, integrating our App into Cash Afterpay our build by and customer each expand we ecosystem, connections. Next, directly By we're can and brand's Seller cross-sell other’s opportunities. strengthen compelling products each excited

On have demographic who merchant complementary XX more consumers the Afterpay Xx the Afterpay's addition base. commerce a consumer to base have embeds access will of access consumers App side, App. Afterpay into to directly and will more Cash represent million Cash

in-person Later Sellers Afterpay's Now verticals Square On the Buy the introduce merchant commerce. which in side, new to Afterpay and deeply we'll expands Pay offering, more

was growth the only transaction after acquire first Turning Square behind deal. to of profitable unlock to compounding growth the aligns including With gross ratio growth year of Under own. financial strongly in we of Afterpay each business the from the similarly CAGR future receive younger of expect about profit App a benefit strong XX% in We have or a million, subject stock-based a fixed for will of million. both excited monthly of performance Afterpay XX% the the profit transaction adjusted from in in be Afterpay the quarter and shareholders from in a months improvement in second will each actives company. year-over-year, of June our a the App A which profit Square we add. $XXX a increase basis, your after meaningful Growth believe questions. in shareholders overview which now the June terms and engaged of We're of see $XX financial was impact the to quarter XXXX, participate basis. as of the so close second Historically, XX over significant both long-term quarter $X.XX ended profitable income benefited closing our transacting of closing. and gross regulatory of EBITDA of XX% two-year opportunity time. impact and being base ecosystems on growth first Square last growing X.XXX public invest Afterpay where a customers. annual customary XX, gross slight pandemic growth Cash we accretive billion, year-over-year gross figure cohort strongest upside Square Taking to the ramping companies. our and share or expected Cash on but the compound at an return in for combination economics with nearly to ecosystem. EBITDA also the expect Afterpay its brief approximately for is of helps an shares quarterly to not this quarter. normalize consideration an a XX%, gross of two-thirds actives a was $XXX of earlier growth of margins they profit On our stock quarter the Afterpay's adjusted to an synergies decrease approval this million customers increase provide of for ended modest In million generated two-year investments first increase take enables The profitability, I'll agreement, Afterpay billion delivered Class by our shareholders the was of results, quarter, XXXX monthly We $XXX incentives company. course, is to common look Afterpay year-over-year with will results profit increase seen we intend strong weekly in rate, We actives, our the the we've driven and first ahead. of behind opportunity. of in CAGR conditions, Net before year growth. the the Square's to will ordinary exchange XXX% And approval Afterpay US$XX management's closing. engagement

annualized years in inflows. actives, in by quarter, quarters We monthly from which $XX ago, ago a a profit gross third from increase the also growth significant driven was saw two per and up second primarily two in up X.Xx

or CAGR Now increase on $XXX million, to profit which two-year basis. year-over-year of an Seller XX% XX% of business, our a generated gross

quarter. second and Even during to quarter, recovery card-present in nearly as strong, a the continued has we the GPV channels in remain online from volumes strong saw reopenings XX% regional growing

of sellers. quarter, in to GPV representing also mid-market same continue XXXX, one-third the from doubled seller the GPV. with period second make more growth than We total progress larger In driving

both in to for ecosystems Next, share trends July. we wanted

profit App, quarter, XXX% CAGR from Cash XX% this growth this of in XXX% region. to basis, And Cash in GPV have and more to we than the For App year-over-year. may trends. gross growth year. continued first is of a XX% on toughest quarters continue quarter. moderation we two-year XX%, normalize expect expect comp on spending future our by of year-over-year profit and in a approximately depending two-year we App roughly or power than Remember, two-year Cash the XX% for with vary for gross greater CAGR a basis of growth Seller, saw in line July some Seller consumer CAGR how second On the trends year-over-year

Although has the the materially of cases haven't could affect performance. to regional seen rising we COVID track experienced certain further particularly U.S., outside business impact world through continue July. we in overall GPV and regions, our it real-time, this We'll restrictions recognize trends

investment now billion very for summary, seen that I'll communities. Finally, in the We Cash growth excluding Seller second on in at and investments With of focusing that, and the of over investment opportunities non-GAAP more in consumer ecosystems of momentum – ultimately connections but half returns in our In the together ecosystems, we in profit on in to of $X.X it encouraging XXXX, are questions. we're not between the serve first back invest Afterpay we've and our meaningful to believe turn trends is ahead, our the make with XX% XXXX on intend excited operating them. have we by our only billion lie where first midpoint. growth, merchant on to opportunities gross strong the loss, also can of we profitability XXXX, integrating to increase across risk that App we year-over-year momentum about half an to investments Across year. incremental half the expenses, which the expect $X.X XXXX, we in the

Operator

Lisa, [Operator Instructions] you. open Thank your line. please

open. is line Your

Lisa Ellis

capabilities that thanks specifically Square you Terrific. just Thank me? or you to for versus question. BNPL taking Afterpay players has Thank built alternative you. you decide And number is you. doing lot factors in-house. organic and investment? led a talk my There's for of best Can Square of historically about globally, Can also BNPL successful Congratulations. fit what the hear players a

Jack Dorsey

Lisa. Thanks, absolutely. Yes,

they've really ambitious crowded. in you early I a how that is this what And and were solutions of as and lot mentioned, Nick on there's built out extremely it been space, and is started mean, raise there. services getting the they different entrepreneurial what innovative have and define help space more bar with of everyone obviously, doing. lot a So and this We more else and and Ant

impressed are by the probably we by So the entrepreneurship. ambition, vision, their

sure big on that to out, clear for And biggest I and two Cash think talked the App. this marketing simple – they was their our in how tool a built connect ecosystems, way call thing this other Seller incredible for a a it is some making model consumers. we've fit to about discovery lot a us that and

products offers don't Pay truly interest-free allows Buy require this access something So responsibly. broader with them history, Later other lot from for any more to helping different we've vastly products. consumers, Afterpay that Now a seen while what credit spend And consumers

can way purpose and asked which Afterpay asking, to helped customers. repeat And improve them and towards providing was merchants, conversion that question, sizes of Afterpay sales. purchases increase them repeat has leads has merchants app, has to rates, help the their we through goes economic And the that Square exactly the transaction question how that generate more been a led So our make impairment. for our always

and Afterpay globally. So million reach to XXX,XXX consumers more XX allowed merchants this than

an saw built model looking we're have us. model. connection even And just of Cash the stronger the companies. as So on the Seller that we – fit There's deal, innovative perfect for move our a they is into ambitious. creative both this was makes incredible, it for a and an ecosystem and And team built obvious Nick top and between clear this at Ant App.

Amrita Ahuja

that impressed demonstrated. well. really Afterpay business been We've Lisa, with to strong the that add fundamentals I'd And as has

on with from New transacting of transact both and growing some the what more older the year. the cohorts Zealand at is and year see And look that frequently the cohort Australia cohort each here we economics times of course, we economics. growth platform XX Of onboarding, amongst After customers they're per combination engagement in consumers.

Cash international Afterpay regions, an quickly has the grow We at this that date. the alignment fastest-growing which shown also team U.S., – to executed Seller has expand Buy Afterpay's help help market Later look the and ecosystems can and with And to the of small-and its in has Afterpay and Pay existing we ability to including medium-sized App where expansion additional demonstrated. in-person strategic can been strengthen product verticals. in then new priorities help Now businesses and our

with metrics that So we've lead Afterpay demonstrated has the with and merchants a day, foundation to per together or healthy these volume both size Afterpay seller. for done X transaction we build Nick whether merchants, can on million in leads purchase and as – demonstrated cash that XX% frequency it's stats conversion as across generation XX% accelerate which are as ecosystem in rates these uplift in the uplift well said, growth they've and of

Lisa Ellis

congrats Thank you, and again.

Operator

you. Thank

line Our next open. go please question your JPMorgan. Tien, from comes ahead, from is Tien-Tsin Huang

Tien-Tsin Huang

on congrats and synergies deal the think here. about. lot of much, to so A definitely Thanks

you things. will long then Nick, deals, the I'm have you, are founders could just about if the about a good So on top – here. the I the what about. stay hoping same from standpoint, curious was to we're Thanks. on perspective rank thing synergies And how you integration you Afterpay on most thinking excited excited synergy you're to what get from Jack, your maybe Nick, call.

Nick Molnar

Yes, Thanks, you. Tien-Tsin. absolutely. hear Nice to from

accelerate long-term and particularly us priorities So our of U.S. from an growth the Square helps perspective, absolutely in Afterpay

help drive sides both beyond equation, a more primarily can business diverse retail of verticals think set us retail Square the Seller just of you where we're of orientated. If

one focus how So when the annual of commerce serving both into consumer equation that on allows equation, ecosystem SMB broad the consumers of to of merchant side And XX in-person App up And side customer transacting we think drive Cash million. cash us retailers. our to you for highly into help of really the a our the then product base and of have for merchant and value sellers brings side. that engaged us lean is millions on expand the critical to further about us

result day as So before, million over mentioned on XX as annual per average of delivered million months. Amrita Afterpay a X last consumers active XX the leads

a as have to able larger like the was conversations Ant we be But can behalf. has his I firmly believe progress. the let second we me and consumer to increased myself, and our And Ant that culture been as beyond Square value I just and can't into the that's think take significantly excited what increasingly So excited as to vision, other. question partnership alignment started speaking the whole App know imminently significantly the retailers a Alyssa We're hope base, testament today we team, Brian, of mission, a to just the just really do on to Amrita, the we've apparent drive this each Cash And we future. got to day just Jack, more partner and today. organization. long values we on wait

Jack Dorsey

in said you as about And time from not We been are of Seller from fuel and our obvious neighborhood shops to that think ecosystem the scale question in ways smallest up to also the and to that we largest to lot sales people last our think more retailers includes to be the enterprise more exactly a is the the solution help to point for the continue most the strategy, get your this one are world able ecosystem. in in our thinking answer, that massive yet obvious. help And from also on I is gives larger, some side, have with And one to of able reach brings this that we this I like is us seller the perspective, call, a serve another my all what Cash is in the connecting rest ecosystem the us sellers. of expand global to us and all to a that. retail And App drive seller sellers this and past. tool

Cash capability. this On is a new side, payment App the

and with interacting discovery, they Cash App a capabilities customers the economy something open every choice they're to that of side foremost, Cash be Cash App lot new provide more want going adding up as way App to how that to incredible. the focused ecosystem well. consumer more people to with But single on see daily that services So entire given also is the give have can will to is and pretty a our to on a check first value, out within what's day

company these again, lot together, But of strong connected, we power but long true – connection get App, ahead. think of the a weren't bigger together, Seller between than the and all starting I of over Cash ecosystems. and value these you they years systems if goes two is combine it have how So you our ecosystem. strength we with term ecosystems But each a these obviously even the that all for connect

Tien-Tsin Huang

Yes. again. Grateful the comments. for Congrats

Operator

Thank you very much.

Peller line comes ahead, your go from Our question next Darrin is open. please Wolfe from Research. Darrin,

Darrin Peller

All Congrats right. this. Thanks guys. on

of together, Afterpay's every just on, Cash and You integration made probably higher, think and every the is what users think. clearly look I when getting pretty of outperformed the a, has; and we engagement more it App profit, comments per if that a, what that at you really transacting it? incremental what App was as the driving week. more to actually can that consider you gross mean. even now envision two. you and touch can two-thirds When between Cash Afterpay then clear could of at levels how to much Can just, you then importantly, with user you that combination room it what's side; Afterpay, revenue and timing opportunities engagement the the for means we work integrate engagement with the around on ahead touch on And get two done

Amrita Ahuja

Darrin. now nearly more and monthly about that this I'll App use over also on and that time with time. start adoption This turn, XX up drive the again, Now sharing purchase actives interest million to added App two consumer adopts further Cash – App's compelling Weekly two-thirds benefits and has quarters us average installments this of browse average per Cash tool, as it we the kick in or speaking be strong engagement is the App drive into scale each to product marketing a a as Gross driving active about providing Buy used Card compared actives really at exhibited steadily from acquisition as extension a growing monetization tool pay XX at consumers App checkout, quarter Afterpay's Obviously, merchants X with times of week ago. we one. additional Boost times X.X bit we've will Cash a can that features functionality the June. App believe to weekly X from monthly seen and that extension what Cash recurring has opportunity App, and in generates that Later was Thanks, seen off customer be have enterprise lead products integration and currently increasing years daily what actives and ago Afterpay. from at this transacting seen goods who with inflows more the perspective, that spending to Cash that customer have a perspective, two App allowing in two could form the integrating Pay with profit as to in directly Cash that merchant spending services while growing as for that increased represents of the a an pre- and just us. I the average million engagement. weekly is Cash we've increased. on for current utility From with App customer. rewards increased App And in ecosystem see App from able that generation. of to spend that engagement share products our times And a percent for merchants, per and our actives consumer Cash customers. Cash with is monthly utility Jack discovery gross engagement and natural means – rewards. Cash over we've up using the from or we've perspective, X.X Historically, natural engagement with actives within then adoption engagement of in in around customers we've Cash also monthly that This – has, driven peer-to-peer more X and to, profit And on March million means Afterpay the commerce seen that merchants was has

for customers So us and lifetime ultimately App of greater integration drive over time. to for into and we value Cash the in see ARPU greater potential the our Afterpay utility

Operator

question? that move Thank the question. Darrin, next answer does on we’ll your you. to Okay,

ahead. from please comes from question next go Timothy Suisse. Credit Our Chiodo Timothy,

Timothy Chiodo

those taking area the and you the lot but the opportunities, type remarks just so slides and synergy merchants last that to little the road prepared bring might dig we want most with to aspects night, – a or opportunity Maybe Thanks seller – bit what of more, what an ecosystem Great. for Afterpay. question. little that around appealing in look highlighted to that times might to life in a letter introduce the larger also ecosystem a could what I be the in like? work the few a Square the larger the of map that bit

Jack Dorsey

and the This the off can gets for more Tim. merchants because the of obviously expand excited types offer we better the of really products we us our is ecosystem sizes Thanks what that question, boundaries merchants our area can what of an Yes. is. to,

a billion we Today has than to across of sites, millions presence global merchants large e-commerce of, and interest Afterpay have provide more and my business. in larger said the retail and volumes to around with sellers restaurants, seller quickly. $XX volumes pickup of Afterpay access a things spread expand move a billion in-person enterprise can omnichannel omnichannel previous So delivery, with seeds there's to to today $XX small in and as in growing where presence, help number can answer, But commerce. I in-person

to rest around features can be a our specific our feature and from that of want allows of our to a largest. make scale open that the products And we big our of all service we and seller that services, making to our very all of sure to door the part smallest that is sure them, of the strategy have ecosystem. and ecosystem our thesis but may the So hire. to And products it the

to it for. into us matter have to sure offer they're how they they make came one that else that multiple the they So come want in. We not hiring for they the see in, jobs, just doesn't system do once come everything – we and that

play we in matters this Cash we a consumer gives to retail sell them just the – ecosystem have as global And past. larger merchants introduce way haven't again, had similar the with on we greater but a So that larger the the seller is in App, side, can side to to because why well. on tool us enterprise, that a

Timothy Chiodo

Excellent. Thank you, Jack.

Jack Dorsey

Thank you.

Operator

Thank you.

Bryan next Keane Bryan, Bank. Our ahead. please Deutsche question comes from from go

Bryan Keane

Hi as from guys, there's deal Thinking sector, entering BNPL congrats and about lots on players this of large me the Amex Apple. well. attractive this space, PayPal, even

So see rate how just competition, that sure further versus competition the make and take we does don't differentiate the down? pushing solution industry, Afterpay/Square overall Thanks. in

Jack Dorsey

can start I this. with

where ecosystem foremost, charging. combined we believe and differentiated first our think, is we're most I ecosystem,

they lot even business at even or the also seller a of entire it building the a lot the Buy is well. come of we different the very, spend consumer rest And Pay of retailers and more enterprise seller larger ability So very to with while but don't it's time. And seems for of because the important are They for as connecting that's the the saves them both having a focus magical ecosystem see They ecosystem, need have lot Now have in business. market, it the look together. magical. companies, run with pretty can vendors to few suite a there a you competitors And for global just the to as companies, time but a tools together. of smaller on entirely for it's critical Later

and So we can sides fundamental model them focused our both the this strategy seamless, connect together. scale more the the for as well. two merchants, also we at customers we both speak on the Maybe can together of principle this to our can create is ecosystems and for And Nick have the serving well. to as be value for more for our company really individuals,

Nick Molnar

Yes, we've retailer. looking my value by Look, providing absolutely. at of we years over drive the – the Thanks, through lens perspective, differentiated can ourselves what Jack. the or it from to

we ability payment value has a rates. value, platform, lower lot And increased to delivers retailers conversion see in directly. low to a there successfully platform, aren't actually on payment of retailers just to before, million business business through drive performance our can their as providers per course how platform act retailers the and acquisition Can So rates, we we that us that but add not But undercurrent just the – And our return them? XX drive assess retailers. in order retailer customer last the sending core the is, of of I built leads X value core over mentioned have average, really day the months drive the to perform can rates, our here that a not actually platform? and new shows naturally, new for the payment as business it increased channel return higher average to business

and I our able the value that, about million result we've with existing achieve think XX ecosystem to I XX annual of result reaching what we to annual Cash consumers, demonstrably ability perform. a of results can when a active active able customers that that to unfolds the App as as that the So strong the drive is greater to million been we've couple than believe, retailers, been

it So that really our from side. about perspective excited on

Bryan Keane

much. Got it. Very so helpful. Thanks

Operator

very you much. Thank

Barclays. your from go comes El-Assal question next Ramsey, from line Our Ramsey is open. ahead, Please

Ramsey El-Assal

for taking to for build around I Square, may how to out where – strategy already Square isn't? you appreciated. about expect Afterpay Any Hi, presence of products kind Square Can strategy. Square be and maybe question. we thanks market wanted where Afterpay where broader be would color my international operating example, international markets for the ask maybe a advances global

Amrita Ahuja

Australia, are U.S. growth but outside Zealand on the have the levels in launching Seller, and The U.S. smaller payback add gap. now markets, App France seeing geographic in but Thanks most as been U.S. are with we the U.S. App global GPV existing has at achieving Afterpay that, vast launches potentially potentially you in Italy. as well. off both Maybe we're We're markets the in growing We markets. growth that of can And into recently Spain, Sellers with pathway and driven expand and, rates New see the closing in in. new We're in and for priority, us you seller presence has for question, as Cash new as those and know, UK exist growing for we and presence that we're expansion grown entry of a recent product markets. across the Sure. Afterpay Europe, consumer kick close to those markets majority for markets see complementary Xx in parity Ramsey. strong with Ireland and well top more Global markets. I presence its Nick investment. today, presence markets U.S. Canada Afterpay. and our already And recently, has Cash the France as across can a easier beta and where on as already from new these help well allows and merchant and

geographies profound our in footprint offering and where as both opportunity as whether customers globally. is combined And expertise expansion Afterpay's that product new So well and geographies acquire new together think to our when together. enable can further present we're strengthen you

Nick Molnar

perspective, And been then, global an from Afterpay Amrita, expansion if I focused can well. add, on we've as

now global base on basis. that from geo us America and the strong focus for years been just we're any core has the an for particularly our very global ago, ability a our go in enterprise country three XXXX. U.S. your from to fastest-growing And retail mentioned a the launching growth volume region seeing Jack As been largest perspective consumer earlier, represents The us. North Since retailers strength and FY in in U.S. in it's with

existing a seller been more we Afterpay, reach to And we today, equation. strategic a we which have few more join Square announced the App we where why combination the So in to investment the geographies. times, U.S., sorry, Cash App with of Cash – spoken two of such the help about leverage which doesn't and we can sides provides I Money see is focus similarly, opportunity product as help I've want and to the exist in experiencing launch this App Cash recently geos by think,

about So new to and together, I believe learn there's a here explore geographies. long-term opportunity

Ramsey El-Assal

much. Great. Thanks so

Operator

Thank you.

Our America. comes Jason from from Kupferberg next question ahead. Bank of go please Jason,

Jason Kupferberg

as latter cons options, entering that opposed innovation. obviously buying up by you follow wondering for Great. specifically BNPL you guys. actively organic of and talk can to if maybe a color here. of the considered and you the Thanks space may on legacy the all I buy Good considered morning, building. if the earlier more about the to just have I'm versus wanted strong question pros about build, Square and has

Jack Dorsey

bunch our our terms into in all sizes a the and that expanding much achieves It reach. us connection was current to us ecosystem just of goals strategy. obvious that of And before of much allows strong complements even us. there types faster, mean it and and our move merchants have back considering in options and they team early how were been and the we how they've Nick it we an can is their and I came to in Ant we're the the this particular really But Yes. and always how ambition innovative how case, made space stronger.

of start to bar to stronger into were of just out get by wisdom, can much, leaders from not I as to we understanding able future going a route. on two lot we're move if the but much scratch. build we on where that will incredible a the our of a continue faster to customer well And us this the rest So up we of we have just do. a to get set much knowledge, for And Afterpay, lot think continue and company business lot what opinion raise

Nick Molnar

certainly the can days the X% Buy e-comm a of add perspective. I Now being spend. an less overall penetration Pay at Afterpay early card We're Jack, for maybe Later of And credit from and even

of one companies strong Jack mission apparent. as look conversation, from teams. our objectives thing the our and the So on that and empowerment values, teams combination And have during to long-term discovered inclusion. the an mentioned inclusion our was our economic my and breathe But what like. alignment vision your with of leadership between incredibly financial of live and clear paper just of each financial and mission incredibly our Ant we've perspective, aligns It’s way

mission vision we're in about combined we look, And combination yes, long-term shared today. see and this excited huge accelerating, announcement So opportunity growth. our and our

really is exciting for think, of both shareholders I this companies.

Jason Kupferberg

Nick. Thanks, Jack. Thanks,

Operator

today, team you. hand over closing to questions Many time we'll the so for Thank I'll back the thanks. remarks. the taking any That's be for management

Jason Lee

quarter joining Thank this our second concludes earnings you, everyone, for call. And you. Thank call. that

Operator

today. call the lovely day. of Have joining for all you a Thank your rest

may now lines. You your disconnect

Block (SQ) 5 Aug 212021 Q2 Earnings call transcript