SQ - Earnings call transcript Q3 2024

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, ladies and gentlemen, and welcome to the Block Third Quarter 2024 Earnings Conference Call. Today's call will be 45 minutes. 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. third earnings our joining for quarter call. XXXX Thanks

with have Jack today. Amrita and We us

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

as results well information indication long-term at to These participants. forward call everyone not to contemplated a that for cause forward-looking on be note of take future of with statements historical filings be products, strategy our as call will except obligation will statements, date. materially update Reported from take call. include During the and today's our statements. on forward-looking fact performance. Please goals. law. forward-looking looking. considered to deemed Also could our offered us that those statements we SEC and of based also We forward-looking a on an than All Q&A, remind any conference the targets from could results results required statements, forward-looking discussions outlook, lending These banking as statements and our be discussion our disclaim during we the risks factors any of on discussion guidance other that and call could differ. those by our Further, are bank this process. are including to look this like through as to subject available should We statements questions our be uncertainties. this making to by Actual would of statements differ

financial our profit non-GAAP will Also, of the this substitute be are These Rule income operating information discuss GAAP framework, Reconciliations XX, for directly growth of Investor our Rule results. letter and metrics With financial shareholder the we remarks, intended on related gross also adjusted of to including and Within call. to evaluating GAAP a certain spreadsheet not are website. non-GAAP historical comparable these we sum measures are financial to in discuss measures measures investment provided our the we XX. will most during margin. Relations our our

entirety opening call website. Finally, this Amrita's the its Jack on An for our will and of shortly. available webcast transcript be in call on this Investor remarks being and is audio Relations website our replay audio

With I to to would Jack. over like that, it turn

Jack Dorsey

Thank letter for products, you lending quarter we our our address of all My risks methodology, how joining competitive our us. shareholder this and ecosystem advantage. explains

Square simplicity. now We are through cash up focused transparency access later technology, by pay with and loans on and pay increasing borrow after better

the have yet, letter read details. If for you more please it

I'll Amrita from that, with turn to it And over for highlights the some quarter.

Amrita Ahuja

Thanks, and for growth on strong a was Cash third We income the in improvement operating margin Jack. delivered increase EBITDA a Square XX% profit $X.XX the basis profitability Gross highest up delivered significant with company growth adjusted and and year-over-year, We dollar quarterly billion, for App. basis. year-over-year our and profitability quarter. during with XX% margin across ever results a for meaningful XX% adjusted both on

$XXX to free ending September, months. $X.X compared prior flow months XX the adjusted in million was For billion in the cash XX

guide we guidance we gross the outlined full in our have we have XXXX, year on and maintained income For EBITDA, operating adjusted profit raised August. and adjusted

gross the profit growth billion fourth of we XXXX, quarter expect year-over-year. XX% For of or $X.XX

Let's dynamics. few real-time unpack a

October, quarter, In growth. and third the underlying GPV compared both growth in improvement an seen global we've GPV global we GPV for in year-over-year saw Square, U.S. higher trends showing For recent with months. double-digit to

momentum and on gross strong rates paycheck Cash profit we've improved App, deposits. attach on seen For

out modestly growth a Cash shifted a GPV We and compared transaction new we are App benefit discrete impact that to delay App, a segments. now to at Borrow from had profit in stable X of quarter, a improve onetime growth we expect expansion customer cost Square, third partner. fourth the in Looking the these points. quarter few into are In our while guidance, XXXX. gross business in we to trends expect And there the items Cash improving, in of Square land underlying benefits by to about both

Our adjusted guide attractive invest each for income App plans the sales fourth into in quarter business operating reflects economics both XXXX. Cash as growth and Square in drive we a marketing for to in behind step-up and unit

of to full our initial and updated implies from X XX, margin XXXX and points Rule X X guide, year Our points improvement compared X from XXXX which of compared a XXXX outperformance to growth composed points outperformance. of guidance significant points is

in year, next we our provide while into to expectations wanted preliminary XXXX. for still Finally, for are we the a planning view process

shared previously, we operating a XX growth Rule in composition and gross least with adjusted reach we at of XXXX of mid-XX% plan income As mid-teens profit to margin. a

growth XXXX gross that momentum We block. profit consistent of at target, in expect broad strong across least driven by XX%, with

recently half. to initiatives of soon, them of driving number to and half first through year, a second expect we compound the the growth year compared in the stronger or launching have launched the We

next expect higher where XXXX. exit than XXXX and We we improve end rate to year to growth growth GPV meaningfully at a

returns, the profitability the side, be less attractive growth in year next pace market. this particularly as of although basis on On an invest year, around committed operating we we're adjusted margins than expansion expanding to good with income opportunities we expect to

execute stable platform, seeing and in We're rolling experience to We've environment our new in will XXXX. We've in rolled expect make XXXX. year-over-year and momentum seen brand and sellers grew Square customers that strategy a in point-of-sale a began launch sellers XX% sales out performance order enhanced innovations Restaurants this growing sales. new and partnerships and we're this in ramping to leveraging field more and experience Square's product our for Square our sellers a marketing our available we number to like hiring, and including Our preauthorization. all as scale We're of quarter more testing with to sales. bring sellers in new also success assumes we're investments now than and app features of third is single early based on the signs XXXX. tangible currently for and out guide We to in on momentum business broadly our macro the

We meaningfully efforts into other next will go-to-market be these more year. scaling and

App, XXXX we're to go-to-market brand drive transform to actives Cash to when Cash For into awareness alternative into on App we Afterpay million XX and performance cards leaning cards incentives. about credit deposit spend marketing, better cash paycheck across in Card. app launch We're a

expense XXXX We and personnel, overhead structural have in across corporate costs by focusing driven strategies performance with operating and discipline by our costs.

customers. improvement our upon we and creativity to serve breed in build have continuous We We intend in seen how constrained drive execution XXXX and beyond.

With back portion to turn operator it the that, I'll the Q&A the to call. of now start

Operator

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

Tien-Tsin Huang

GPV ask to I you're the the accelerate and that on on that a side, U.S. expecting Can bit hear blocks in the to wanted get us next if that? Square you to building are little on to give there year. you growth visibility mind. the here don't encouraged front more to Really just needed

Amrita Ahuja

fourth to to thanks current what growth quarter relative GPV confidence seeing much say what we the levels into the see we're start expect improved modestly us and leads the in on Tien-Tsin, question. from further I'll and third quarter to growth XXXX. for to perspective, acceleration from that a so the in

of growth X.X%, of just while with all, and XX%. is from a -- third impact the September, X.X% hurricanes second at start saw, to the And obviously, weather the international saw at there, end in about strong quarter, quarter was we saw the at what third we U.S. X.X%. in first some which So growth modest growth modest in the of we the was moderation quarter

the we Now which we've we've go-to-market room And growth square of since prior by year-over-year ramped GPV, as the each points has at period, know week this of growth a already and for since compared seen percentage July. month seen customer in improvement seen in GPV initiatives October, year-over-year been We're we've same-store to also that U.S. markets improved October. we couple has seeing in growth adjusting compared X.X% through verticals. by look across day in driven believe QX. been U.S., then, growth differences growth early We it's U.S. improvement. we've trends seen what And an into lot that strong the improvement Square in When we improvement, our an innovations accelerate a also though expect product our encouraging XXXX. see have on in into to for we acquisitions, international and to

Jack Dorsey

to us know, our We biggest the after as -- have to been Tien-Tsin. you migration. table as to orders we back for you was one respect the with And completed all just that our respect go holding really this us our like with I'll biggest features unlock competitors. stakes add thing,

and much on features point the excited local. to counter, features move have That But that one be to can from new migration but we the side, the also, merchant they new few things Square. is get real-time drive which others out through back be for discover and which we of platform a do haven't for both table in and to that ability I after do, we traffic faster into network at also is going merchants a over and the is the compelling spanning a I Square like to is But reasons sides for App drive building that features walk and and past. provides pretty ourselves the experience and itself, choose Cash capitalize had able the store making and the things that a will itself. to and the on XXXX store the and our App new in not companies it on new that effect back, App experience of allow both one unblock then products. around to Cash think we in-store where most which feature and We on we're drive they amounts that to multiple this because neighborhood, to how of sure Cash these out that think to we actually tool this about it is customers network allows place. the the is build interesting for We're people believe sales everything verticals, first already the focus to is for and we And time, sort orders really and discover build now that. have Cash that to to means So drive of testing area unique about time, and then ideally in new cash Cash would for stakes for loyalty Square been traffic great get access came that App people been build And merchants. have which and a looking a in these foundation from can a this way just merchants great to really can App competitors they the omnichannel like it we've

Operator

Chiodo And line your the UBS. comes next of with question from Tim

Timothy Chiodo

Great.

what finishing did then just were in So in-market your talking local remarks, you mentioned Jack the you on of sales folks. posting you line we about some this on migration. Amrita, noticed orders that And begin but hiring the with the job site prepared

team. salespeople. time we So of overly the that local number as these that of seem postings large, job be initial the in-market much sort while the stated gather so more job specifically very the face-to-face, this selling people description we noticed didn't XX% will And

So announced I the more plans one, hybrid then outside shareholder, for lots wanted approach. and a to see mentioned of even And the expansion? that you could U.S. an the across then, about, partnerships little if team There's just to initial broadly the in and of distribution you talk course, whether bit ISO

any I So would that appreciate context. of

Amrita Ahuja

for how for and here that And our see opportunity of but thanks I with that see sellers. we X more putting our that the drive we've traction field we from some about quarter our back us and is new retention big sales dedicated With in next for the obviously, encouraged to of of and of ramping team as we sales we that a us, pretty markets on not we new brand one of existing from how is year. existing second sales of one but moment. this perception, sellers made local field a hiring on also opportunity putting field is now, in and get With respect continue note, key value sort come to strategy sides. started is even productivity Square, broader first ground on support we you that, volumes sellers, a our respect both opportunities reps we that which group broader hiring drive question. some pieces in to here by key the new really market piece into driving by we're and obviously our lifetime our then Tim, have we sellers, can plan on, sales only the sales do hiring, in motion on. have marketing helps that, and I'll think partnership resources people this also fourth to acquisition

drive healthy this lifetime that On the we generating periods really these sellers can larger have a opportunity and investments with for existing is tooling XX% more year-to-date, that improvement serve a sales to of team annual generation, payback even new making as higher per and resellers. as XX% product hundreds cohort dollars like per productivity of see with drive in increase And retention incentives, and and our about lean contracts further. believe marketing efficient that we us. in with into sizes. with that productivity partnerships enable we enablement greater millions point value team, seen for standpoint, more to we more then things we're lead think rep from sales and we've deal us We to driven even upmarket

values, because piece really seller we're has this enhanced existing an team a From account as standpoint, job investing a really management in is driving key lifetime well good done our so a these that of seen cohorts to cohorts. Score. and Promoter have increase account through come cross-sell We've well here our sellers team that across in drive XX% as Net management retention

when got salon-centric. So obviously test with our tremendous well to a market as that across gives a international of see partnerships our at you as today U.S. more. well letter the that partners And going confidence of, the we T-Mobile market. to And got innovate the in more and know, go much as as broader diversified to just us announced marketing to strategy markets these We that ways we invest much to that's strategy we've in on how look and a involves you opportunity. back we've shareholder where in partnerships. different

Operator

comes question Research. line next the of Wolfe your Peller And from Darrin with

Darrin Peller

gross Look, the just what just the capacity may compliance it the -- infrastructure. your around of ability not impacting friction-wise, whatever you the for how in to industry, maybe on going I in and addressing it's you is, 'XX isn't it these banking this, And that impacting could particular, seems given then guess guys, in around you're regulation really backdrop good level. on Maybe or the outlook all XX% touch grow. to like tech banks, doing at profit may it see be

growth do -- implications that on So any sustaining help App there if is Cash even us understand strong subsegment and a level, if maybe into see you 'XX?

Jack Dorsey

idea with the we what's regulatory. an have no by just obviously, I'll to and going broader start there I just was saying, mean, election, happen

and react ahead and sure compliance and of and to things it. a lot technology all And we're important thing systems and a the engineering to thinking variables and to on way big control make reason financial on better is I the stronger in and discipline to -- we focus we we're come only then as really we to asks right better This company a doing we as But because we've on everything of that and with this evolves horizon and a approach exist year the see more this our is that more as I and reason the is think what instead the strong as to increase is functionalize the from on what sure something just approach. network. happening on that will really we the that leverage It's build we only the opportunity we're -- we think regulatory just technology goes human-based control the control. building more we technology. company applying with see X of and about made really of that focus day leading technology have risk. continue people focused focus. the by sure So can make purely by We're making A company. most what the are to how

Amrita Ahuja

in significant programs programs compliance to I'll And that of these all Darrin, to support diversity we technology, scale. strength broader innovate evolving and with backdrop And our well regulatory ability, that, machine add and partnerships. as too, Jack We've just learning got noted, to invest got of in we say positioned. our and that efforts. have truly the an environment, feel We've

We as Financial a Services. Service you great think term, internal with Square model, longer about if also our with bank have the optionality Banking

strong and across things, one of how we as And our our build products to business. have We Jack stack the redundancy partners is full payment baking look products. across noted, control we of that the

new we've number redundancy parts resilience partners So onboarded this across of we're key building as year, a our platform. of and

that's evolving think our XXXX about focus of guidance regulatory I environment. key your there. come on I how we preliminary an So question want back and a to other to piece

as we obviously, beyond it So I noted, in Rule that. and And at growth, to to least I'd mid-XX% mid-teens adjusted XX XXXX margin. committed profit as first, a what expect we sustaining gross mix are see say, that OI of of achieving

you've the and also our throughout lot go-to-market for a the preliminary across growth profit year. half growth Square a heard so expect innovations more down comes with year. second gross And So perspective App of consistent the as improvement as efforts to a on and at XXXX expectation. and product to next guidance progress of of the longer-term benefit that, profit through see result of -- Cash gross coming making the And that that XX% those call velocity committed this expanding across improvements We're drumbeat of margins of our is for with and least the that each of far from we're we'd the XXXX. and compound both builds XXXX we to in

Operator

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

Ramsey El-Assal

next gross thoughts more flow impacts those give on any also you mentioned us timing-related profit. QX more a Amrita, what you color to precisely might little they And items when are? some about year? Can in

Amrita Ahuja

Ramsey. Sure. that, Happy take to

and on now first, ] XXXX, [ materialize really it. items key So of QX pieces XX to of in to expect there's out the we shifted of specific that kind X

planning we're Square the also sort incentive the as we expansion we segments on costs, First, in year expect during talking example new land deposit of the on that expansion excited to expected QX and benefit it. super expect App we drive about Cash them adoption, some secondly, our customer we'll some which we've We're side. App some XXXX. started we're testing had use From Borrow shifted around benefits that now about Paycheck There's XXXX. delayed potential criteria. to year. to land the during partner Cash We've perspective, transaction that this Borrow now of early an a into of underwriting is that scale here. to to next to expansion would One

Jack's has retention tremendous As adoption. you and driving saw product lending and the value to broader ecosystem letter, by engagement in

from with in previously perspective but materialize the expected we in to expect some had of a about opportunities we to which QX, timing see XXXX. excited we're So Borrow, now

go-to-market all expect ramping to And to growth deposit up as we underlying spend level line XXXX. we a which expect product new direct and guide, as launches, October, across And that's drive of well. encouraging continue we into QX even bottom QX support to the year. with raising point-of-sale actives app our sort briefly single come, the Just our execution you've guidance, see the overall on strong like number to and continue we we're through October. more Card momentum our through seeing enhanced things trends healthy in noted and within Square across active to App in based next expect restaurant different around Square momentum per earlier, of to far year-over-year as heard, App growth of GPV as Cash each whether the Square, and -- preauthorization of signals, what inflows With ecosystems it's and which with into so grow Cash growth, in then growth healthy Paycheck on Afterpay or we're

QX. healthy early we're So that in underlying some even seeing momentum

Operator

And the Sachs. from Will Goldman your of line next with question comes Nance

William Nance

I the ask some are on stable. this wanted trends algorithm the Cash App and sort the thinking of trends growth expectation over or of can in quarter, guys to the just ARPU of saw year the relatively balancing about MAUs just talk versus expansion. kind you What's the you so? of maybe you And user through some were think I how next

Amrita Ahuja

can started I Well, get us this. on

standpoint an XX Maybe from MAU some X% million about the consistent saw growth from of quarter, where relatively let's up seeing end we monthly real drivers And the the with just what So an was year-over-year. are second that. of active, we engagement talk perspective. for

in drive first, longer million continue native growth to strategy. part significant monthly for In the to strategy So is growth our base active year our term, Gen that to and customers range. opportunity millennials as digital there. year-over-year term, we there grow bank a to that moderated room the in resonance XX and end near from we expect real actives. We've got deliberate the this likely we'll around well a do of our perspective, X of see with reasons Z growth sort and audiences, think more are There's

is First engagement. around our is focus

adoption, seeing in trend quarter As $XX share We're on our growth ARPU year-over-year. wallet. the XX% driving third we've on engagement year, you've platform. of driving versus noted a last put product of And $XX the strong with emphasis lines at

that App we've later, per a seen where App engagement buy transactions on like increase Cash Cash active seen Cash or products Borrow inflows come X%. Card spend pay in App where basis strong increase or we've see year-over-year through Card You and up now

to our is focus building platform, a for ecosystem work we're on customers a primary where working piece and customers as is healthy driving a well second build that relationship our with The strategy as promoting as enhancements new. critical platform to existing are healthy safe the banking to key of both

And do made we and And access adjustments have trade-offs limits us other in with growth. worthwhile of controls, around create some we're and new onboarding opportunities actives think trade-offs building we cross-selling, the trust those customers. enable for engagement greater so to and are some our flow, which as but terms deepening

Operator

And of your question Dolev with line next comes the from Dan Mizuho.

Dan Dolev

to as Jack. enhancing a want I we term, I products touch little entire are saw the nice Like think like a ecosystem different on of strategic letter. how lot bit as bigger shareholder question, Can returns to ask scale? these It lending looks products. lending a like the the you long it continue on about you

Jack Dorsey

absolutely. mean ultimately the Cash think in we I and then the Capital. this call apart. things Square early what It set certainly that Yes, did both one back is when per will Square Square we I App of launched days

Afterpay App think technology, with and lending make want to And We products. that upfront. guides we to understanding and we a their inbox have by for sales or deep And option sales to all increase appropriately our of kind invite really of getting means Cash our paying merchants. sized customers customers into it or want making very and to e-mail transparent right easy of to it how sellers their an to lead back we then customers it through just in potentially an having and Just loan our sellers took off. opt that about

to pay. no Everything exactly hidden There's going what So they're they is know fees. visible.

of do can your payback It with time part doesn't a really to simplicity finally, traditionally paycheck taking this they're a -- chair moved the use do payback what in buy over into that be sale, just cash a and the that's know App people need peer-to-peer access whether one where up experience, they new like using the whatever in feel you to reasons before of. to they built into the why have the feels simple they this be it stay, loan. and of you you Cash sales that And it part like reason or really people and for that's have the experience, something right like will hold to around the and case? specifically week So big it matters. that Because something right do, salon app is your built in then their right to banking because double started with Card. point So on

think exciting the putting Afterpay focused people for how which obviously, little the extends as I retaining through utilities, little, just entirely becomes these terms customer I potential. an the bases. the understand well. like forward. benefits, and flexibility want of the Card, our business have new But reason think today, our we is for acquisition Cash we The be by for And it of really Cash is Cash most customers download investors but and providing for obviously, great one to useful think us why we ecosystem as game on And as And in download it reason their it's in meaningful us. the and the SFS use we the it Card future, think as a then multiple. App want these Square it, people to business, point people about of are for location sale these a the products, channel these use whether why or that thing of for extremely enough, options on then including lot in that as changes products move the really App is App and scale

even especially back provide everything us. like other connection innovations we've our us since is sellers, features other invest utility more need a complement software, think get and building to for hardware other huge that We as there's there, across that a looked deeply to we'll effects migration, a for continue had completed for things Square for is streams side very entire the We new to Cash the else. be our the something services. can revenue and banking Square -- we to lot lead new in. Cash differentiator ecosystem points, we And both network it's App So side, also with or merchants. on entirely category also and to a But utility all new and App those on orders which and our whether that it

Operator

And your KBCM. Alex comes the next question with of Markgraff line from

Alexander Markgraff

had around App back you start in marketing Earlier the all in half. should Cash the year, incentives indicated

Just far the then comments all what the in seeing maybe efforts? us earlier base started has early space curious the Amrita, some activity more this bring active recently. sort among of of And so you're with just the for to learning that it your together bank extent levels considering around

Amrita Ahuja

I'm us here. started happy get to

I think of our bank really coming what we're seeing is strategy base the from together. sort

an of product a help which to that been Cash believe of app. from direct just kind the App tab Borrow encouraging of Money what's on earlier, We there. direct as deposit investment in-app perspective, here, number building still going a a version obviously upon. visibility out and experience, way focus letter visibility relative we've sort brand several First, deposit behind deposit, upon into And deposit. our we direct drive suite App us as on we the and bring direct do We're I makes our started XXXX to new and our drive specifically including excitement to we're maybe deposits offering the related benefits that. to within to early. that that and direct And marketing. Cash set unpack related that all the marketing year. got and awareness to piece rolled Obviously, Afterpay Card of all but a new And to think, step-up the a ultimately guide customers banking are as tools, retention, October throughout Card. fourth building to signs a of another out a our of actives, banks. drive built in free trust incentives, we're recently traditional quarter, about a testing as broader greater that. paper that to products new rolling in within direct see that of see key ultimately have our acquisition marketing, engagement bringing products. a is out paycheck bringing in heard, benefits also banking Paycheck as channels, our and and in our benefits which these direct offerings in financial and way benefit. with only in attach around And opportunity performance improve We of you've intending access we've these visible. go-to-market you'll go-to-market, the to of bringing build shareholder We're tools setting deposit, weeks enumerated scaling more I and ultimately referrals we're engagement mentioned financial is App seeing these continue money And awareness around high is, is this, with through we've compelling in uplift what's included in the intent increase we to deposit deposits Cash to in few and in up lot of to services

we're about seeing. what excited So we're pretty

even ahead. marketing, so but from lays it engagement now strong in As together what to with you far excited all an standpoint, earlier, awareness step-up without bringing we're driving see noted a

Operator

the next of question your with Cantwell line Jeff Seaport comes from And Research.

Jeffrey Cantwell

Question Jack. is for

from and U.S. been crypto Your little bit want a sounding company the the like on for years. pivot to on there's because in Square for in Bitcoin clarity regulatory opportunities ask and about greater I at moment, potential that has Cash away increasingly App focused many

might have first future. then in talk And a you So up just how and you that remind you in development? with Also, bit all clarity lastly, that regulatory Block's Can globally. you the that and you you how I'll us all, statement? capitalize talk usage strategy greater upfront. balance us of you U.S. and mine acceptance on what thoughts might for your general? Bitcoin to might of And the the crypto on more be kind Does what give do ask can that open you about for possibility sheet BXC the about adding agree little on mean maybe and much can here in

Jack Dorsey

Yes.

much greater rules what to in extremely the know it and I faster definitely because understanding be think common the we is, U.S. helpful will us allows move are what clarity because especially the

Internet do want because we can business. industry. want instead native Internet, only that accelerate market have of on much Bitcoin, we it have and push we faster market-by-market for only I our is a means and a the to money focused and If we currency a Square currency. the the App products reason that We're every we we today. And net move the want because and have can this offer Cash single -- to generally products to in positive focused we Bitcoin think native for So we're on the is

to buy, it terms but is that focused it access we're secure. want of overall to also making our accessible, what send on it So more it, peer Bitcoin, strategy more can more people in peer. We make on making sure Bitcoin sell obviously,

strategy. manifestation mining the having and and we big the a And for way we protocol Bitcoin of to payments sure needs an This of some make currency. initiative It's never that at to strongest a around trust it'd going it that into matter the future happen to point. there and security making Cash has it payments stronger it's no has is people it is it's every which necessary longer-term that day. secure is belief on just one. This including you is all areas this. And I'd possible attributes a network. has time. the make are we open to and terms help part on significant better having exchange, adoption number App this more actual and of a strongest our and the of participating day. get Because in Our the as every want and currency, the secure probably where ultimately, starting it be the a issues community it being Bitkey usable Internet of If Internet, manifestation behind and X every in down having to system in point Bitcoin, developer for this Mining it faster point

customize of folks that just an that. And think, a the is, system. even to main those their our is was were needs developing our and large of whether option announcement hashboard they It that deals, lot because But leave to only options And probably be of market that it. to of gap have a of mining there a that option. pretty on configurable come ASICs another huge We'll one entire mining. out quality another and Mining a of going buying specialized the second competitor other we do also fortunately. more of here. be one then quite the there's And is significant. version for Having is the a at is lot competitors, terms it chip been and saw one are you some can that or us can reliable, ASIC, these time. machines they in both for And we've we in -- there focus team because or

we So space will products look continue accessibility, across things, more the more to and to help work features that continue day. usable at it it making and and every X those on making secure

Amrita Ahuja

the Jeff, sheet. just And on balance Bitcoin on question about your

as on more the was X,XXX that. over of balance million the current the is quarter sheet, obviously, worth $XXX which value Bitcoin of than just have trading million. about We worth And $XXX end

Operator

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

Harshita Rawat

here doing? to from of Square placed balance yourself. in also on resources that and ask you some of against And App? also and your about about Cash efficiency I in year, further OpEx. which investments you Amrita, streamlining This you've of the do spend you came kind think objective exceeded your been marketing go-to-market how constraints want does below how here gains

Amrita Ahuja

see our people of against areas and are Sure, how operating that, building maybe key What a constraint growth. out X expense can terms significant to make a perspective, we returns a we've us of year, XX% next and costs do we affords against a base value key see in cap. But place. growth remain creativity in prioritization I quarter, cap opportunity XX% corporate our our tremendous XX% would for being to high we is personnel leverage across we with base, Harshita. areas we say that which to as around we And in customers. growth of around believe profitable strategies personnel our delivering long-term on expect those you so that leverage in expenses, efforts We under seeing -- X multiple our fixed overhead. focus got call of this at From still that structural sort accrete people amount growth areas least that's room expense go-to-market initiatives where

learning others run we perspective, in from and of can that investment sort as of towards services of of accountable our some our progress us reducing where our decisions best hold with to title the related decisions Bitkey, of of as put on cloud we're a as travel be customers the when Bitcoin, then have and perspective. for we third, our is around we dollars in It's have for made operate underwriting like our that our how own TBD some And investment that professional was and But demand that pipeline an as team which or products structural And initiative, many machine the there recently unit we XXXX heard at market to a time. we further ourselves whether partnership T&E costs areas our healthy an And our to of to as overhead. examine product also, to pieces that, things initiatives overhead winding to down multiyear effort noted a custody have self wallet against working recent we against each models put efforts. from Jack, software bar. like Secondly, key to see are corporate look around with make as to cost respect loss where high from in to possible. a Bitcoin to and our And our more entertainment. effort opportunities shareholder risk inventions corporate fit, we you size think named or to mining to ensure opportunity more able from letter, by our emerging one found we

further drive expect ourselves, to think our year. that's we margin how I ourselves high So performance improvement And we a next bar. holding and are to continuously evaluating

Operator

from line with Bauch Andrew next Fargo. question of the And your comes Wells

Andrew Bauch

on GPV know been to I I before, again. just it's wanted in but asked hone

You quarter. expecting versus in we're said but in only a October, modest improvement double of that was digit third growth fourth quarter kind

kind help can a of understand us why something you of only just instead more maybe robust. So modest

Amrita Ahuja

the of look, in Well, November. early we're still days Yes.

have as that. obviously, and November view a maybe more, months know December we'll discretionary related by seasonal get verticals are we typically and and November spending, So December. don't through is which are to impacted more yet on holiday and we more that

in we obviously you was already execution is, improvement we that improvement which to X.X% as growth, acquisition, strong third more customer of as October of the we update know on also points international all at in our what in XX% of the terms these So look obviously, did bear. U.S. as think of in even growth in year-over-year and QX a of in I terms opportunity noted, product there's year-over-year the We XXXX couple and more. own even to initiatives quarter. percentage But coming see that

Operator

question from next your Williams line Jefferies. comes the And of Trevor with

Trevor Williams

go I to back wanted Afterpay on Card. Cash to

of And terms just terms able the then uplift timing any it's more that specific around what you've a seeing. date you're Anything existing how anything more in from of the Card? for learnings early to debit done to broader you're launch in complementing share kind rollout? on spend of limited If just Cash

Jack Dorsey

back want results the specifically whole able out making transparency this functionality of and people sure encouraging our the then make lending to and And App because next going a using people but sure we is are about said scale experience where is for as short that. Cash specific not the see very too easily it opportunity the and later But we that to with simplicity of over time. and trust that access possible. And more also can the been this here the able -- it have be many the to have I correct, technology to about meaningful around that sure pay to as get is App we're simplicity offer make what We that like the The Card from on over ecosystem the going roll payback. by we to and now Cash the and of customers. the to scale think Nothing they'll on just the very, to Yes. see much date. and their that that Card focus us matters our

. So we're really to it and about roll can't it excited out. continue wait to

Amrita Ahuja

I'd product. going do App just we to Trevor, Borrow, you've what methodical with of us ramp add, other to seen we're And Cash more similar how in is with pretty and that recently products our the careful lending terms be and

heard subset make over allow should drive time, initially them year. retroactive the to product. to ramping, monthly after conversion they super you millions things be using actives Jack, over learning And expect you can a to here, first expect from to paying going As offer, effectively We're before higher for. we're customers iterating, to both excited make that we're eligible retroactively which expand we'd sure will we see that what to you want of actually eligibility turn a App do to time Obviously, And with we'll conversion, to Card monthly convert is as is next purchase but the well. try Afterpay on to and start then make we a as Cash test of we of our grow actives purchase.

an time. and of conversion plays and number we go with eligible ramping deliberate both we customers we eligibility eye out. out time see in being of roll So the how towards we're looking as use make then over The to cases throughout that terms that that conversion

Operator

now question from line And we of take the Blair. our Andrew final will with William Jeffrey

Andrew Jeffrey

I in think about Amrita, monetization at here me wanted about of Cash sneaking App appreciate how ask kind the I we end. to and you progressing.

drivers, Will, about trying contributor all, and looks of I just of whether deposit? interchange in different kind I'm a first think with composition I think, in to dimensionalize monetization. that the between imagine trends And like. greater becomes just today what particular. but direct the interchange that of

Amrita Ahuja

third more North again, Cash started riders than the more actives App. what's third our of partnerships, some marketing year-over-year. -- Cash which marketing. we've across prior XX% Monetization across App When up gross the new platform. momentum Lyft, surpassed spend Cash of Cash America enterprise well. more driving quarter, healthy both active driving Pay trends of will quarter, App in is rapid rate pay in What then GMV here. would different We're a in the basis. have ads driver primary of with I inflows of leaning terms meaningful stronger profit financial products. see the later after in and partnership monthly transactions into performance, profit per App active a now where active. Cash just we growth largest gross revenue adding of or has we XX Card products each marketing strong behind seeing than for XX% that is Sure. services buy say at drive these average daily XX% momentum. of What we We adoption App improvement as campaigns quarter. number all North And we revenue actually and awareness we and -- gross and recently in to some growing growth. launched platform quarter, quarter now growth, XX% Cash up with a an on Cash Borrow so our the strong seeing growth million were suite the year-over-year broader with in see look products buy App App third Card, Gross Borrow -- is -- health for become ads Pay, week. And active pay transactions now with And stream per on inclusive I marketing utility seen that that those and in act profit burgeoning our our And growth. drive in both doing spend with it, American customers an We activate an monthly Pay. active. And year-over-year App are announced growth our times year-over-year -- growing stream minimal driving behind our tremendous now Pay is. Card more merchants. earlier, there's at as dollars more noting how can than look for rates we're was up third really entry is we more here, they Xx pace Cash point, and also do putting be active It's this later, we're with profit

with So opportunity existing see Afterpay our we to think And come we growth products further around continued again, products. ramping Card, into for of I App new levers see like multiple Cash and monetization engagement, the and then driving future. rate

Operator

And thank your ladies concludes and and participation. gentlemen, you call, this we for today's

disconnect. now You may

Block (SQ) 7 Nov 242024 Q3 Earnings call transcript