SQ - Earnings call transcript Q1 2022

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Operator

Good day, ladies and gentlemen, and welcome to the Block First Quarter 2022 Earnings Conference Call. I would now like to turn the call over to your host, Nikhil Dixit Head of Investor Relations. Please go ahead, Sir.

Nikhil Dixit

Hi, everyone. Thanks for joining our first quarter 2022 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

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 any of a look like Q&A, our call conference call. today's could of note at for questions on Reported 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 April. results current closed profit have April subject for provide April During are by our

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

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

Jack Dorsey

I'm it XX, all on our you Thank spending Investor time business us. from you the areas with to May Trust, We're in going doing where few Cash of connects made able across highlights everything progress to to for a forward four and together. share we'll and Afterpay start Families, for Bitcoin. with quarter. at App we're joining App all how lot a this all Cash be Day looking across Block quarter: our

long-standing We continue to ecosystem for App to card safe encourages into with controls. with Cash App Cash customers and make Introducing accounts simple where getting and a request. it into in insurance leads their started seen to bring than builds easier sellers Cash XXXXX FDIC quarter. first Afterpay just on actives Cash trust drive the Afterpay all the people April families maintain fulfills balance And we're more a to integrating the customer App and we've during already App

transactions to for initiative since our LDK few to feature options to App. get making have through make Lightning just work all can evaluated instant functionality last announced month, More unusable transactions. Cash Bitcoin build this blockchain send development accessible to Bitcoin Spiral, the other as Transactions we've continue Bitcoin offering the months started App. ecosystem. built Lightning making through long App on receive and bought we XX it the fixes kit and through help the open Lightning small as built minutes available to ultimately XX the into more accounts million Bitcoin it Bitcoin Cash free of the Cash The since using reduced team We a years everyday team and network. source The than chose the by Spiral's settle, service. In fund the customers. take the that ability we to

We trust. believe into world network open We can global App automatically can of of paychecks transaction these a transmission the an invest like their Bitcoin card Cash active the steps percentage fees. an monetary increase towards that also announced Bitcoin with anyone usability with all no

increases For it probability velocity us, more global we base. customer believe and a the of serving

Turning to our Square. original ecosystem

services small In Square tools in-store a streamlined and and Stand the more orders. we in to flow to sellers April, a sellers modernized for provides Square sellers payments help large and their entire customers it the continue from reader checkout first of from Stand updated more in-person card a business managing new hardware, payments introduced sales. with to we introduced make sales, single deliveries Since across and intuitive and markets separate experience. our run build helped a their no XXXX, redesigned place integrated with online need that We with all and

With sellers and a most our been commerce to from product affordable reflect the sellers to-date today. Square do the has new that business ground countertop Stand, how experience up we're updated offering

Buy Another way are service. Square is Later the Pay Now we ecosystem, with strengthening Afterpay's

as This introducing Buy quarter integration Afterpay plan than quarter in transaction. XX% In of Square of well. make Buy available to used seller and Later of sellers sales Now for Afterpay. and by XX,XXX an thousands an we integrated with Square We more base this Afterpay sellers in-person as today months, better the soon the Pay since additional feature Pay This payment Now online Later have processed processed to all compete. help online sellers grew have sizes

the With Investor to connections a and our at this like valuable have App and with apart Cash and share about all so of Amrita. believe we here's We'll we Square it set our talked great between more calls, Afterpay to customers. many in come. Day. that past this what you we've our ecosystems are example us is the makes As more

Amrita Ahuja

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

gross profit profit. of our our million remainder first and In quarter, update EBITDA XX% through an third investments in our at February delivered billion look the for XXXX; Afterpay contributed first a on $XXX $X.X was growth ecosystems Adjusted second quarter business April; our gross impressive performance of the March, look year-over-year. up In of year. with of $XX First, million. at the a and the

the XX% profit CAGR on for billion $X.X XX% up gross three-year this a was quarter basis on year-over-year and Excluding basis. a

address wanted Afterpay through Square in to getting financial ecosystems, Before App. flow into for how results Cash results and the I will our our

million a CAGR GPV profit basis. the profit transaction not gross revenue of Afterpay integrating and XX% expect or App Afterpay we've first App. Cash our recognize gross generated to the revenue Square allocate to on it and of Afterpay we're in ecosystems decided benefit to Square quarter, into and of and XX% services-based and each, gross and and Given an in three-year subscription revenue Cash line our and profit. $XXX growth of of XX% App both Cash each increase profit We in year-over-year

from Excluding was profit year-over-year on $XX of XX% gross Cash basis. gross profit and CAGR XX% million App up Afterpay $XXX three-year a million

drivers. the Let's talk about of some

strongest driven of App month. we three-year Card more gross with during prior products First, Cash year-over-year by a App in the transacted adoption was This more than despite on of on fastest-growing XXX% monthly one March period including basis. year average monthly our Cash growth card. strong strong quarter streams, actives profit the as XX% and our monetization growth first CAGR growth XX than is times of saw our engagement our in ecosystem across App in on banking Cash the

slightly into Direct monthly up quarter-over-quarter growing disbursements Increased been deposit generated deposit with million increase of both but in our adoption seen of significant And a Second, paycheck XX% believe bring there on year were year-over-year direct actives. of increasing deposits, increased has gross prior still CAGR reached on has period been strength a March. key adoption particular inflows X.X than profit, we've year-over-year while from basis. quarter-over-quarter. times we mix recurring and awareness on which million more in quarterly year-over-year Square Cash a ever inflows of so been growth we as much government we've $XXX here. basis. given volume a year-over-year is monthly saw across base, our a capabilities. highest ahead opportunity XX% the and we deposit active In driver Inflows App three-year and our March, to basis active direct an declined approximately per X.X we

up and gross on year-over-year performance. XX% $XXX few Square's Afterpay, a regarding XX% three-year profit Excluding factors basis. CAGR Square million A was

First, mid-market year-over-year was from mid-market among been of we gross We've adoption profit. and grow the mid-market sellers. continue XX% the Square segments share our total upmarket gain by to up outpacing encouraged Gross to profit fund financial likely sellers twice Savings. Square average accounts their among seller. specifically with the services products sellers after Square as were In opening Savings soon to first mid-market the quarter, compared it

an sellers for opportunity solution this shows early presenting Our an Square by may traditional financial that serve to segment be integrated traction set. institutions with even underserved larger

to credit third-party the launched an parity. for outside in And a On-Demand Second, markets important giving In Loans Delivery, US quarter, strategy. our options. tool the strengthening we of via expand first key growth sellers fulfillment to access part our omnichannel Square in improved product we is Canada, sellers and presence

engage retain gross in added CRM Square's also We and represented profit. markets our customers. sellers Ireland Including help tools Afterpay of profit the to XX% US outside gross in our

to approximately a a relatively expect pandemic. On comparisons wanted The quarter's the we of XX% for including be two-year CAGR profit with share basis consistent on April, three-year during first we the we three-year XX% basis, the company unusual our trends. gross growth CAGR. expect recent overall Next growth normalize Afterpay. In year-over-year helps CAGR growth to

flow a inflows XX% we to gross For than Cash more overall and in profit XX% April, brought ecosystem. around excluding the App actives cash three-year April, basis. year-over-year healthy -- into saw Cash saw growth on Afterpay expect In CAGR by App, grow or year-over-year in

gross XX% a XX% basis. in CAGR Square, XX% around XX% grow excluding CAGR profit more on April. by is and For GPV is year-over-year slight be April we year-over-year a a in Afterpay expected improvement basis which up to XX% the on X-year quarter. in And Square from to than first three-year up expect

Square basis, two we faster expected GPV a than on have gross factors. profit driven As year-over-year grew by

We closer the gross First, and as second, we returned to we've program to only also amount applications much normalization levels; debit revenue XXXX. PPP recognized recognize X% the gross forgiven. transactions million the present card remainder in PPP transaction-based across profit profit with margins are of we XXXX yet a in to roughly smaller $XX completing in expect and to of seen of of loan not mix a be QX

between and GPV growth through on With see to profit delta growth gross XXXX. year-over-year a a impacts, of remainder the these Square's expect basis we

the one Again where profit in gross and you. we quarters. GPV three-year were I similar lessen XX% coming CAGRs Although, the this delta at would with April growth at in orient XX% growth expect another and to to

million of expect or intangible shift gross GMV to profit assets to amortization a Turning purchase expense, gross newer not be which below second basis quarterly this we rather first in three-year we $X acquisition. and to and sales revenue X.XX% This related first a by CAGR cost mix during to consumer of expected driven a an the quarter in expenses profit And basis was by up of expect In Afterpay's come consistent price XX% but quarter GMV XXXX. on on a going a operational are GAAP a is impacted which impact of year-over-year GAAP growth were On million April to to is with Afterpay. to be on adjustment Losses markets. the half receivables basis. was XX% accounting for the $XX the results the forward.

unlocking We consumer our repayment of focused on on integration. with with see combined XX% healthy potential the time. continue to installments behavior We're paid

Square of later quarters. our broader ecosystem opportunity Square coming more launch online the to bring Afterpay to addition see sellers, a now the in pay to we of for In buy

On App broader Cash App of generation side, on and early Afterpay the to of capabilities in platform. days demand bringing been building a the are commerce Cash we've focused out the

XXX,XXX merchants to Our sent Afterpay from early leads Jack. you as have experiments heard

a on integration Investor share we'll which map detailed focused been have teams at Day. more road about Our

quarter year. to trends Turning now second the remainder and of for the full

from excluding the a we That XXXX said, macro excluding As as our continue profit services call across second and App's to last innovations benefit in the favorable the on as Cash product financial compared we gross the we in rate introduce our improve Afterpay certain will and year-over-year new earnings adjustments comparisons to Cash even of gross half become first Through priorities pricing of the shared with grow not areas. believe we yet continuing last the commerce to growth half, profit year have in environment Also, the and App broader Afterpay, April we stable. consistent sequentially quarter with year remainder macroeconomic spending. overall seen for assuming we're quarter what each deterioration we environment. consumer watch mentioned throughout Square remains expect to the more

year Moving to investments the second planned and our for quarter XXXX. full

Afterpay. first $XXX to For quarter or the when the operating expect to overall compared $XXX second million quarter, increase excluding non-GAAP expenses we by million

full includes the base non-GAAP year. this expected we operating $X.X operating million to billion approximately of XXXX, quarter to Afterpay's For This expenses expect $XXX expense by compared increase XXXX. overall

expect to or similar we non-GAAP Excluding step-up is expenses operating the XXXX. billion, Afterpay, overall year-over-year to to which by XX% $X.X grow from XXXX

can't the As of in the adjusted up you to There's EBITDA February, Day lot during more expect since open update to Day and ago in XXth. our a with Investor of share to to to that deliver half on We're second last the your the around to investment we ecosystem, half in wait With first the shared pacing it at year. business XXXX compared you our years Investor opportunity, on five it model. We talk our of market our you. strategy we'll we year depth questions. greater the excited to given

Operator

of the from JPMorgan. Tien-Tsin Your first Huang line Instructions] from question [Operator comes

go Your line open. is Please ahead.

Tien-Tsin Huang

talk all today to of you Great much. [ph]. so to Thanks

wanted it's just expectations. now owned but performing consumer asset itself still months? change the you're Thanks. how that So Any and what your you've stable Afterpay a pretty here you versus see I is for performing. in Afterpay investing how heard is for the on couple from how to of I in it ask curious example

Jack Dorsey

And I'll it is a space. all of us This off What every the whether we of and our power also perform place and to the other our the from first in and this. have pay those this be focus ecosystem. and now it connections, on by obviously, competitors with for has by about biggest advantage both really integration. where together. distracts ecosystems. sets two connections we lot a we fundamentals one lot We space managed we the in stronger, of company fact lot individuals, company, the focusing start We're connect And definitely which by thing it into We're the we've integration early those is excited on acquired making extremely connect company in is later still Yes. done. all Afterpay a ever it. that but this reason this taking individual of buy to much see goes. do through these sellers, making seller created apart our of They both customers a lot see the value they had

to I integrate side. seller you leads globally Cash of really the on in We're where side. Cash actually starting the opening companies on grow. App misstated. is businesses to the I around because that continue to to one XX,XXX XXX,XXX the that us as we that's I in really sellers Afterpay integrated It ways that Cash have will just point to time all wasn't look on it's we App So remarks products, imagine And App Afterpay and you. said for at be would expect future we goes that discover but And represents also to best discovery. from and my

ecosystem ecosystem seller the in both with have bear and really we the this to integration. that everything comes So Cash App

Amrita Ahuja

bit a term. yes, near we fill after. opportunity near-term to transformational is on in a is What spoke the going And market. the that Tien-Tsin, Jack competitive it long-term we're in see little I'll the

our are ground. We holding

loss a strongly and year-over-year From which we're onboarding loss XX discipline rate Afterpay in first X.XX% here, what as consumers the Our managing half last from in making in trade-offs annual those more over platform, has these Obviously, do the our deliberately of some year-over-year. platform, into grew being increased more to the the of consumers consumer spend quality engaged had are on their rate terms – thing with XX% near-term grew ability on we're made spend perspective focus we're in a repayments and consistent responsibly of the who the second a XX% on right but And across rates frequency. measures. our we the have increased traction XX%, quarter, on you maintaining growth, XXX,XXX and that's time. we with year-over-year over rates, consumers is which you're time. each and perspective, seeing consumer loss there active platform, bringing year-over-year, feel over merchants million time and driving loss customer sorry driving customers managing XX% want of frequency attracting year environment. to deliberate on that And in to manage on consumers this of to a

So on will believe that's the this so we what platform which together, transformational. longer-term focus is near as commerce we our term, build towards be

Operator

Thank you.

line the question Chiodo Tim Credit from comes Suisse. next from Your of

Your line go is open. ahead, Please, sir.

Tim Chiodo

Great. Thanks commerce. question. similar Cash taking of same theme broader lot. the the and the a topic App Thanks Also, on around for

could So the did you're Afterpay merchant evolve or what sites. start like be of And you the how experience folks shopping you about integrating this Discover we but part into time of Afterpay percentage sounds talk that over But did some it to at we merchants that? funding portion mentioned follow-up, for and maybe that this might point that a on over in maybe you the noticed a And a mentioned the merchant purchasing earlier, filings an just those terms in Jack, as around notice us funded? merchant tab? update the of of Boost overall might sending in-app give disclosure transactions of that degree that last I Cash maybe believe Boost of you Afterpay you could just And X%-or-so. Cash are was a versus Thanks related, boosted. App Card funded the lot.

Jack Dorsey

important our this offline; and think it's and and that very on program in online a we within enable one products; to rewards customers for that I strategic of entire complements It It it's overall really neighborhood front. aspect merchants something with have business. the Square acquisition the generation we sellers, can -- also, of made App which fairly is sellers; our built is will the as so grow think is lead out, critical ecosystem Yes. we their Discovery it's we why reasons And App you pointed easily. both massively. is what believe already even and the -- all Boost, Cash discover this Cash

we think in these these to So possible. as ever course, make all these products, want of it we all Cash all people combining App And, first the explore for for frictionless to things, merchants. as allowing time

the able that Everything, within they're to where commerce imagine sales App bring can you and more of the very because So help goes terms instantly. vehicle, our that are in make want because right they that means our sellers making happy eventually, customers do would that easy. Cash getting what app,

Amrita Ahuja

Boost, as on we've meaningful there. seeing see through are out we Afterpay App really I'll actually Tim seeing the Overall, at more opportunity we Boost, not funding funding as on about opportunity more how but a the we compelling that partner the Afterpay that well have a there. platform We're now platform App as that's very Cash Cash make strong interest which is consumers early at we the into Where increase to and around Afterpay one. Cash add buy merchant a have sellers called Pay. And later strength or pitch App new we're Day. about that's an combined share is Investor consumer new a potential some compelling combined we'll ones, a merchants card. pitch then, consumer merchant, that you see again the part of something today, unique because pay and of between learn new through And Boost really of scale Boost we because frequency is platform, existing sellers the that And pitch of their the about able been

strong well, Cash is have integrated something on on pitch haven't future sales we what Pay. on Afterpay, We Boost yet potential as that App as seeing a the see, we're that but

Operator

Thank you.

question comes of next from Research. Your Wolfe from line the Darrin Peller

Your line go ahead. Please, is open.

Darrin Peller

Thanks, Hey. guys.

a I even monthly -- Cash really App I'm our metrics Your hearing the out talking I lot some card gross think, about excluding I year of you progresses estimates. month or handily estimate And times sequential the improvement per you I clearly, the of you engagement mean is -- profit around that mean, said here. know result, strength. as from you're engagement, guys threw driving XX use, over beat And Afterpay, debit

Taxes, into it gives understand it's much about? little that dive What it's Whether are just a what's confidence guys. sustaining. with can new -- we products. and that they that or that behavior behavior features excited bit Cash if consumer other in Thanks most you your again, So driving App

Amrita Ahuja

Thanks the can Sure. question, I for Darrin. lead here. off

growth strong to on strong. basis first on of greater leading growth with as a saw you growth Cash well be CAGR We in have into continues What ex the XX% App. three-year April quarter, the in than very terms as year-over-year XX% Afterpay seen here

what I monetization think These Cash three win comes it inflow we've in drivers our to of back a around of lot App. shared key framework.

First growing our active base.

of XX end the over we actives. of had monthly December million As

continue in month-over-month grow and that to quarter-over-quarter April. into We QX

you and grow. well We inflow in strongest Second with the in noted transactions as inflows, as growing month we during across average remarks we had on strongest quarter have of to that's on product month our our adoption XX continued our March engagement And QX. you back This as the able the growing ever in as even noted system. know, to engagement the our we as base. them rate. we flex that then we've charge come recently. And more on on drive And how monetization that the have pricing able products value around been been of monthly and is effectively third some variable much to into inflows finally, across

moves Cash our environment strong of we've strong health the really where a customers traction that's and the App, Cash midst base that on of the App. broader and even So framework macro growth in seen in dynamic

our term opportunities here integrated Cash we or App opportunity platform an like App ramp it's see through to out inflows platform. to families have products it's You driving with are to the whether just that whether reaching significant longer in also commerce build it's the Pay deposits direct layer newer top of whether growth continue on drive through that we Cash to that Afterpay, some beginning things to

Operator

Thank you.

from Lisa Your next Ellis from MoffettNathanson. comes question

open. Please ahead. line Your go is

Lisa Ellis

Thanks the quarter. for switch GPV afternoon. of contribution question. ago. to Good looking business, from taking to up a my I XX% I you. that's Square up, think over year at that That's X% wanted international to Thank in the

commented some product Canada the Ireland. of on and You in rollouts

can of more you international the Thank the countries sort for you. taking to Which from do prioritizing back et can so are get international describe strategy have differently? we a Just cetera you broadly kind we for a upside And with do Square? side Square? of step how sense what expansion just can much anticipate you

Jack Dorsey

Yeah, of course.

So focus global well. that, Number sellers markets. expansion and the means as remains ideally markets markets. in we regard approaches. Number we're capabilities we have three to is product our awareness top priority a across for And our And within we States, them Square of this reaching the have in in understanding and that two, the in we to Square of all each that with our also the have one one, of Square, invest for parity product product United Cash with we currently App. what all to brand launching broader on products we're drive everywhere

So Square one the is loans that currently when markets exist all we in market, that also it's in in.

QX, our cash my I And do new in launched flow. Square of to in Ireland And launched go all remarks they when we On-Demand Square In sellers as of all better Loyalty exactly manage to features in Delivery. we our we said So Loans in launched and Canada want new more in Marketing. we markets. Square we and products opening QX, launch also their new launched help is e-markets. our of Stand And April, to what that to we

looking also We markets. at are new

And in US. now later is this the we So January, third part expanded to of Spain. buy Square and functionality sellers brought strategy. the pay into our we Australia In

the markets in well. of our our in and that is product invest hard sure constitutes then top our our all expand priority. it on pushing making exist That markets, strategy as really and brand as in all we're awareness new So and focus of products

Operator

you. Thank

from question next Harshita comes from Your Bernstein. Rawat

ahead. is Please go line open. Your

Harshita Rawat

lending. to ask my about taking question. wanted Thanks for I

banks So the financial just a monetization you but it's for Borrow And for product. gold has the the know by traditional and to typically services, launched I tougher mine crack real nut fintechs. been

you product. the of about some the context how in lending the Afterpay have Thank last ARPU your For Can talk you. users important now of is expansion? you

Amrita Ahuja

were access funds Square to the we to product, those and would platform customer's start say very has we good a times part of way. our I'm Loans heuristics access on need pause able built our a what that Loans learning the do Square funds, to I part in today And key a which lot the we Obviously, own of our happy responsible a that in quickly with -- during a levels then originations early of encouraging in customers uncertain to data, credit here. rates results platform there results, strong to with relaunch. and to rates. to key fast funds repayment customers back been for that whether times. with of continued of or and pivot always around with lot a we've enable And pre-pandemic to and have respect PPP to felt the seen ability we've it's now loss access days machine pandemic

lot As also a way. of platforms And we've ranges across loss whether these onboarded a And seen another and obviously consumers have of like ability Cash App deliberate have earlier a have responsibly sellers heard credit been soft in gather you with Square another checks as things is as means aspect then, that underwrite want loan historical do that's responsible experimenting we key and product ramping we rates we of are consistent the Afterpay future. platform where in one the credit really noted excited to App we uniquely one But and as product data piece. or a you the that to platform. Borrow onboard and we receivables other another these the Cash quality about that that in customers or And for we're course, customers.

helps So as expand what customers eventually our to as product us you platform opportunity our within the key and and for customers of that an part therefore it's ARPU an as see other need well. grow use know we ultimately products a ecosystem

Operator

Thank you.

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

open. is line Your Please go ahead.

Pete Christiansen

social Thank to Afterpay Cash you a you. that a a Jack and of sounds a platform into forward strong the you here? does Block pretty made potential ingredients contextual platform. commerce lot algorithm commerce bringing vein, here App growth component have of to the it evening. Good Thank like all In the Amrita see year. references And make it you. throughout as

Jack Dorsey

and thing. more. inherently that also the it TIDAL, We Cash seller is is about it. is money someone certainly day. are step someone send And the inherently send that foundational obviously request do obviously, which people one store think network We payments else model, that's there's the Afterpay this make very downloads recognizing within every acquired the social. at employee at very social customers base person Absolutely. we we well the call into App to the and is built effects reasons one that A is a least the to I payments and sure of from that app a get There's wants we the on App that of weekly; Discovery XX into they company that is very, just the a those been just a have sellers, the that in app. and as something actually we App with side, the lot networks of benefit think top is reason mean, We and very within of fact think remains social Cash Cash another or lot tab talking that layer. pay there's within base the number

in Day. really around to the going five We're want we've the has this all And we that lot see we really we to are in our And about five that to tell the a is those you and the on I'm all in actually the deliver XXth, to excited lot had again app service the architecture story. chance customers talk to our years. changed world. sure reflecting first this a how So a at time make years because in Investor

had even I App a Cash slide. mentioned. Our don't was it barely first Investor think Day

but one and show ecosystems are power we've proven is newer the our not model only connect this that audiences to we to So we've in serving that even opportunity we how our massive bases. and audience ecosystems is grow customer add real can And you, how newer how grown actually these they two. new scale

really important to but part story the excited get future. tell a we we to is can't absolutely of really wait and So think the into layer in the social do it, what

Operator

you. Thank

Sachs. Your comes from Ng line the of next question Mike Goldman from

line Your open. Please is go ahead.

Mike Ng

provide very you little more by, bit a the the was wondering in question. your Card about driven profit Thank growth afternoon. could Was Thank for Good app? Hey. in then, color the, much little quarter. user gross you just if you around largely Cash instant transacting I the that you quarter deposit increased And spend? a separately, talk bit very in just much. could or trends the strength

Amrita Ahuja

first into year-over-year jump quarter as seen on in look heard on find strong here. quarter increased you Happy you CAGR growth utility really three-year XXX% Card Cash customers the astounding April. the to Card XX% we've In in Sure. as and a basis when here, first grew growth Cash

the Cash in Cash said month. actives past Card we've one use about, in within our each monthly As of three App

actives. fast into really new groceries, customers food, a overtime restaurant, and broad-based that utility, utility are expenses drives increased utility strategy spending retailers, XX it's retailers, broader big we not addressing obviously million to on we since daily basis. then. but the traction their ultimately a monthly have December, and said found from strong weekly to part had Cash platform teams seen grow of everyday box to of our actives continued Card we've what where And family members is about As continued here. only in And at It's broader where customers discount

product Cash once that active also your We direct you of you're Card see deposit a into products we more mentioned top and become likely the active to more meaning a March, inflows frequently in Cash X.X a to instance of Card attach deposit you're use I its likely are already of App as more month direct in builds for more had active. as Cash And if because you. your you direct mind have Cash to Card coming million for other become likely a you deposit active that

on for the trends still it's So both of these. early

runway direct an daily see attached and then, continue as frankly to percent perspective, increase tremendous From well. both. to deposit deposit For here Cash Cash a monthly Card actives App of is, as as of percent utility a and we the a we of Card instant see traction

it Of their across platform in App. money product Card. products that course the take like there's revenue see is these products and diverse the money Cash products. outside set We'd there are growth our Cash continue like use and -- to to use cases on a in platform. streams money course of to a for love utility But outside interest within And which build multiple keep of their to customers need strong in but of to people of we building diversified move

on dependent not any we're So one.

And so our customers. our we for can utility increase

Mike Ng

the Thank for Amrita. you Great. much very thoughts

Operator

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

Your go Please open. line is ahead.

Ramsey El-Assal

my so update when much new strategy this a give out are the obviously seller might us sort App out guys And Cash rolling we you Cash Hi see, new actively App rolled when expansion? it in questions lot comes you Jack in for you of geographies. and taking Amrita, thank of an geography, afternoon. to on some Could international

you of order or from need in occur So maybe Thank to us that? timing way overcome you to of give to any for kind on comments any challenges what or sort you. or types the of product, like other perspective, and/or a can clear organizational, needs compliance

Jack Dorsey

strategies make exploring people main remains is world. serving earlier, And so Cash priority for a App as global that service a Yeah. as well. There's we're service sure all the going this we're We're top expansion. said for team the around to the two I the

our sure to just new The parity first we is with Square bring And that like making products. markets.

We that moves. second taught based So learning And that out have inform and that we M&A. launch launched Verse. past customers And is seen next that through our the a will Spain US in from next has funds lot growth of us frequency the app over ability the lot between which of UK is transaction the a steady to and will year the the moves. our send also and UK inform acquired a called European financial mobile

is to all with to are to so. on But hard really is and markets that sure do do parity global goal way this App Cash trying want the Square push there's we're the we to products same paths ecosystem. we our So our that the bringing make to the of multiple and in end across all

Amrita Ahuja

in in here piece the access consumer terms getting with as Cash that well helps leverage we markets. as App brand App those it still Afterpay in markets of we Ramsey then And Afterpay bring US to us the the outside through can and Cash

Operator

you. Thank

Your comes from from Williams next question Jefferies. Trevor

open. Please go ahead. Your line is

Trevor Williams

taking tailwind from. expectations the you can the that Great. hoping about to seen I the question. quarterly the in Cash Taxes of an update highest the taxes guys of of assuming quarter color uptake seen, to But impact as Thanks. what seen Thank you was QX. well? comment be for in the to a App user get on partial being and isolate traction way much on for Amrita just second any very the you've your you then have percentage any this you've And I'm kind date. to inflows the Any cadence could contributor the that as XQ. base

Amrita Ahuja

Sure. Yeah.

here Let on you and give some Cash jump me in stats App Taxes.

these really service in expensive digital tax unwieldy actives. with complicated to use It experience twice the App monthly They're average has quarter Cash historically ecosystem. App as our XX% simplifies We in their into the as and for customers for and direct the are in used Cash X.X refund Cash January can free they're we filing As their of taxes those the sooner refund the to tax the you Taxes our It simplifies experience more filing which And the inflows launched selected compared to customers. filers you likely App been deposits we Cash at Cash who Taxes that have get of they people million with season Taxes. App. find paycheck are account engaged App Cash Cash know first Card customers. a tax depositing end noted than had driving method. more if And their the platform. as App

tax seen been the the more the seen piece We of Cash in that quarter. broadly. the It's we've App. has first have driver the again in season inflows that Cash And of App in a for always inflows into us past come

it provides have what historically Cash necessarily customers quarter is Taxes the easier. making it's we've seen. value to So say And I wouldn't banking broader products helps awareness But the to our broader past the a that's that this platform deposit. to for our ability for to bring different than we and what of App seamless them does to even utility deposits suite them direct that that's integrated in

Operator

Thank you.

comes next question Beck Your from KBCM. Josh from

ahead. go Please open. is line Your

Josh Beck

think and accelerate has had have seems Certainly, that wallet Square, there's you Thank you it question. for potentially BNPL wanted put. a good of much to being certainly Obviously, little Block assets ask of bit energy internationally. capture. with unique for think lots in-store creates combination larger efforts the a the I can more space. taking Afterpay It the portion that. that of this you really success I with like I Obviously, about the the strategy

how curious the that driver So the will for important see BNPL on be component as you just segment? in-store for

Jack Dorsey

the the say you in When people person you -- to in-store actually store mean within person? being present

Josh Beck

Yes.

Jack Dorsey

Yes. means on mean that about boundaries are. -- I focus our thing beautiful don't regards I think models. We to the with any is our really we where have that customers omnichannel

the through or or experience that solutions work a online So a sure later be phone Africa traditionally order throughout. make we e-commerce. pay to wanted of that now on should And our less and have the lot the offline everywhere store whether and at focused buy more be services same

and So flow. behaviors tend I ebb think to these all

their allows their the offline e-commerce it It activity want use just We vice the a later make in to lot flexibility on and Afterpay is to ultimate customers the so to of the are that we sellers more You make now and in functionality to And a more decision provide matter sale. sales. And because help customers see then you important favorable doesn't versa. we sellers. our where to us and case quickly in our pay them make allows want act to their is very reason see way. sure buy

a around them And as App. ramp-up of Obviously of their to offline do can our we we So but see we people Discover more and online. strength we a off-line in activity, as to certainly expect that drive merchants at online we'll the tab Cash lot with that lot neighborhood. use within also experiences experiments

before apps. certainly far bear done not that's and all a think special, to I with our I cohesive bring our services simplicity been all as we to that the be of to unique extent and hasn't of in as really way really know

Amrita Ahuja

And just add to that Josh. I'll

becomes the flow millions for with our there's of it make platform think between rates higher Square as about in see You've in grow because just are platform platform about as across the the part their that we not too using past mind this outside US omnichannel And of access that is something established Zealand as there how quarter help to omnichannel online like we and in unique presence for and consumers of consumers last but more Jack heard talk in-person the markets how them Afterpay both we cash increasing complementarity of it who an they well us across and the terms what now And I spoke is purchases. can how their we online, New online-only online Australia also in-person. Afterpay becomes what top that pay that and later in sellers transact think is US manage our and see lot Afterpay in-person. a a that buy to of at they than

Operator

Thank you.

Bank Kupferberg comes next question from from America. of Your Jason

Your line ahead. go is open. Please

Jason Kupferberg

gross growth. a If wanted I'm App levels to metrics to in I June metrics. not guys. relative and April the April year-over-year Hi. quite a GPV get come both those year-over-year year-over-year of back Square easier May the couple the the Cash profit to just and bit actually Thanks believe mistaken comps for specifically I growth

quick the of assuming reasonable that growth levels housekeeping off clarification during could significant no comps accelerate against macro OpEx So growth a April the is the easier ex-Afterpay. to just the And mean for those it balance those year changes. think on I then quarter?

think you. I less Thank was I said Am right last now? million billion. that $X.X billion it quarter you're $X.X so $XXX you

Amrita Ahuja

Sure.

CAGR what that say that government would more metrics year comps for right fund of you are would came disbursements is because of I April tough That's you're that last to three-year us year. significant about for those and from of I last orient looking I that March So more of April was April the do sharing part for in normalize consistency periods at that into QX around get to speaking time we're the do where here to the you're April COVID prior some some we see comps and between that those frame. where year why you

at GPV in in XX%. that a the about would I we're came basis you profit coming ex Cash April in three-year XX%. three-year growth again orient at on Square where Afterpay about seeing metrics App to So gross

again, still And year-over-year. so three-year for normalize help growth. strong the the CAGR some continued of And

experimental the expected reduction these pacing us second newer is for on The pacing OpEx non-GAAP the investments OpEx minimal The it's of of on spend as question of the refinement your broader was marketing here XXXX less for for the investments in decrease for Afterpay part the remainder based year. the the of channels. for expected of we some Block really relatively refine X% the just just ex numbers. context really than And a some about reflecting and

Operator

you. last for question, from And Deutsche Bryan we Bank. Keane Thank our have

ahead. go is open. Your Please line

Bryan Keane

Hey, Thanks had last year's decelerated The one some on solid the rate and congrats here. fitting The pace in me results on for was I growth in Afterpay. April. question off of guys.

expect talked you of some the XX% is think growth, I about peers. below around to going be a probably which something volume industry

integration much given taking to out risk guys figure And to that and here? would the out how that that trying profile accelerate is just we're in? So macro a more environment you that fully how the yet really number expect maybe haven't of product of from rolled into conservative much Thanks.

Amrita Ahuja

in have that at base, managing vision progress have when you life come are ecosystem and Afterpay. as consumer be and a a across offering at yet as points sustainable can is yet commerce will mentioned consumers Day of on increased the near and to Sure. think on Square weeks happy excited XX. a more you'll more building merchants couple all provide over the What think not I May strategy and when and We a on about Cash in And we on growing for whether loss long-term about. resilient much will scale you be would to long-term that think we're that across how Cash And our sides connecting a come have right, around -- about out the both and I then frequency or you be with seen think which customer the Afterpay, lot the consumers. for Square lot non-price what hear and lay here merchant term say we're to driving our App commerce vision. between we we -- of we think of pieces. each hope making platform deep have the different from consumer the teams focus about for so differentiated our we're you're we rates App merchants we over at we across that, differentiated integrated scale fully that to that our We Investor Investor believe really And integrated about is we're of that we others. work we Day. the really We Afterpay the have truly on you factors and platform, earlier, hear that our And those

Operator

concludes Thank thank in for today's program. today's you gentlemen, you participating call. presenters. Ladies and This

you. You disconnect. may Thank all

Block (SQ) 6 May 222022 Q1 Earnings call transcript