Block (SQ) 23 Feb 232022 Q4 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Block’s Fourth 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.

Hi, everyone. Thanks for joining our fourth 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

addition During our call take will to in participants. Q&A, conference questions questions from we customers from

would may deemed will making and we These decide to All other and targets be shift goals, forward-looking are everyone historical of statements uncertainties, call. be than long-term this forward-looking. and also statements move like our on risks we any fact time. or We remind statements, targets that to of statements could forward-looking discussions priorities include these and to at subject our which from to away goals be

considered those by for future materially results of that statements. look as performance. to differ Please Actual our take be of our discussion our could SEC an contemplated the could cause filings with results a indication Reported from factors forward-looking the at a not results should differ.

forward-looking call forward-looking statements date. required note obligation any We update statements today's Also law. to by on disclaim of on the are information except to as this that any us available based as

are represent month preliminary January this for January February, finalized auditors. yet we for performance subject months gross and statements January interim the not the results February estimate to current and During of profit and we call, February. growth of estimates have not for provide will review our These by and our as of performance our our monthly financial

result, these differ from estimates. actual results a January may As February and

of available firm. financial information our or financial or responsibility results quarter. not January is February the been independent prepared financial been statement first by solely reviewed this for our information a the of public information has of preliminary the on Moreover, and comprehensive not preliminary accounting financial currently has basis and is This by, audited management. This information

website. are financial directly the our a intended discuss be this Also, are provided on letter and call. during GAAP These to Relations GAAP we certain will shareholder comparable Reconciliations in Investor not materials measures non-GAAP for results. non-GAAP most the Investor measures substitute Day measures financial to our

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

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

us. Thank you joining for all

last to sharing quarter, we our framework. our During instead ago. on our of remarks shareholder our you'll a last we in of of about earnings committed the sent out an spend find We'll interim investment our letter review hour call, majority that which

There are ongoing three two, principles utilize framework. standard guiding including customer stock-based retention of and number the for Number communicate simple that are to and investments conventions one, number to our on focused understand. cost industry business, growth; our compensation; and investment ensure three, are account

especially today. our single Block, at goal, these each and be must income. and aren't profit operating our on Using in an retention gross principles, path of believable ambitious XX This framework Rule investment of over adjusted we XXX% sentence. can of articulated one to is show in scale, ecosystems, meeting a a our

sharing full accountable. provide drive to want we to we We're this business, and the be today transparency into to how how want held

it take into provide means this we this achieving our we're operating plans why I share believe and towards moment what quarters, the important, business. In goal. so dives Amrita where before we coming we'll details a are moving how company for our is more to the strategies for today to into and wanted

right market products, and fit, right we able cross-sell pricing. efficiently customer ability It more the have support, set retain found a providing Our customer lot. services we're the we're time the of over into says, we tells right to to us features, a have and product we

positive to it In macro us. with due and retention. find in every shifts. Historically, have that the Cash achieve both customers period delivered may this simplest in App profit means offerings Square want our terms, stick to gross value our We and not

instance, recovering the before long the XXX%. over of we in to Square's retention be the XXXX to dip the annual we saw gross due For average But ecosystems next our pandemic, profit year. retention term, expect above

to economics, returns to for To growing acquisition stage our Together, complement growth the value efficiently lifetime to and by both customer of our journey. to attract and customer at continue measure aligning we'll the customer costs. greater leads appropriately of factor new We efforts our on customer profit retention, each ecosystems. investment, a gross of acquisition retention assess cohort customers assess combination looking efficient

Rule and now and each plus margins is for maturity. our at useful stages the growth businesses further a is A different of of of margin formula to and on and our growth XX. provides bar rates on with our investment believe ecosystems component today, efficiency. growth raise products Turning for we to We measuring profiles framework We in might for growth want the launch universal the enable framework different and which future. our this. framework, It's ecosystems to our second margin trends plus those evaluating of flexibility best the

to adapt, increase us or the to creatively discipline efficiencies operate pursue growth we slows, growth to this ensures about gross returns. plus we investments, to our also at new different with pushes technologies Historically, if critically more with looked framework EBITDA distribution more investments. us adjusted less. expected us It It think and accountability. models margins. do profit have And encourages create it When or to to using think forces

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and With this expenses metric, profit and certain compensation amortization. depreciation stock-based include margins will noncash like

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we be Finally, community. investment accepted in to a this to that by been that's have the easy communicate widely to way methods understand, using able want

what's clear the in a our clear way of each XX other targets They and we not that us both a to customer around more to as provide and balance interest with Gross profit world. aligns retention for working seek and what's the those Rule of serve customers investors. working determine more way are our and

the investments quicker around parallels. around in investment the enhance And our ecosystem constrain their ecosystem will world It quick our and help road Block us by will holistic grow teams dynamic one will framework and business decisions believe ecosystem our with overall. We move ultimately model more of to ensures others. be model this maps this each the allowing make in decisions to

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COO. to Amrita, our now, So over

our executing investment we're Thanks, against start XXXX for our expectations framework trends. with Jack. how recent I'll moving to before and

retention. profit gross Let's start with

customer-led XXXX, reflect line profit Square that our which We are is retention in and this. XXXX, with outlined. company, long-term retention is a target to effective experienced way an Cash and gross Jack compared profit gross In App positive to

increase from net gross but We measure is in customers as which retention the ecosystem. to of profit more similar engagement revenue many It's gross leave customers net use, from growth our metric, profit. products, retention top profit basis, line metric any other to net or main a churn on adopt adapted companies factoring who our definition existing gross they a

our We spend, in experienced strong gives ability look which broader for acquisition In our profitable to XXXX, health customers. alongside invest customer retention new the at assess to confidence acquire base to economics on growth. returns we long-term ability both the us and cohort of efficiently

of For of December, in Cash App, or less an to acquisition average, efficient a $XX profit on actives cohort in basis. XX as gross we grew XXXX, largest of cost we annual customers on transacting achieved monthly adding million our

pacing ROIs of cohorts year. annual App have in Cash greater at over less historical through XXXX are estimated achieved most one years, at and recent while Xx of an our three XXXX XXXX Our cohorts payback than or or

are an at Square, the primarily at of over areas. There cohorts XXXX at onboarded past quarter our For less. Xx cohorts years paybacks where beyond or increased periods four of target, estimated greater quarters of and are year cohort pacing annual over or through our in and Square experimental with estimated six an spend or on international XXXX because our ROI XXXX payback stretched of XXXX markets pacing our six our each expected

line We then our XXXX, pulled marketing back strengthening sales approach go-to-market targets. again now we're on and are In motion. paybacks and with focused and trend Square's seeing refining our areas in on these

drive Taken strong of acquisition efficient spend acquisition positive together, retention, models. believe and fundamentals these on we returns business sustainable

Rule of of to XX. Moving goal our long-term

adjusted plus a income our We benchmark operating by driven key will to XX% margin of growth few this path be areas opportunity. expect achieving

we're From started. a growth getting just perspective,

less gross We'll a to nearly ecosystems. infrastructure. our the in with each our than We of addressable growth across opportunity of to X% invest of share profit on have with much billion discipline sitting legacy landscape unlock continue $XXX markets,

our includes into Square audiences. segments new launching expanding For this go-to-market App, global customer customers, for approach and products across and new our refining Cash our

our We're than for for path of aggregate, less operating Rule to For the in to businesses, and look principles achieving in of X% we'll earlier same, ecosystems to XX. an a our though these show at constraining emerging sustaining XXXX these stage. businesses expenses and are investment

greater pace expenses, opportunities areas. our on discretionary in our and and we XXXX. key expenses. We company software efficiencies across consumption, overhead plan other leverage perspective, to drive of across our hiring professional intend compensation fees our finding margin a From the share-based estate and overhead and footprint, Within include real slowing data

around income Cash targets reporting introducing profitability time. disclosures segment-level about we on to Within over more bring profitability transparency these disclosures, and sharing on our adjusted our for to Square new basis an want operating intend performance App and against and more

this priority margins Our and at profitable balance achieve us scale, driving believe growth and growth compounding this. of long-term help we remains will

our Now look XXXX. for shift to at plans gears let's

efficiency Over of pace our years. several expense the We're operating our our business prior base. with and meaningfully in to XXXX growth on focused past to slow expect grown we've expense years, significantly and compared

a growth expansion and for to more expect $X.X point X XXXX than least in billion of of XX% year-over-year. adjusted margin We deliver approximately in EBITDA at

On $XXX and income an performance are estimates until modestly margin to rate our adjusted trends we adjusted our incorporates approximately operating of business run February. earnings for our expect This in million for basis, income we've improve year-over-year. the and of a loss current through observed targeting up operating XXXX

expand basis, In expect Cash a relatively XXXX, to we margins Square's we be to its while year-over-year margins consistent year-over-year. expect on App

recognize the our growth this cost within targets Amidst we XXXX. pull to and we initiatives to discipline While year, exercise slows, to for intend macro planned look stated is our hold expense environment. uncertain in uncertainty, If base. entering are this back an our we'll base we case profit for that

our we call, two shared we earnings As last are biggest in discretionary moderating areas. our spend on

First, hiring. year increase XX% change XX% Headcount our compared largest we the to headcount growth In to of to XXXX, a compared expect our by prior base. period, driver XXXX. significant the expense in up makes

last headcount of hiring we mid-XX% to expenses into personnel overall leverage XXXX. year, and of costs year-over-year, pace expected the the given XXXX back the range on increase in expect greater in However, with half

marketing. and sales Second,

to overall expenses, XXXX, this expect be App prior be year, to to across expenses year line drive in App year-over-year including the our prior item compared to in period. growth We as we expect XX% variable approximately marketing Cash grow faster. X% sales issuance business peer-to-peer of Card to consistent the we Cash portion moderating Breaking and XX% on with the relatively acquisition sales and and costs And the efficiency marketing spend. costs remaining down,

other Consistent back on quarter, continue with in last intend in channels remarks areas. proven and more investing we'll our pulling ROI go-to-market with

to and in data operating we As non-GAAP made last infrastructure. have and overall and in overall related of expense expenses only gross our include which of more quarter, costs up expenses, sales peer-to-peer Cash grown transaction is base and shared costs App These not our marketing, also variable one-third losses Card with and about issuance but historically line profit. platform

and Next, the trends quarter. an update recent on highlights from some fourth

quarter company a basis, month gross and approximately February, we year-over-year and growth be on first we overall for of a estimate XX% growth profit expect For this. be below points the to January to the reported full few

and March. reminder, reported growth the Afterpay, that of company XXXX which contribution lapping our a basis, be now $XX on our If and rate would a a on January to results, than are we which January BNPL of As should February result, In at XXXX. our million a we greater improving company trends. fourth to growth particular, And we XX, fourth January stable and acquisition we of closed stable as to compared from an basis, look profit see estimate quarter. of combined we see performance gross be for platform full in include first improvement profit in expect the company a gross January January for year-over-year, approximately combined of combined to the the And from growth company we in XX% On an in and overall February January a February relatively quarter. quarter XXXX. XX% rate XX% improvement February growth

saw We and resilience saw this in in Cash Square Through provide to greater strength with stable continued stability in moderation environment. verticals model February, rates discretionary January have see certain App our with ecosystem verticals. consumer diversity growth of continued the for other dynamic trends. some

some trends ecosystem. into of get Let's these by

allocation profit a As across Square includes a App. Cash and our reminder, BNPL of platform each gross XX% from

be the gross this momentum of reported on pricing we slow year quarter. For of period. has changes January to Cash expect a gross February. profit App, months fourth XX% our a and for to early the than as year year-over-year March, we basis growth profit in been strong In we growth expect continuation lap greater Cash prior App's made

which of App. continue our by savings, Cash fastest-growing introducing build products banking our to been out one offering We on has

for actives gross profit. Card XX% million in making up $XXX up in achieved year-over-year one-quarter and growth gross overall per the and active App strong Cash of App spend profit monthly than more Cash and delivered than more year,

For on and profit through January Square, reported growth we expect be gross XX% February. basis approximately year-over-year a to

verticals November, volume discretionary have moderation recent first the food growth continue rates trends, the quarter. for we in at GPV in into and US BNPL And in January our excluding in for we seen gross in Looking shifts a and primarily February. the trends macro year-over-year the retail. saw drink rate fourth Even beginning and line, of Square XX% a growth to with these is ecosystem, quarter and the XX% and trend profit PPP grow platform had expected these in year-over-year

first As nonrecurring recognized a PPP the of reminder, we for $XX million XXXX, profit. gross full quarter of

in January an Cash And in for growth on App the quarter. lastly, growth figures XX% Square. was also and expect I the we platform, February, update BNPL compared the of embedded months to which just noted and our year-over-year, XX% fourth Through an of GMV improvement

receivables year-over-year the quarter, trends. fourth remained behind basis quarters, typically seasonal and a quarter. losses both on X% have consumer the a are to on improved We and loss encouraged first around compared X% repayment consistent our quarter-over-quarter to below first quarter to manage though In for rates by the expected as remain ability rates, see been loss other increase during

all To clarifying this with found opportunity, path With to existing and ecosystems. the conclude, have help significant grow and that and opportunity, our our customers addressable us grow execute constraints profound new potential ability across is the we are longer-term creatively. responsibly our to can

we driving while to the investment thinking accountability continue feedback and long-term our With near-term product with be velocity, our of prioritizing teams will believe components loops. framework, paired agility, able

to open your we'll questions. it up that, With

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

Your line is open.

the framework, margin. investment income especially the adjusted operating like I much. so thanks Hi,

received. will I think be well it

leverage even I to So, I discuss about operating overall margin longer or cost if ask that? just for mind, we term? control about don't have just that operating focusing that, Thanks. you over. for maybe two just gave more think which on you the leverage you 'XX. wanted on know, ecosystems, how thoughts or the you broader beyond opportunity the and some side across should But talk Can

I'll start the Tien-Tsin. us off. for question, Thanks

is is long-term important to Rule Our just investment framework about And as growth. Rule is here of a Rule staying as of really helping profitable XX XX. of build XX -- achieving around

to looking that both make business, our and accrete investments for customers for in ultimately we're us our returns and So business model. can our for

leverage a opportunities to of to in are From perspective, we're key a that point leverage across I'd us looking for things increased find specifically your base. there question, at you couple to fixed of expense terms our that

hiring we're The first areas sales marketing. and that and at are key looking

market of meaningfully our in today, in our work out compared to heard ecosystem profit X% about hiring, $XXX were that way we're more in work, of smarter to areas it to terms them pace gross teams us, XX% As XXXX, ahead headcount address a efficient our penetrated you XXXX. to the growth sizable slowing to of putting we're the in opportunity and call a effective on product with XX% build billion across in work. be important in. their growing opportunity, enables their doing But in key We're about

in Now, of that of XXXX. XXXX, rating the P&L, that to more of through you'll the see of made see pace XXXX because impact hiring in into that run and we'd terms our expect the roll that in back slower hires you we how of half we're hiring and

sales around, we and impact can that and are second in customer is more again, of base and segments customer The that serve. our proven spend that areas our can orienting piece marketing terms towards future potential

about at each refining to find Cash of And area slow to to sales think and last Square continued XX% spend XXXX on improvement an sales is and in our motion across in for App. XX% marketing to were X% we So to this pace and expect I where us our marketing relative of year.

From estate utilization discretionary overhead to fees we're corporate real be professional going and expenses, other our data perspective, overhead across facilities from looking of and areas. an to of all to software range a

what EBITDA expansion point basis. basis, and margin Now expect X all that of income we expect XXXX or means an greater to operating is see an to we on adjusted expansion on margin also for see

TAM but go-to-market not term, of segments our going unlocking new greater that continue in the new our that's to XX we opportunities through take sustain, we'll building around and areas need we investing audiences enable in continue initiatives, customer with over long-term. build TAM the But sustain share reach, invest and And opportunities of new across ultimately expansion business. we're to through those where if profitable products to our to growth our over long growth opportunities, emerging just again, and each reaching to see motions, discipline continuing Rule

Great.

question Suisse. is Chiodo line of Credit Timothy from next the with Your

Your line open. is

I you. Thank a there. the little the vertical to Great. on given want focus restaurant bit competition

vertical Restaurant's how CAC and on on then have building the out team, At talked and you the feet you many Day, of we're Square how to to type sales approach? effort, further update from Square talking there. the the larger that sales about there, for give for relative an the a starting teams the sellers. time, LTV Was teams people of with So verticalizing offering. historical effort the go-to-market themes to the could about look At was May progress the the street inbound and upmarket big move the Investor the you the one build-out XXXX vertical of the hoping

question. the for thanks Tim, Hey,

our about approach let's business. go-to-market the for Square So talk

marketing XXXX. our we international. think payback. sales returns. spend our We past few our continue the maintain as set And results sales specifically years, with and year, the to payback to being that years and encompasses and we've of that we'll Xx here those have across four the us I that over as that dynamic be initiatives approach seen blended the mentioned in throughout the over across the full you ROI a obviously six-quarter to as environment targets and across and in And well dynamic we costs US both rates, look And read

a team capabilities sales but to led not our the with-embedded-financial-services only sales We're building And inbound our into software Specifically team. building stages capabilities. team. out this has also early sales in of verticalization efforts, we're outbound

time. this in now times key where team, sales and win more we started So and to areas and across to the three verticalize past, we've generalized expect services retail of restaurants, rates benefit cycle our had deal a over

sellers specific to From contributor targeting our we're that also outbound time around team right and better message. a sell be sizes and seller perspective, time. our data the with sales we over enhancing And be to enable signals to those outbound the expect to at able here capabilities right using acquisition an bigger our verticals reach

in sales. by have sales mid-market what Now BNPL. we're in profit traction gross processes than gross profit, but that this was is building quarter continue mid-market the is building through BNPL. and to twice success we'll a excluding up we on we're seeing fourth iterate our and grown that upmarket sellers that and reorienting multi-year our the team, the up fast are on Mid-market journey on, Square XX% our And we've tooling, had year-over-year, as total excluding encouraged the

go-to-market these So marketing are to reorient sales be team time making pair the and to resonate, progress continue as and our more that we messages. with we'll starting initiatives over

Amrita. you, Thank

App customer, question Watson next [ph]. from Austin comes Your Cash

is line open. Your

recurring But within bill there schedule plans the Cash problem solved payments App customers. App? pay. so Austin. other if name just bank my App reason is direct recurring guess the deposited. my every is, App the account. use the Cash And bank had are personally, I could And Cash primary for payments as to I but enable to day. than other still yes, no paycheck for account to my this I Hi. get I me, Card app, Yes, any I love scheduling a I be auto my question use legacy ability Cash I have

more relationship tool. seeing for our first your primary and have that. using more and we seeing it's of all customers. exactly what you of exactly thank as the banking Cash with We're want App of Austin, all, us That's -- to

and didn't are And Like to things that, for We're people with payments patterns. I'm that the broadest do always build. tend at have we and we more to across recurring looking we Cash be customers prioritize a friends trying it. App to other to we sure And as App we've -- more at the of to of seen Cash board. mindset that desire we're see looking going

or now, right focused sure on customer the or for are we're But just really starting account you've that's had savings a to whether basics make Cash making enable question one. a And of just limits super really, for we account with what that of placed we we it looking type every have, and easy bank a at you're solid the like onto like people. App rock

at focused been unlimited been we've focused deposits. ATMs on and savings withdrawals We've on So free money paper accounts.

we the don't on plans much. but future. some immediate But at recurring, have so in will map the it sure road So for thank you be any point I'm

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

Your line open. is

us EBITDA little could it seeing I'd on we're through into case. gross if love scenario. to in specifically it's And I bit then macro you little if embedded. billion more of guys. the on backdrop assumptions $X.X around just to way. any growth your to XX% your note, give guess frame XX% just much for just relative embedded base case the know base you in macro profit that Hey, pretty to confidence great in the that But hear that a could Look, a more color February, January rates

cash Thanks quite think picture of some bit, love out revisit XX%, Obviously, to of Jack, drivers just of of a sustainability App. medium-term called on we'd and card bigger a again was But can just Cash a And Cash hear now sustainability Card of you question lot mix? more the XX% with I that. then, we're there. on success just seeing the guys. the

for guidance questions. with our what to Darrin, Hi growth the and XXXX off thanks guide. assumptions I'll our in on are start that respect EBITDA

on So year, we've you. XXXX first, share we've rates, of which is early is and this shared what seen Obviously, I'll part but the also XXXX so far. our what QX our with growth exiting based outlook

continuation moderation where From for a faster some stable you've verticals is few consumer a to growth macro than Square, relatively discretionary App we expect Cash we related a for versus that QX Cash trends perspective, App which seen Square. grow of believe are in

App, and to we framework expect our then customers Cash growth App inflows of to monetization continued which rate, see in year-over-year the is think amount our across to we expect see active, -- active bring about when of we those inflows Within we per of Cash three pricing to money onwards to changes slow some expect App profit March gross the lap drivers and App last growth XXXX. of Cash each as during the of some QX business Cash we year. see for made do We in that

to a plus and business, our significant focus, XX% heard so software sellers, the motion driver's has continues as we've omni-channel refining grow From Square We've sales now the marketing portion integrated our Square payments you've perspective, Square's continuing profit, gross needs. ex our and larger seen of become seen with far building of to and today, be take advantage upmarket that the growing out in PPP. of success

strategic sales business. Square our for on our refining and focus areas to the marketing omni-channel, continuing so international around and motion And upmarket,

see profitability growth of nimble as a on the meaningfully, disposal focused by XXXX to we ecosystem, we we macro levers levers. and at and be from ability the pace efficiency heard, you've in slowing From based here. And those perspective a what also our a are have with on number perspective of we're

the App said, business. now by is a for continuation profitability years some margins which Cash of that expect expand, improving ecosystem, Cash really of Now to App we

in And be last in during it's Square outlined we our mid-QX. margins expect of given to already the related to some partly consistent macro high year. those We impact some year-over-year, due more starting moderation to great Day margins, detail incremental of Investor growth

slow, But as growth you these profit hold while expenses. for pull a number to And investing back I potential we levers we in still and have of to scrutinizing of the the macro we're dynamism, targets. as to see we planned that intend prudently noted, have noted, if midst ability

your second the clarify to of question, Just Darrin? part

of revenues. mix pointed now, as out, almost the …but you of it's guys XX%

the again what so term business to that? What's keep do in of well? growing drive it about And to going Thanks that force terms longer you of driving think guys.

I'm Are App or you up sorry, a Are about Card bit, Darrin. you talking Cash other on you broke of little the mute? banking experience? parts

App already just Cash for general. more how was -- a other see to kind lot figure Does gross it growth you of out I strong drivers Is have what App has it sustainability Card given to drivers? How trying Cash go? in do contributed? profit

can continue adjacencies, for the -- complement another. financial important utilities inflows, I aspects thing that opine that to deposit, mean, the to services us just Amrita functionalities is in certainly that most ecosystem to adjacent as all But direct start around these off, to one App to there's everything think building. Cash I doing Yes. we're we're I And grow here find and well.

of them one gets is people really more, to there drives make ecosystem other even to sure And able people our and -- are like into resonates that One quite might App them in. find Cash easily, cross-sell and the Card. like and be then we're that the goal services

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obviously, you've I'll million Deposit, App XXXX. streams App annualized FIVE profit. Darrin, in as Cash add gross in has or that, more Cash at heard, at just $XXX million revenue Instant now $XXX Card,

banking Card other an App products. Cash as smaller, Borrow several others Card we're Bitcoin about commerce in and even of App and scaling. monthly of Card Card, transacting actives Our about QR stream, on attach that everyday and App increasingly we're with within business broad use at of case App our revenue overall Cash a wallet that Like in Cash with XX App but XX% accounts monthly Cash App million a And monthly Pay, actives customers to are is example, basis. seeing transacting actives Cash a top That's payments. on Cash December. terms And

it ecosystem, cards, our There's one particularly through we to us, example But commerce more allow wide that, that is multiple there's it banking to to a launch of longer-term while example point focus us, efforts It's aspect family, gift out spans their an there. within Card, spend can peer-to-peer peer-to-peer a there's App of launch an ties elements, Card. utility gift with a for adjacencies, of ultimately of development that customers is product send of recent a for receive a to our and aspect, range promoting Afterpay about who from Cash and in Jack's maybe then recent card pillars. our and where that's call friends which community their merchants product all a a Cash and App

adjacency. There our Cash on example to just App, our in and for money an customers savings numerous other that people through you banking up creating yet an a our debit January of products, and into is and number features that's App a bring which roundups card offerings. accounts, and use like through an for experience others we of Cash another our link end reason and which launched of are is So, fastest-growing everyday

really much. guys. Thank very That’s you helpful

with is Ellis next MoffettNathanson. of Lisa line Your SVB question the from

open. line Your is

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As the quarter, from in off with why last Thanks TBD. follow-up. Title. bit scale. Yeah. But we realized started now? unique. Title are a and the for are new Investor in or acquisition TBD added an that level, like organic to here also a Square. and high ecosystem we we've whether from question. two talked other start we fairly I'll at just such our other massive comes And we the of Day, Amrita like just this intend create them Two And can one but is like beginning. business our not We're -- And Cash an ones as ecosystems, creation App, called

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to clear much transparent more you. and it's So

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how Yes, actually the particularly was and internally. disclosures for business our a shift we're D&A, external our running And what agree we with to question. the but it that Lisa, metrics. you profitability wanted and do meaningful to include thanks is and stock-based compensation We stock-based compensation align here targets with

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you. Thank Terrific.

of KBCM. Your the next question from is Beck line with Josh

Your is open. line

MAU. do Thanks ask investment into for taking the would about three question, App. up for in your for one That's one a wanted sentence. anyone. the and thanks also bit was inflows I all Cash to I The collapsing I be XXXX. pretty not you wanted said that much that per about ask of But core Amrita, to believe to philosophy drivers easy little

business, which obviously is to offsets lead discretionary some, which Card to metrics obviously, attach, direct there at cite assume But in the higher slowdown deposit, step assuming nice Cash up did are I'm XQ. going in the you like spend. things Square certainly really You a on least gave I had App at

curious sizable that's changes be as items Thank driver little other around rate. mentioned the I'm about bit pricing just look the or thinking the you should monetization hear there as But a to as drivers So a side? impact. you. monetization as Certainly, Borrow bigger forward, well the we about had a and we

Sure. Josh. Thanks for question, the

talk more in framework App. three we'll per measures, inflows So Cash And your let's break our active, detail the a bit to for of on one little down inflows question.

growing XX% greater monthly That in network with faster. importantly that's even So the increasingly and to us to with new peer-to-peer actives starting effects, acquisition actives leveraged we've first virality year-over-year, time, our inherent December. grew Over customers. enabled XX transacting in enhance actives, and for daily drive those weekly product adoption and million marketing

on ecosystem Cash average. use a within million that I actives case. a those more an product our more out maybe adoption using that's it is growth important I the of becoming on more the XX App weekly and million two of are transacting think indication basis everyday even And think the product what's of three it's that and than of XX

per we're active in out. as inflows that mix inflows prior two at seeing and quarter-over-quarter $X,XXX in environment. for that's Ultimately, active. us. period how inflows of third active, And in dynamic worth basis of time, here macro stable lapping encouraged disbursements by terms over we're per despite healthy we And fourth grow about on I were broader pointing the the a the opportunities a think per uncertain the government to there's That's trends year-over-year period we shift quarter. In relatively despite and think the key

So, products. both first, inflows product adoption. more launch new We through our existing of and can drive the cross-selling products

into people see money inflows Cash money deeper focus can customers As ultimately leads for Deposit the around. bring greater be example, money number continue Cash deposits, peer-to-peer of ways it will inflow our twice the increase Cash move on to actives. for to increasing products the generally of move App, to channels that other see actives. for easier Direct the more into into as money We've that noted actives us And App and in inflows Cash We're in services. we paper of your you and Card take a also App which make the to within and amount up past through you per funnel App that financial that bring it

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inflows mix a see forward. may we per note that to around active The dynamic is moving shift third thing

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their rate the and ability is can third pricing of is customers, Obviously, products. of -- monetization the monetization we component And mix our both the our inflows factor usage a rate. framework the charge -- mix across that of our

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of And products think of that entirety as We we for. charge we it about the holistically the across rate, some have ecosystem. monetization we think

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helpful. Super you, Thank Amrita.

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

is Your line open.

then one and Hey just I good afternoon. item one Thank have you for the question. housekeeping follow-up.

excluding you update I App on to give to App figures, the basis. us helpful the Square get January Cash Seller Afterpay Cash a Buy for App not discuss Thank Pay And pacing on things could but if all gross and February the profit of ecosystems, like and across Seller. also you. an only then second, just Later? integration Pay Seller, you'd Now, First, just pacing reported was those Cash wondering, it on was be and able

questions. trends the I'll top for QX Thanks kick line our so on far. off

lapped for growth which year, growth, this, last this full of I a you estimated February. for as-reported below year-over-year into few Jan move from of numbers two the as to of to we points There see the there year. sets expect an So are March, QX of far we what that's basis, what orient to. Afterpay XX% we've on we seen as course, first quarter And is is and think acquisition is so

well think combined at relatively a is we year that the Block far XX% you gross year-over-year a Afterpay is XXXX. we what improvement company January in basis, from see February, I year-over-year is this company profit profit look company million second $XX would consistent XX% and then the be QX growth a saw company to gross growth of when of so and for we which from profit in which quarter for combined as of the gross which overall growth, what way contribution to look full an on January growth at in combined include basis. approximately overall And expect perspective on

Within Cash strength on the see per continued we March, in expect active, expect changes. we App, inflows of grow basis as-reported XX% to a those, each at than an App we pricing in of drivers the Really rate active January more to are February, albeit monetization Cash as lap rate. and growth growth and slower

basis to see an expect XX% we perspective, and on February. Square January a in growth as-reported of gross From profit

the important Square numbers core ecosystem, ex on it's see unpack in to and going here further on BNPL what's ex think to PPP. the Square I

BNPL, saw in We So PPP QX. in reminder, softening just some discretionary ex grew as verticals XX% ex a in and Square, QX, year-over-year.

was PPP, Square, in same in for rate QX. ex January And the growth growth And February we're XX% for so of PPP Square, that ex XX%. ex ex seeing BNPL, same and now BNPL, of and

the are far takes that so ecosystem of and see the Square those we this across So some puts year.

a quickly off. to App opportunity the is terms with focused App. ecosystem look to area in but the do the We're make now, as paying to of believe Right We're is in still Afterpay We sure Square And integrations, as is search. it there, be obviously But fairly will merchants. -- that in going between do. in the to And Cash in looks this possible is this UI think is the after what in marketplace. we're that we're number lot iterate We the more continue us. of going then what just see one, App opportunity, the and the connection for we a but meet integration, massive on, early we place not we little a pretty started starting Tab Cash Discover Cash product some we're like which you obviously, to early mentioned bit pretty simple just with I Pay. --

So offers App discount at Cash customers who accept can merchants and browse and Pay. finance

in And a would putting much But together, then we'll continue position. towards the acquisition to better move more and the more that Square ecosystem. say integration, companies I and the we're

Now as really we've together. way of making need come to two think to served the focused trying how come ecosystems, continue to up what lot then build And between careers also with product TBD App I do namely more these their and things we're globally. and on for tied in bunch they a other well integrations there's that we're to And sellers and that musicians what in the same sure Cash as have to to well. they artist a

for thank This program. program. gentlemen, and you in today's the conclude Ladies participating does

may You all disconnect.