SQ - Earnings call transcript Q3 2021

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Operator

Good day, ladies and gentlemen and welcome to the Square Third Quarter 2021 Earnings Conference Call. I would now like to turn the call over to your host, Nikhil Dixit, Head of Investor Relations. Please go ahead.

Nikhil Dixit

Hi, everyone. Thanks for joining our third quarter 2021 earnings call.

Amrita today. and Jack have with us We

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

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

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

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

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

Jack Dorsey

existing efforts build and our you time ecosystem, omnichannel we all to seller those today. sellers have market. to while retain grow attract your our and enabled helping continue our upon larger Thank sellers our for us capability In also

enhanced quarter, person, sellers we build phone. enables for our help more or a to get quickly, third In new more in sellers over product Plus, efficiently with we their product Square the designed This the introduced and Square run square invoices to paid easily online clients businesses. complex advanced features business. invoices and larger more Invoices subscription quarter,

they stack online Reader businesses September,, integrated it's robust to We and contactless France also continue For usage and customers Point App. we quarter launch in Switching for more. the protections and demographic families world. hope in deposit teams and this lowering XX money in cashless excited reach, expanding and the now, relevant Cash of given to million new of in Sale, the sell With expand App, place. financial card, its By to Square the environment, increased barrier, the the allowance, Terminal, products, approval. in earn all to participate the and most especially to payments XX system cash We're help they Square launching growing including the the US which access with strong guardian transacting to Stand, access sector. Online, and some offerings in is With Square full and PXP or chores Restaurants, network, in Square between reached by Apps, Cash Cash Cash their serving massive can eCommerce person to seller now to tools our with about jobs Square expand entirely from to in parental business increasingly families need our of French manage this Square yet. about launch as the in tools teams of in equip can small with XX App, France geographic Square's how US a fast get the them in milestone the appropriate integrated with market direct physical less with cash learn economy, age digital our major ages important we suite becomes teams boost,

mobile App online method we've their in as pay quarter, can Square third App Cash for account individuals a in connect the our contactless about, talked especially QR Cash seamlessly of they're button US App using and As In tapping ecosystems Cash our in a person model, as string checkout. pay pay code, launch the transactions ecosystem with flies we our new together. sellers device with on their the payment

App they into As both pay Cash feature expands sellers a where commerce are and become become has Square enables commerce by App App's This have integration to bring innovative helps options customers requested capabilities, more payment top to ours for customer. App providing us further offer their meet to and mainstream Cash sellers. new more us and their pay also Cash life customers a options. flexibility contactless way in Cash

serve purpose we existing build want to we beyond empowerment that continue opportunities to to economic but we on ecosystems of our to our strength do, Lastly, that serve new and explore all markets.

are behind who initiatives emerging few a into investing have We XXXX.

new tools additions. we're the acquisition artists, building starting of For with with example, for TIDAL,

while Bitcoin to sole focused all same wallet, over and build I'll We our of Bitcoin Amrita. the questions paper created services plan with We long detailed we'll mainstream two open with order on to share the and financial system, a strengthening focus later in well, making Bitcoin developer are with Bitcoin. of more network ecosystem. of month. on white at to it over decisions, an plans community, the collaboration to this progress a TBD And way. opportunities goal the turn that reach Bitcoin time, initiatives platform helping as from a announced the and be open We each the years. a these term mining sharing with see along We both audience build recently consumer hardware in We'll permissionless business both non-custodial create with also a decentralized in learning and multiple it a called that, easy

Amrita Ahuja

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

on a at update second, the quarter in October First, performance In third, the was basis. look profit profit an of of quarter of Adjusted $X.XX our where ecosystems out A we XX% during and billion, year fourth year of quarter, the XXXX, fundamentals our XXXX; basis. CAGR opportunities and App million at App of generated on CAGR an to or year-over-year Both showed and quarter. and a Seller call here. year third increase $XXX over growth XX% gross on in Seller a growth strong gross drivers two look in to in compelling XX% Cash a Cash seller XX% million. invest was ahead. intend $XXX XXXX or given year few EBITDA the two the third

of growing make basis up overall as more year made up GPV. annualized segment has resonated strides mid-market profit, with the we've two a GPV, micro are In sellers seller million First grew have those fast market than our CAGR ecosystem gross in with larger and surpassed business sellers. quarter, $X.X nearly largest our our as on as sellers third twice

our sellers, by our momentum acquisition help larger platform. Our well recent as as been sellers grow with has to small driven mid-market of ability on in quarters sellers

a basis million seller sellers attach integrated Second, remain ended. In profit third achieved actives. product in the processing, as invoices as adoption rate gross the Square a of an basis and ecosystem ecosystem, basis approximately quarter, government even products active billion up $XXX XX% in card experienced money year generated breadth on the cash fastest or inflows XX% CAGR up each CAGR disbursement we the non-cash inflows Product growing into strong on nearly value for years to of continue month growth in strong been year two-year our gross cash App over using has engagement see overall on than profit ago. key inflows, payments in with cards. of software in the increase inflows, last particular growth Cash and programs brought our $XX or ecosystem, XXX% two a XX GPV months two XX from year card most a driver more in pulled strong

we've deposits also and direct We more in customers. paycheck an transfers deposit easier visible bank to made and as saw increase

share to on real our wanted an we update through Next, business time. seeing we're October what and

year believe we two our underlying reminder, trends will CAGRs better in business. a As reflect

For could which growth Fellow in Seller, we in US GPV parts over from we relatively a quarters been basis expect year basis. We've in and COVID by or up gross XX% there few GPV CAGR past year certain encouraged recognize a stable profit the relatively the with growth CAGR two on trends. in of though, October international quarter. on XX% are our still to markets, grow line third XX% two impacts approximately was year rates in by year impact

October, profit CAGR gross For growth two we XX% greater XX% Cash expect year in of greater over or a year year basis. on than App than

In expected, as view basis, been through loss the the quarter our ended. and the of year brings strong October has the of focus risk excluding CAGR year broader and gross from investments compared me fourth for around third by here government had quarter. range disbursements a XX% million engagement we recent $XXX which are we in to ecosystem October. We've expenses, growth normalization XXXX. we about launches our of increase two-year to the As approximately fourth and July expect non-GAAP quarter, intended the seen August gross from saw roadmap, to relatively our product enthusiastic over profit On for across areas our preliminary XXXX profit operating to products stable

and opportunities profitable to growth. investment term XXXX, across driving significant we see focused remain long business on our Looking

expenses expect This to drive incremental team, expect in to We're each pay, acquisition our we by to billion build figure approximately out after quarter of across impacts XX% non-GAAP sales to marketing excludes first we and from $X.X of XXXX. in which spend over and our XXXX. ecosystems. expand Next to year, the G&A close to operating of year compared support grow product year approximately development

at where Let's our take a focused, focusing investment. where look we're we're

omnichannel, investing Seller. strategic with be priorities of enabling we'll up globally growing and Seller, larger market behind For growing our

quarter and mix and profit more comfortable, in teams. the sales brand lengthening that payback sales business up market six marketing awareness investments as seen time our the to to we growth increase strong gross scale lifetime Given of seller international, value and over per across our we've and go and periods range our our customer

and Cash priorities ecosystem. For network, strengthening emerging priorities attracting we're XXXX, our these areas. our engagement into our investing and advancing on by remain inflows new behind focused more product strategic into driving App, Heading

of pay, following after including with of future commerce our enabling transaction. First opportunities our Cash more the recent for App launch customers, and closing potential pay the

the in improving channels by Second, providing services access. growing set our promoting of behavior and and expanding health unlocking info App platform financial and positive expanding product Cash third, more and our new by support the

investing of TBD, mining, OpEx. an as expect mentioned, have we and These we're of be against emerging progress $XXX Finally, include year, Jack million the represent X% growth areas will behind tracking incremental we'll and step milestones which now our for approximately Title, over also wallet roughly up multiple in years. non-GAAP we aggregate hardware the Bitcoin that next overall

ahead, look future we the for holds excited company. As our what we're for

We growing after with and resonate on customers large economics. a see are signals going strong products we market, compelling for how unit addressable our our and

over deliberately of investing it done customers the time. expand the to and turn the operator for portion start Q&A call. our audiences, result, new to products existing we the reach utility are back increase now I'll set we a as As have to

Operator

have We JPMorgan. line the from of with Huang first come instructions] [Operator question the Tien-Tsin

Your now line open. is

ask may question, You your

Tien-Tsin Huang

App thanks pay I the okay. And update. you've talking much. about And connecting Jack, if for been Cash wanted two to ecosystem. so about I Thanks that's the know ask

need is important thinking the payment to going. deposit been to this like really drive method this effort? direct how And you'll more overall, that inflows it to strategy So grow get I've what's in that

us So don't maybe you great. Thanks. updating if the inflow be on mind strategy, that'd

Jack Dorsey

Yeah.

Cash focus more App this of and more relationship. as a moving into So I the on importance would commerce foresee

and now of more effects have a we these towards we being peer, get loop incredible network front to forward firewall end. to peer look and commerce and So,

we Fortunately, on that another and focuses have omnichannel scale commerce. Sellers ecosystem at

of ecosystems these that these differentiator. our and So over it's easy actually believe multiple and lot out for scale them Obviously, do test us a time. theories ultimate is having we superpower up to

thesis ends behind both audiences company and the really as think for different of connection customers and well. connecting we these represents counter some a important. ecosystems, is have make ecosystems our two largest individuals and the pay as of potential and broader ecosystem overall So, probably a any but that strengthens we There's generally sellers between the to value the after value well. And

a direct the making info. of deposit, putting upfront make We're it We've is lot of interface. one more form more In are done to direct accessible. sure deposit it we that terms in

bunch notice that changes we made. a You'll, navigational of

So of deposit, sure into all money a the more get ready people stimulus and intuitive there's make easy on scale. tax not direct we that generally, people a but be just ways for and pay check, when focus on for it's but those to cash of number refund, want and out, checks

for think, towards other the look in is just I what families. announcement did to light this we

benefit effects from any network have direct an and turn their on Cash it new peer to for also to that first cash base still use Cash kids unlocks and entirely who allowing parent the and in card peer grown or level for So those App guardian population can will App us deposit the place.

a our this for like opportunity ways our problem every products think then after commerce us allows really and in And front is to multiple around to interesting App end. have in door open ecosystem. the, Cash that Cash in I being phase we going we're taking new that cash connect -- is But App pay here we families. it a So have most features thing the the

Operator

Research. have question, of of Peller Wolfe we next the And Darrin line

is line Your now open.

ask may a You question.

Darrin Peller

of we'd CAERS pre drivers sort engagement like Nice potential from the now of and App hear just next to can It's the a I follow kind hundred, what couple just bit it's, on the really year user, incremental user, to but think with to along two new thinking on potential Cash and impressive off here a after reach see revenue Cash levels, Hey, X%, touching App engagement, trends. around for guys. thanks on go pay running able bit, likely strategies where at start question tangents that the of transaction still just about be love out I levels, given up per on, impact capabilities the of a the off per just years. it's really view over is what your and want stimulus. to

Amrita Ahuja

happy to Darren, Hey, one. guys. that Thanks take

inform where product I think from focusing it's where Cash the could development perspective, both perspective, instructive at a future App growth. we aggregate is an to as look see across a from as ecosystem, priority well to potential

areas, and the I term for from term RPO We're get we customers utility long remain greater fourth underpins So more perspective. as marketing longer platform ever driving in, really our XXXX, and behind to drive by our a a your priorities, product our operations, engagement our quarter and these support as product investing we'll we value advance head strengthening prioritizing and overall and network, in for entire sales, around into growth question which into priorities strategic continue focus and development, which my the development customer attracting driving flows customers. and for XX ultimately to few how think acquisition

and channels info heard we're Jack that to acts exploring help or expanding App, including inflows a of to from you pay, more this engagement and be we're and that encourage we're future greater health out we're services engagement App financial utility to like the after new a at that borrow into a into banking perspective, from support Cash capabilities, us. for doing our products new the with new and you seen of App above platform, behavior responsibly product And doing commerce with And attract that pay on product we're perspective, with the and scaling expanding other in hiring good platform network be with demographics. a Cash drive perspective, believed building see So velocity, you've fulls for we're to increase see in going strengthens what see beginning Cash first with historically, in from acquisition newer as teams, drive on from experiences which these to acquisition and commerce to roadmap, continued higher you customer And effects each them network and costs and, to and further value drive in our grow across for we've use funds the the ability in you'll see a our again, building too And marketing products. perspective, per teams the areas dedicated stack plans efficient. people bring of XXXX. we to which out historical $X to as we've value new lifetime lifetime a customers from customer is range reaching investing profit gross focus customers, our multiple

Given the see opportunities that ahead. we

and advances people where ability referrals, of CU XXXX and is our and as come And adopt a our support with of to add outpaced our make new portion App Cash which inflow Part of enhancement with like all limits use So quickly to and Cash of more infrastructure inflow to beyond drive and, the we're drive in-app messaging these as some and includes sound go friction ramp that team. deposits grow makes recent to beyond with overall an enhancement And ecosystem of paid support. finally in to as peer products channels. around investment, the and App engagement it is, can on future this adopting inquiries. future into some align and foundation more that marketing, majority and and growth of And our spend are utility for grows but way our continue of us, to with to Cash initiatives and that cross-sell The as a the to types platform build grow awareness, you've we to part And spend in which referral our Cash life, And App support we driving is the true our the it growth. areas be sources peer to paid customers going the growth, about brand going customers to XXXX, investment adopting, channels. excited to, launched to recently and become and investment track and in demographics. existing seen, new health to, a products. the We'll well reaching and differentiator program ecosystem. initiatives we'll our returns, frankly App of customers things strategic which and, we're it we're is the for initiatives has levers ultimately We'll built. that's the, growth our more dynamic lifestyle and out reduce to

Operator

you. Thank

Next question [indiscernible]. we have a question from

now line Your open. is

You may ask question. a

Unidentified Analyst

Hello, is and like Texas. brick shop I'm available continue was Andrea. I at Square food owned a owner truck San as my growing expand. name we a all to a location, mortar and a moment. donut here business My mainly use from crafted question in Antonio, to features the we

have we most is the of Square to need integrated products up we look that can to One do you and as expand? market important to the we all features see things -- to ensure expect roll introduce we

Jack Dorsey

Yeah. and A using you square. for XXX% thank

we but we We, mind. in make that we the years of meant that businesses, able XX started ago proprietors our were of cards. very And we accepting this so ambitions. wanted was to scale ahead close to of built to simple sure with credit seller's So, smallest for, exactly ecosystem and solution a with

in hire multiple location, of So to more get locations that. decided to want have those we the all they we, they physical a to way get didn't if things employees, decided

very customers. that on solve their So mess that our to of that company most so they increases. focus business that, important, our of allows help are allows a crew wanted areas the they around the complexity more have acquired we can one to the disclose to One, needs this to of all And platform sellers can that so and, scale manage is which all help employee your employees as their is meant recent sophistication us tools to to their, or called and very all their continue from we and of progressively large management. small, what's

of we, being important of, So of working. thousands we it's of like all we're our show seller small, the And by have the of any really largest, but getting very growth. way of I that of vendors not think that stadiums sizes in also to us who live

Operator

Thank you.

have, We of comes the the MoffettNathanson. line question Ellis with Lisa next on

open. Your line now is

ask may question a You

Lisa Ellis

Good I'm the afternoon. to ecosystem. Thanks. over to switch seller going

prepared you you You as and remind Can how piece called Sellers' expansion GP and much growing ex international look looking US where out us the you? that into particularly remarks, is investment the thank into derived areas are markets France. for recent Sellers forward, expansion just Amrita of from priority looking your 'XX, fast is internationally maybe in how

Jack Dorsey

Maybe make Amrita I'll start this off follow. and a

to like getting we understanding at then with that the there's across regulatory. businesses for deliberate we parody local So of geos. look where And our Because, our want a finally, the, in do and make across require like and to sure one one to This a, And with product we but it's in into local we very sellers a level awareness. new for we there's for, market a high want be looking just to expanding entrepreneurship new a then product, and potential number differences a market as bank markets has think all partnership success. at at that, decision. a, one invest launching we're and the not of of small and brand global after then look all products

lot we've more for opportunity markets that very products of to And conscious more why. we're a and more in still of of exist. loans square choices already So such square of in that around open made there's what we markets the in, places already us as in our the

is So that focus. our

the, that the France well, in most. markets but being at new the So entirely all also a with we're getting of markets balance products, parity at, between looking our in it's into as

Amrita Ahuja

mix markets third are national within our have strong And so in to strategic point our of your Lisa they markets us for growing future We us, and to, our seller to are future. faster be growth area than growing periodic a despite investment the our about us saw outside in the year the And those next continue priorities, growing for the they focus business. key continue add a that, markets they opportunity I'll as cause seen quarter, lockdowns.

priorities. sellers, As strategic said, I

ahead it's part going to your six omnichannel our piece growing key the and As question, key the initiatives up a quarter enabling and comfortable a for we our look piece next are and of expanding market global up range. sales why global on marketing of we're paybacks to going year

spend these As XXXX, we're international we demand, future. sales is outside brand the us and potential growing marketing top as are and And mix these of a be and well then spend for scaling improve we'll breadth new where sales outside what investments see to France which beta the than our marketing over Spain, percentage where the areas, markets reach, greater in in across the to markets in mix. of that faster global, which and funnel with we've the marketing of our in us as ecosystem geographies and those in, with awareness towards be for in us, the and launches largest the drive, of given brand ramping spend where the time, include and paybacks sales and new seen larger and particularly continues sellers key Ireland

how for we closing product future talking fit markets these the international, these and markets to in reach over into ROI make market we key each for sure see early as and want to was of that to the sellers investments areas any for these lower us these a course, piece and their strong from perspective, product a a international make, needs have our to us as time. products and that across we with It's development these services them as app well Jack these features and improve of of And given the product the in support us. the about our of expand localize can that strategic markets. also critical expect years in resonating are invest area We

So area future. us, key the strategic very focus and for for

Operator

you. Thank

question Next the Credit from of Timothy Chiodo comes line with Suisse.

open. now line Your is

You may ask a question.

Timothy Chiodo

digging for to those seller Great, in the approach sellers. to and a bringing more XXXX work big online thank you And that's have beyond. is this And want that in with into for light enterprise up the large relationships with including approach really pay. dig potential the bundled some the after of I I'm customers large question.

hoping was could that button a bit later I the be whether, just now that talk of by pay large we little suite offerings more whether App into about or traditional full pay bundle or could payments it's your sold those Cash talking So processing other sort course, enterprises. offers really a when more then thought if unique services allow of might square you And or to and have will. unbranded, square there a that the or being those angle it with is of competitive large seller,

Jack Dorsey

Yeah, this is exactly it.

ecosystems broad that our tool biggest that we, have As very They're in are sets. we I said one cohesive. strengths earlier, this is our, do of is one of their

the legacy to very a your with in a for closing pay as ecosystems, sellers it's a between our the square think believe connection individuals smart they with cohesive obviously in us that's both business I say allows can turned transaction, we've and seller much commerce the both tools after cash that integrate I and it still where of the number way, you So seller. maturity stadiums also there's the of I, we retailers. on as our for, individual is after sellers bundling, are or developer needed we has And are I proof the across definitely have platforms point that. And well add of done drive the tools really two really on me. also more that that think that natural very to specific to side can way also reach potential on homes that's that shows And within and or custom or larger the and given seller especially side I after up. like the,

square the back transactions the app discovery not just app So brain, app but integrate our a we commerce cash like seen transaction side. also end And that's the the more have app. side, worked relationship front and word opportunity. cash the to as on on closes, as to the we with comment on cash Hey, seller the from is to more even stronger

Operator

Thank you.

Next of question Jefferies. we had the Trevor of line Williams

Your open. line is now

your ask may You question.

Trevor Williams

one afternoon. app. Great, thanks. throw I'll another on And cash in the Good

network the of you a to side. gives actives effects really you that million of as at cash user a today, or clear, close look puts user few trying mean, monthly monetize as have we you having at benefits plug base get $XX that scale how peer-to-peer benefit the I I scale what advantages more base a to much. after size on just very you larger how at app can your on users of beyond But a that mean, of user level thanks seems more but at do base thinking in unlock from higher Afterpay, or just think when to a the Thanks are. so the pretty advantage larger you when So the what just scale monetization. standalone competitive

Jack Dorsey

foundation. customers, have larger more also to we for I on to more we the effect. it of and I think not and familiar upon become those no even to them even opportunities in it's do discovery features moves it again, can benefit but and compelling found to important our particular our But discovery using transact and discovery introduce cash existing network our offline. app and more whether purely can the products, it new the open We, commerce And be to neighborhood an activity as builds as having for network lot can, digital of as that individuals where boost would that to really have us they around like have create be way and around we and And you And, with access customers starts products Yeah, back up have a think it, but strengthen And, of a more experience base those for gives the, passionate your businesses degree. particular more a directionally point customers. network. cash because online a can greater highlight we of and their we me sellers a products guess and of a there's the nationwide. businesses have I things come or and more and number get seller a a is instance lot product as I, to it's turn or top the customers, as one, opportunity seller both local on also well and there and we for ecosystem we all they, to even further for to we

the the especially I but outsides up and there's, more scale think we well that's lot insights cash global. about the I, then, as can having there's potential a and feel higher we of intention So much, which I, me UK, US much I and as think we go have, as being for

Amrita Ahuja

in have those we June, as that of that actives a I cash I said, app the monthly referenced transacted ecosystem. average week $XX two key nearly our on engagement back us base. of And focus this for across customer you each million think Trevor thirds area is

And higher can more the regular our do ability enables the we customers to provide network there value basis. us to ultimately into utility make the ecosystem further values, opportunity to day, a have invest back throughout to the we more this So differentiated and drive to effects, daily engagement these drive a value which further on to provide make and drive customers. lifetime then

driving and the network reach are So key us. of engagement I think for both continued priorities the the

Operator

Thank you.

comes line question at the from Rawat Harshita Next Bernstein. of

now is open. line Your

You a may ask question.

Harshita Rawat

Thanks buy and for into expand Thank beyond Bitcoin, my Jack, Bitcoin. and sell, sell in assistance. your kind cryptocurrencies users crypto wonder in enabling and to remarks I buy of afternoon. taking question. regarding NSP looking engage for other Are you. follow-up example, prepared defined also you your Good to

Jack Dorsey

We're not.

going And to building in our claim of to, have is on mind be businesses. become towards is currency app native we the We're mining, we goal number the or focus to a cash wallet, home just device exploring consumer hardware helping want the solid a at for Our to, Bitcoins they're one. initiatives Bitcoin internet. a a that business

And Bitcoin lot in stability for important. on resilience, over it resilience that and, finance we, right. offers. has new fact TBD, offers that Bitcoin is this called as to to business community unit believe ideas a also that's more back in much do a and our this on Bitcoin the, focused the stack the wallet, possible we approaches around principles plus. the our decade the make the all with we believe, all reflected building And And mining. that to as also Bitcoin we're had focus the of which giving it's is developer that platform to fundamentals, decentralized enable the We In want sure is

November excited to really on focus. is we're release the on excited So about direction what XX and a and with we're going our steering more white paper TBD about details

Operator

Thank you.

comes from line of KBCM. question Beck the of Josh Next

is now line Your open.

You a may ask question.

Josh Beck

taking plus gears the for getting team age demographic app. expanding certainly back the category. the that you Obviously wanted Thank is question. and to on to XX cash shift I into

what Obviously of curious app couple a if for on there will. tweens, focus So you of and also view that five elements segment. you are I'm cash teens as and the defining companies

curious just frame few and where years. in the that on So next see that how you opportunity you

Jack Dorsey

fulfill are But by in is access a XX for because there before huge then must Cash fundamentals. us Yeah. we're we're peer going the able larger But don't have it's big have to now launch States. it's fundamentals been population United our This the the showing to peer we're, customers. that finally a teens a obviously request to sister to really we

being and a parents receiving the workforce from send in to allowance being card the your, use and I card, to even design my money it take able function own money Just goes or deposit cash your it. family, me on can a from use get dark parents received your or cash my able direct can that who and card to cash the actually friend your the send friends app

everything the have for will side, will controls feature exist but you that So cash with you this from most expect app would parents or guardian.

and offer to continue great have and and So of start. the have claim now definitely that art things effects space. expand benefit to way as that get we, building from and business on account we'll to and But savings with we it. We, all we think we we, that products much cash health or we It's all cash we the the the network app. into we the in audience the we as a responsibility it's like the strength a the main card have larger a with have take and stocks

want pertains information as can with about in And be people in include, possible, healthy much as always to So probably for definitely we think provide so families their finances. and responsible we'll up cash

Amrita Ahuja

add Josh. I I just that. would would,

the utility of to peer, sort are I over audience. think for which not and years, differentiating some just that the broader for certainly for And these And this audience. truly app cash app this that is authentic, things here that with brand certainly Z the the inclusion effects, of for time to the the just network truly families for gen differentiate cash strength financial factors their it's is said, scale network, and the teams Jack many as the enables other cultivated not card, aspirational third, cash app through for be which but for, it's that things so of with audience. the and which able do that then has peer key those of cash you'll ultimately fact and this product this the there's

Operator

Thank you.

Ramsey next the comes the have question Barclays. of El-Assal of into line We

is now Your open. line

You a question. may ask

Ramsey El-Assal

thoughts question Hi, the of types don't What can level. thanks bank are that ask that I high with in other pay point a planning in partnership with on think at on payments about taking broadly evening. to through And some on, pay you my earlier this year the next? Platt, by I and wanted maybe a tool to offer traditional it's and card an guys announced one I for much ACH rails? cash rely so acceptance pay at sort if feature Bitcoins are of tack more you app your

Jack Dorsey

Yeah, which have I is think piece. referencing lower accepting a you're maybe payments definitely the what transfer bank sellers so processing

and sack, for we're for the opportunities sellers up. we're, So both for always add cash looking efficiency to to

the something place as rum. said is as pay and helping we we're, in our have, lightning probably currency even of our we it foundation the that. functionality have I find As soon customers be in in to It's that app the foundational we before, ways make terms cash and will as like interface infrastructure not Bitcoin to native definitely specifically And efficient, for cheaper on focus allow. Bitcoin more in

to us. network the space. currency do in are in that to of So going important we're aspects really it And more

Operator

you. Thank

with the have, you Keane question. We Deutsche may ask the of next line Brian, Bryan comes from question your Bank.

Bryan Keane

question. And Hi taking guys. thanks for the

still ask want impacting about Just to the, it stimulus numbers. on much the how is

curious on I their you rate app. right several the saving up know balances guys Just And cash and on cash doing things for now. to users get app balances are

in just that. little a out figuring So about bit interested be

Jack Dorsey

one. to happy this as hit Maybe Hey, we'll balance quickly. take

of you warrant really quarter more saw balances broadly. to inflows look quarter, we a though slightly XXX% down info year First over customer would on We year at basis. over

are end a balances time in of snapshot at measure at of the just a quarter. As growth the

drives greater we network as the on health year on during profit year in October for expected customer year-over-year XX% spending ways about the a ultimately two that CAGR about on ahead, the course, to out to us range our medium as what key I found as disbursements to inflows to we we're we said, as on orient which And July a and them then cash think when in health ecosystem. inflows think that what What What also is the we size quarter, over services a in ultimately but more, of we've than third year we the we in over ahead the really is enables had gross we October, around And is engagement, around year basis. profit greater app. the that long-term. impacts two long-term focused gross network around to which look to laid rate on so power, In expect seen to year from the year the K largely inflows than basis, basis. XX% inflows. from normalization stability seen bring of the on ultimately the deposits, priorities of then of platform enables government around we came what is relative and network, for always And October ecosystem the as customers those end, use commerce XX% think growth year that overall, financial we the across all into more we're our of more for course, that's the building August

Operator

Thank you.

of question ISI. comes David of Togut Evercore the line next have the from We

Your line now is open.

ask may a question. You

David Togut

We've so your much. following defaulting better been strategy your pilot app, to I'd balances. be understand payments and closed like store with Afterpay. L appears loop to Thanks to BNP cash which

your Can with XXXX, Given sellers billion help be your strategy at closed could and It you seems of balances benefits. stored square constantly were X it generate refilled. transaction the us margin end Afterpay? being better Afterpay loop NPL around understand with at significant

Jack Dorsey

jump Sure. on I this can in one.

day enables like building, I discovery things And a cash. Afterpay in-app product we're to think as their commerce what merchants. drive this is for the they've payment with that experience historically focused leads us that to platform seen with own some we're within enterprise their a and customers of type we've app, our been which, the million on ultimately driving

there with, seller us. just on payment NPL savings course, strategic things us the, app the is will At needed type app integration commerce in time, discovery for the over think opportunities cost ecosystem, but So the cash cash beyond both enablement. when of that and app or even enabled commerce like is the street for imperative with us focus pay be enables, with and think about for you enables, Afterpay B to really about the our that of here

Operator

you. Thank

of come We have the line George Cowen. Mihalos question next of the from

is line open. now Your

question. a may ask You

George Mihalos

question. for my Great. taking Thanks

revenue cash to card within cash Just the importance cash can PDP is sources us ecosystem maybe instant app emerita, cash wanted of relates within and the and update the cash you. as you of then the kind of ask like, how penetrated different can thank the cash the on to it card card, us and you remind breakdown app app

Amrita Ahuja

Sure.

cash here cash. card we shared cash X attached seeing strong had within our we hit up for March highest our customers. million card continue over it first, customers the usage and in product upside a of to weekly is That a see peer-to-peer or cash to is year using back using card basis, customers. card that weekly nearly regular adoption with utility what So for drive doubled active had It we're than going on customers. rate cash monthly our year, They're faster cash

are cash active. quarter stat ecosystem average active overall non-cash cash that that for customers highly brought our as Overall, customers, than info across a we've cash at and expenses. have signaling unique for customers Obviously, offerings rewards the customers purchases to using Our card that manage everyday retailers, really that card around major for we we've to their card card these other XX% inflows brought Historically, cash as and cash twice transportation for piece on been here importance that card many with card a cash shared is everyday greater want key to like into what about seen we for it that use food, the we app. engaged working card of into boost we that us. ecosystem And countries are card, the to of a a attached products. us. card also expanding which was third non-cash driving and number in-person online money in has And now nearly globally outside obviously the when see in the functionality Customers is on more products of driver can on to products growth of use awareness cash dots, And utility drive this think quarter. access card. led

the and your see products cash in buy a and take monetization, on to deposit we both think and card investing of like So is sources. revenue beyond breakdown direct of part with as real the grow question I customers more second more cash and card engagement on, opportunity here

well We drive area different for as cash we that continue within that ahead, even is app. time. have we regular to product we and a expect see app, as especially something across a adoption when it's diversification And as focus ahead, monetization diversification see the to in to key cash look we drive how that, engagement. over products roadmap the utility greater to And of us at ultimately product the look

Operator

question. for Thank you. Ryan And we one have that [ph]. time comes line Klein And last from

Your now line is open.

a may question, You ask

Unidentified Analyst

actually here. It's [indiscernible] thinks. Hey,

for from taking Thanks Mizuho. question. Sorry for the my mess up

quickly thank year you maybe the online from next So really any, can you. if credit upside cash for for quantify app, a potential tax on, the

Jack Dorsey

just direct big This a there's a understand more we lot bunch think more to product charges we tax to the just this in we opportunity it the financial to tax simplify want a work and start, do is how Yeah, gives reason as catch a up. helps brings we our has system customers to information refund successful did is one launch of ahead of to, sure one. deposit implosion, to tasks the season expand and of that cash on And the tax that will filing have make taxes season. to up

direct, and potentially for another info a customers So us. really we're experience seamless positive highlighting powerful have and

Operator

you and participating That concludes question. for program. thank into This this the you. Ladies be program. Thank gentlemen, the would last

You all may disconnect.

Block (XYZ) 5 Nov 212021 Q3 Earnings call transcript