Block (SQ) 4 May 232023 Q1 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Block First Quarter 2023 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 first quarter 2023 earnings call.

Amrita today. and Jack have with us We

We before your opening this call question. 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

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

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

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

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

for April be may the actual second differ and quarter. not a these of results from may result, performance estimates full reflective As

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

XXXX during profit month gross company contribution XXXX. combined we $XX January company BNPL profit We assumes our also this includes the gross acquired from platform gross X, combined million call. will for of discuss and January a Block BNPL on our profit platform

of purpose Block from BNPL XXXX. platform our as quarter our million of profit a X, combined $XXX in comparison, company For fourth if to we gross gross the assumes October BNPL contribution platform profit fourth quarter XXXX, on acquired

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

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

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

for quarter, Last all going our us. we shared you joining Thank framework investment forward.

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western countries they ribbons. This cases region provide a than is as necessity, because faster such the protocols increasingly adopting becoming are open use money

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excited to to resiliency right accountability working about a be multiple as the times. comes how have we Together look to grow. challenging another couldn't more I and Block’s as together. provide will as keyword and here, we is we're many framework, positioned ecosystems one from our the through company value our ecosystems grow real what's reinforce investment ahead, positively our With

to Over Amrita. you,

Thanks, Jack.

the prioritizing expand the heard three now You've in ecosystems. and opportunity coming are longer years trends of to our advance term our help market we

As our continue serving growth long-term scale. at focus discipline, these operating we on opportunities, our profitable customers, we'll day-to-day pursue and driving with

our cover today. three that to to are related There like topics performance recent more I'd

strong results. an First, overview first of quarter our

year. investments Second, through of And trends April. remainder at the the we've seen across in third, a look our business our

adjusted in In first basis, in from quarter, $XXX of EBITDA XX% XX% profit quarter, quarter. up gross million strong gross the in with company prior On We grew the $X.XX million our a prior profit the the period. the from ecosystems up an first delivered year of delivered combined we $XXX billion XX% across year-over-year. during growth year-over-year increase quarter,

$XX $XX includes the million Adjusted compensation related period. and based was year from the amortization, loss in operating up income, which quarter, and first to in a stock expenses prior depreciation million

our that continued million first streams had gross $XXX across across a in XX and the we to Square our annualized Cash more streams profit, diversify up revenue also XX from App year In monetization We ago. or quarter, generated ecosystems.

profit Let's prior On first million of basis, cash the App gross each from gross increase combined Cash year-over-year. up year-over-year in of profit generated a an XX% company out $XXX grew XX% quarter XX% quarter. in get into ecosystem. the

each reached our monetization in increase of across March, year-over-year. per active, active, active growth and an XX monthly million We inflows of framework; component XX% transacting inflows year-over-year delivered We rate.

up Inflows quarter-over-quarter. transacting active averaged App up and And in billion, Cash into X% per $XX quarter year-over-year. XX% year-over-year first totaled inflows $XXXX overall the

Cash that in their on growth by App. remain into for App in Cash can inflows ways people in and which in diversifying bring money strengthen investing product driving areas active, trust adoption, We focused growing

platform, in was the modest pricing the including quarter-over-quarter income. in from quarter contributions benefiting fourth and XXXX, rate XXXX. was monetization benefit from X.XX% interest a excluding X.XX% changes monetized products in growth rate from a in of gross from X.XX% quarter basis, our profit Monetization On BNPL first up up slightly implemented from

Card. App driver Cash are Cash key services retentive build with Our us a inflows products active, help of our in financial and App relationships particularly

were Card of monthly March, actives, App million year-over-year one-tenth year-over-year. per active basis. average the in deposit March, scale In An In direct XX Cash monthly on up there X spend quarter-over-quarter Cash increased Card we XX% monthly continued actives. billion App in the a a $X.X on an Cash active, million and percentage deposits times overall billion App. X.X inflows as In XX% These in to increase March totaling or as grew annualized year-over-year overall $XX deposits basis. particular, inflows as paycheck paycheck of fast had

active adoption driven Cash deposit paycheck direct we've for App. those more ATM through unique recently, We've network and boosts. receiving introduced And their withdrawal free for in

set a on top a simple easily was customers. to way Cash gives and which flexible a feature savings customers this money as amongst balance. App This aside manage launched savings also year, and separate earlier our funds We requested

to January, profit savings in the as April. Since year-over-year. in it of added XX% of million generated end X first of $XXX funds million their launched quarter, than of savings actives the balance more increase gross an Square

Square up in profit XX% XX% forgiveness, up from gross first company combined quarter. the quarter, further loan the Square gross basis, combined gross a and in profit prior year-over-year, On TTP company excluding XX% was profit grew from

Looking quarter of Square's drivers at the performance. first

from First, gross to integrated drive these continue up with we in software year-over-year. products payments, and growth profit XX%

channel, By our in restaurants, channels of where up this, normalized we've XX% than and profit profit in person offering seen across compared vertical point sale retail, online appointments, seen gross rates our we've from strong gross year-over-year Within faster from channels online to pandemic grew growth as momentum aggregate. was levels.

larger on sellers of team, driving go-to-market pages support sellers. sellers. We of our mid-market for experiences offers to our specific recently website that The retail, those verticals. with introduced restaurants, continue also further and was we larger our and verticals on customized updated XX% home grow also to beauty efforts. offerings year-over-year. We vertical funnels which focused to are verticalizing software from sellers up profit demand across three our our website acquisition remain Gross key we order in to sales Second,

Gross strategic contributions orienting our omnichannel outpaced meaningful years. XX% expand BNPL international been continue year-over-year, square global remain a up top platform. excluding and our and focused upmarket we markets investments profit priorities have profit and areas to We growth gross overall in on in our towards Third, roadmaps globally. from recent Square's these in software,

These priorities and with and sellers us car enter have a our from which hit evolve business charge payments, integrated transactions our inside towards on payments, where long-term us create to or keypad helped proactively retentive mix software an amount enable relationships more sellers. roots

time. sidecar intend payments from flight year-over-year from during to payments mix and first quarter of the car As business ago. the continue two X% a over result, Square down for represented Squares gross Squares decline grew gross to profit of years to XX% We XX% related profit

to now within App for solutions Cash ecosystem. sidecar use are cases by well as such served our cash As peer peer also business

our of inclusive quarter, billion volumes. on January of $X.X XXXX and first improvement year-over-year receivables GMV, an year-over-year GMD consumer Loss X.X% the quarter-over-quarter. XX% of an platform generated in Finally, BNPL of increase were

update on April an Next, trends.

month of year-over-year growth to profit XX% the of quarter. for total remain the second we expect consistent we relatively gross For expect April, which

XXXX. April, at the A have year-over-year. to XX% ecosystem, we quarter first profit company dynamics compared the XX% we lacked changes in moderation combined quarter for Cash made the to as gross pricing of of App first of Looking the each month the benefit in growth grow of expect

combined XX% during first growth the in We the XXXX. XX% of we the expect more from year-over-year to benefits to grow compared TTP quarter meaningful as first company Square lap quarter April gross profit

Excluding up the TTP, quarter's expected moderating growth. combined with company to XX% is fourth XX% growth gross profit to for Consistent Square the be and in year-over-year quarter's XX% compared April. first

year quarter processing volume quarter growth fourth line when period, lapping growth trends the benefited particularly were started discretionary in in a which from in prior is to first see with we in While April verticals. Omicron the moderation

platform, For in quarter. XX% in GMD we first of year-over-year our expect improvement XX% an from growth BNPL April, the

for expectations our the to of the Turning remainder year.

Given our for business are increasing first the profitability this our year. quarter, gross profit in expectations the during we momentum

we quarter to loss the We the shifting operating deliver intend XXXX. tended incorporates for of EBITDA adjusted primarily some expenses $X.XX and of full-year million line first expect billion This to stronger adjusted during $XXX the on quarter outperformance the year. top we for in that had as first later

driving focused We and operating on operating marketing, hiring, with in overhead. leverage across and sales XXXX, remain efficiency corporate

year-over-year operating For we adjusted the both full year, continue and to expect EBITDA, an basis. improvement on income margin adjusted

year, Shifting of compensation. million of SBC million Afterpay of to related second the the $XX when expenses quarter-over-quarter the in increased compensation a acquisition quarter, based quarter by $XX based expense XXXX. one-time share Last in first Our excluding recognized share to

and an quarter-over-quarter increase of time. expect focused which quarter a the This area year. similar to expect greater we are over leverage We in second remains this drive on

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

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

go sir. ahead. open, Please is line Your

term, me term I hear Hi, opening your constant comments, you your system. near we and report on fielded of lot banking of if you don't in because turmoil get the on the mind, a to Thanks. hope here. want But I thoughts okay. great. trends on about I the on ask questions now appreciate and crisis Jack share long lot a can questions earlier

near priorities in curious let's if I'm term change these, in call any challenges, them your strategy XXXX. way So or

and of from also how and compliance your want that and you about Thanks. a do peers? And investments nature risk management to ask standpoint, things think benchmarking versus just governance

Yep.

question. share take report. by our would I response of we I'll the this that say So to stand part first the

be our not prepositions. will strategy from distracted and our We from

in ahead happening as in financial really you there's focus pretty opening of happening one despite industry, the it's in on have road remarks, our possible my And in I mentioned, ecosystems. us finance compelling We and a larger. map lot macro and of as important in every much what's as as a said think that around obviously, to I

to And customers customer that thing our and most customers important to make appropriately growing sure a into want what in according what base we're able need account us, to building is them being acknowledge that take us. and our

given partners us, that not our and want partners customers well. how our make over continue trust a and dependability trust is that about to earned our before, us sure We're and to that reliability, I've trust. through that And ways, we many to how talked trust And time. as comes that We build be focused banking transparency, our of also including on it's something as is lot all in earn. we through ultimately regulators has

a significant our benchmarking It as over been. about space. has has and anything Amrita do and to So turn is mind of against investment. always us certainly more will our It's been broadly set this it financial always to I and you approach. the for part focus be peers in to talk

drive Yeah. the is to business responsible we management, is to economy processes, controls, intuitive ultimately maintain investment regulators that, a customers, through us order our highly access of with regulated, that Prioritizing with and develop and operates enables In compliance goal through Thanks compliance to that Block expand innovative and in and external risk must products. helps teams with question, deep products and including culture responsibly. for partners, to expertise. trust Tien-Tsin. a our then ultimately do us the programs, compliance financial

growth during approximately increase compliance period. level, same the which dollars approximately by expect investment We our company last than of times an we to XXXX, grown have compliance years. OpEx since more represents significantly five few that invest our in $XXX XXXX At in in investment over a in outpacing two times million

faster compliance been the pace App, on even that. growth investment has than Cash within Specifically of

may differently. investment that, compliance you how with regards companies You to other benchmark calculate might know,

be So provide to these business to our towards our support units in serve oversight it is well support go program. ultimately companies. software investments our and tooling ecosystem. and other amongst our personnel, figures include that compliance across across What can customers and hard areas that as resource dedicated we benchmark business as units the These

also too and we diverse ecosystem, diverse banking of just of with crisis benefit partner Maybe models. having you from in very Look, banking, about products business ecosystem asked services a quickly handle, our sort

XX streams up focused heard to you we a our Across revenue partners, potential wherever in gross we ago. always XX our now or with are a million in from risk. year on building redundancies As $XXX can more at products and future assessing profit addition

a have build we our So and always can where we partnership transparent as have. approach diverse of redundancies and we we set products to have we a

Perfect.

Our of from the comes next Tim proceed. question Suisse. Please Chiodo from line Credit

product the also how distribution, and the salespeople But you on you've behind will offerings. then around the Great. that's changed Thank could maybe could up to restaurants to the market. on They talk key the mentioned vertical offerings want And Investor about beauty. were letter maybe are on the bit talk touch on website at the They the I Day. specifically. more action little specifically those the for they're verticalized you, a if the in the street steps and But to call made and about I you you know that everyone. moving three, support investment the in retail, leads next for the focused sellers. it on earlier. and larger touched the also drove you

Yep. I'll start this up.

of works it's And our key not about vertical everything any ecosystem but differentiator our how just ultimately. mind is to tools. one together the particular So,

if a flexibility always we they can of developer specific developer including And have hire also their our XX in find of tools customers that upmarket or products, in the that, some own And which see build to because the same. because folks. we growth do over provide lot a see, vertical need our We platform, don't software. for platform we

to complex move terms and point platform with of us our be serve our key which stronger beauty needs, ecosystem. sellers and continues forward. to stronger vertical In of allows And again specific the verticals much solutions and flexibility very of software, our that to developer retail the back goes we more addressing strength as restaurants,

first our behind done can go inclusive really these terms the never bit. having to take marketing. In about out point. we something It's look a refinements Square, fresh iteration, direct and looking and of terms of for sales, for always that website I And including actually, the how this just better. products this that a about, of we're think and is little like, a see we're improve rolling market, that this is is time how inclusive just the investment talk We in someone is this final constant constantly it at make to a to of excited tools

just points Tim a add the response. up help to I'll data frame couple of And

can quarter, and in first of that mid-market at of solutions. the around growth in specific and areas see points outsized solutions, broad So as this those serve look we vertical we sale the set we sellers developer

XX% strong overall mid-market of The our outpacing our our growth year-over-year, the year-over-year tools sellers And growing growth. in with also blended profit Square outpacing XX% up sale at gross Square profit points XX%. from our rate growth of profit gross vertical overall growth gross first developer quarter in

opportunity our than is verticalizing is the a based with which we're to doing TAM on an points a We This in hard upmarket our efforts. on we're work with gross penetrated just U.S. addressing less why larger and seller X% in making market vertical that the investments Salesforce we're believe and go the our alone, that sale. receipts of here large and

we've refine Square optimize in meaningfully back seeing marketing channel bit, first our positive as acquisition pulled growth as little we the a that on operations we've in and contextualize to investments even pulled and we're So spend. and sales year-over-year, quarter, back on mix

verticalized in It's reps. going with U.S. the our sales next that the is seeing of doing efficiency which outbound team, now over and but inbound led is with here, U.S. and doing team. encouraging be productivity our shift improvements continuing team. We've this sales Within sales, to a implemented that software quarters, sales to we're verticalized work been the we've to two sales our early we're

experiences, redesigned direct easier to this website, existing perspective, And sellers to vertical sellers our cater contact it businesses. making needed both to website run a specific allowing select to team, to products sales we for and to sellers their the prospective recently From support. our

early, acquisition that as homepage. These generation again, overall we it's for introducing to in expect since that new long results as continuing are seen continue over but And initiatives to we're work coming lead we term new on, strength well sales years the we've drive our and as work. them

Amrita. Jack you, Thank and

in question We to have Chapman] (ph) from [Dan Chapman] comes ask your dialling Please (ph). next the line of proceed. [Dan

pivot Thank XXX a Jack. couple and and to run two pizza been Hi, Square within of others. set call for name a were of about my years and up And My question. in quickly I When theatre Square us forced Cinema] a aligned, Dan, flexible Wander we Square model use Square for and store craft is Square sale, restaurant, I've you businesses, now, needed days. I currently seller business [Mally for an AW for use movie the pandemic called taking course. the giving I point tools six we (ph). struck, a and operations And to be gift year we our beer the credit to old of moment. a cards, online loyalty, few the always

uncertainty. economic again as myself Now must we adapt like business face owners

My resilience question is this for ourselves build business and can up current really set success how small climate? in

your I importance biggest making just in create say thank again, like within and question way own learned elsewhere. inform more the order that, your the really really data community, other that's about of times, to sure some looking to spent for are to the to and me, especially against resilience decisions compare Square, the keep look city, you, for for you doing business how constantly lesson now. I've be having patterns continues town, good us. challenging Whether your To is making clear right opportunities in to get them you that that our those to in that and convert of competitors. with sponsor and building your Thank back seem and business sure coming to you. for patterns only would more is and which, get you Thank ways And time to recurring. you kind customers using harder

new trend. that right like are general I button work more businesses trend about global you well answers. trend, that less done. an or, set up we're support in the local I and less But doing and will we think happy think there's for continue I think way and And that, or a by more online and and really really And work adding think hopefully, to extremely don't to to and that just tools have business, can, that relationship much about we're moving every sure our effort, you to and press And together. the making system it's customer entirely management just subscriptions the small

on by it. data fundamentals business focus making of looking really at you core the around so And and your the that judgments can

improve more that of data. insight dashboard information seeing that and continue based more and a So, lot can activities make we'll on to our enable and metrics those hopefully and and you're where, actions you

appreciate Really it. advice. great you. Thank That's

you. Thank

question next MoffettNathanson. from line Our of Lisa Please from the proceed. Ellis comes

on question. Thanks for App, to Hi, taking good growth Cash afternoon. my focus there. I gross profit wanted in

combined basis, You said XX%, from on a company XQ. XX% up up again, in

etcetera. seeing thinking acceleration, App's about really forward? little streams, example, extraordinary really you. Cash to So help acceleration quarter you're the how For you a diversify growth of bit and revenue growth. going Can it continuing where in disaggregate you're just sustainability Thank that and another of

the framework, question, gross our ultimately we Thanks each in ladder inflows for much I where the per it's inflows have would Cash off three start I performance seen profit, rate. of monetization so according here. can us Lisa. to look active, active, App's or variables to growth that strong at whether up unpacking

overtime. in is and This leveraging $XX to look driven well really were monthly new as tools marketing acquisition the of adoption virality So, both and drive network if by year-over-year. peer-to-peer focus XX% million at active qualified higher as on we March, transacting increasing customers QX product up growth, our effects,

targeting, perspective, X% healthy an marketing, also to how see an in new using first on increase where been trends those here. by inflows remaining higher the both quarter-over-quarter a the audiences, returns, disciplined we is been per see funds active of We've we've we deploy This while and quarter. ultimately $X,XXX value from and basis, year-over-year encouraged and at

of And of well, with XX% continue active are transacting where customers in per strong in active that at App those now Card Card App to drivers underpinning around growing adoption Card Cash of we as million monthly inflows March the key like the timeframe. see App ecosystem. actives adoption, reaching overall see App in $XX our The product we Cash really active Cash strong overall Cash per inflows growth spend products

product's greater this adoption on per to Cash App inflows active. leads So like our platform, ultimately on Cards stronger activity and products engagement critical

Another the their key App channel. is the volumes overtime, things increasing which for to in into inflow which inflow our can can past driving lead of as incremental in that customers we've with money paper ways piece funds seen Cash like example,

as per that mindful shift customer of forward we of our is that be active, we'll on Finally, is move key mix inflows driver the a base.

on family's our be and with inflows younger with As there product, per audience Gen overtime. we some Z success target see active or could pressure actually a

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or April App. still XX% This growth to expect April that What rate. now the last year-over-year in in about some first given key monetization And Cash quarter, for the of also as as that grew pricing shared on year-over-year then moderately on the driver, as we growth Ultimately, quarter our earnings Cash App which pricing look benefits. rate, noted we and strong saw as we you a call, of we're course, of but expected, is for rate in April. first more third changes we've in instituted XX% interest in quarter-over-quarter and combined see XX% growth changes the company income of lapping about forward, back was strongly year-over-year we is, the XXXX,

to noted to continue Cash margin note see here is, in expect this the business. but App last to quarter, to of Cash thing as grow for expansion Cash leverage only Final see App Again, App we not operating we year course, margin. strongly the

we've and discipline the continue business few continue path years now and for we to operate that with Cash on margins. App been our a As on our with growing

you. Thank

Please next Our question Peller Wolfe from Darrin comes proceed. Research. line the of from

Look, good hold versus guys. strong the spread Thanks, quarter. the obviously well. the TTP to industry Hey. was It growth up see in was

you you on us can that'd XX% for If XX%, into or close growth gross comment really I think about volume into profit give be May, any Square. there’s talked growth April April helpful. to

XX%. or more was Square then think over up obviously drivers I And overall, importantly, business GPV International differentiation, revisiting key the seller of the the the and the just and sustainability.

So view can with on again, of ecomm maybe together Thanks your and sustainability. that you comment drivers that seeing and the of we've other some been guys.

off. for the start I'll Thanks question, Darrin. us

I'd profit ecosystem, the the than think as about So, you of GPV we look, overall, our we health gross more at orient to performance. you look know, as

an purposes. in is comparison Let comp April basis XX% me to had XX% Omicron year. for related comparable start more at we This The where in favourable gross in ex-TTP on with the figure year-over-year. prior there QX profit was obviously,

into then on combined QX a was XX% comparable And company ex-TTP basis.

in points of in trends on gross you QX, are strategically growth. us. the unpacking where key very company broadly ecosystem we profit We've a ex-TTP, trend square seen QX focus oriented, also we our that from some what saw instant with channels, and in we really outpacing perspective more areas saw see looks And sidecar, versus with payments, is growth vertical even and So and integrated the a loans And ex-TTP. consistent banking albeit outsized strength the growth that know, basis gross online combined of April the in software from versus sale. for we person Square profit omni-channel in overall card our deposit trend

ecosystem, key a certain of have and beverage retail, Since been verticals, sort as moderation frame, we've Now seen discretionary some growth in we overall that at the when food we stable bit QX where sellers upmarket Square seen look of relatively customers mid-November multiple of noted verticals, time mid products. noted. in at across we churn terms pressure and February. has rates similar that of processing increasingly we we of existing to trends the is revenue the resilience back the on because overall multiple and the of obviously breadth multiple streams Because types serve verticals, volumes multiple across have we

And then maybe to address your international question.

the have of year-over-year of the We approach mix Square XX% where, gross overall product global outpacing our growth gross sort again, strong XX% breadth taking really differentiator centric grew international. seen in it -- expansion, was ecosystem. ex-BNPL also some Ex-BNPL, and led product Square's grew We're profit and of we a profit, -- XX% and integration confusion to our the is key growth. about

driving new bring markets. markets our of global parity products those so. so to look we increasingly In products launches And these to product priority be to the for new continues and bear Pay first in And in the of the U.S. launches in quarter, Tap couple we've had we iPhone across Japan. also square and over had past restaurants to Android And Square loyalty months as

on to our Square come key more top forward. the strategic these and priorities again, is So three focus driving in business here

Understood. Thanks, Amrita.

comes next from proceed. Rawat of Bernstein. from line question Harshita Our Please the

afternoon. and formation, Good discretionary exposure businesses? Thank credit unemployment the And also just businesses exposed to follow-up, should you talk a So your across credit sensitivity more to to side, recession we consumer there a about the you Cash Hi. on about how consumer on cycle? spend? side, sensitivity different as trends business the The then spending think you. upon Can App the touch are given trends? And SKU. then you demographics can Square the

the for Harshita. Thanks question, Sure.

broaden BNPL first now. ecosystem with and App that the with fruit revenue with along streams in and first, revenue annualized saying do works the seven more as six with App a well. we Cash across our streams million to diversity $XXX Square In is and start in the XX Cash Square, quarter, at our Let of me profit, bearing gross

And in streams serve customers can product it our the our set that work so XX was year scale, ago. revenue at at that were we -- is to increasingly a our broaden ecosystems each doing of uncertain times, doing and

streams. three revenue grow ones, So, continuing our scale we've while currently at grown to new

grow with this App, in about Card on both utilities, our was particular resiliency we per Cash average gas, when look both And spend Cash as auto, through App for to growing per as year-over-year through we times. important spend uncertain spend components our active, earlier, with inflows, and that Card, think of we're the driving think discretionary times. spend I engagement And each third these etcetera. and a Cash noted Cash at nearly across I we growth uncertain nondiscretionary platforms, XXXX, is App grocery, see Card in of And really of spend on for active also ecosystems get quarter-over-quarter. App seeing various the

that plus retention we signals and XX on meaningful products discretionary ecosystem those on -- see around relationships. and Square strong And customers clearly, engagement over that along more our have From as we our we that platform. perspective, So nondiscretionary around see shared see to retentive products spend and a helps the take more last we of income drive with quarter a consumer now through an signals improvement as time. we've and of

there’s the which our us. product being for to continuing drives of focus and in So, drive breadth adoption on retention ecosystem growth overall our

signals and environment and agile addressing react. able key to able across that to both needs our indicators, and our how well consumer is own our we're we to ecosystem our our business us read be as seller the customer can across real to the Ultimately, be as in ecosystem time quickly move what enabled

an lending environment. I them a product our that macro perspective, core think attributes make From products some look, fairly unique in uncertain share

data take driven approach. we very First, a

that fact, time, lending like of individual, broad products as customer well individual as customer and in criteria. data, some offered risk to of millions of core other set eligibility updated are our like in eligibility are underwriting we a Our that based models customers App criteria customers in Square on real specific Borrow And where on based both Cash Loans those them. determine of

of There's also we behavior repayment across processes part where products the reason They're each unique these that's these have often really types. access lending design structures short our repayment to we've to different capital. simplified duration in simplify that healthy and seen products of

loss we noted QX, improvement and in as a strong Afterpay, of usage. finally, repeat quarter-over-quarter As actually year-over-year. And with we percent see receivables in saw an gross both

know have from customers Historically, frequency. well we've have seen strong we therefore to underwrite. customers repayment These these a better and ability are and of increasing with adoption history

as really like times that during to uncertain those capital note So to unique customers, serve our are we think working attributes these of products important this.

you. Thank

Please question El next the Our from of Barclays. line Assal from comes Ramsey proceed.

thoughts of about question. on attractive you the adjacent And the comment road adding for into also ask here? Hi. and terms services that us Cash I most contemplate looks product Thank wondering financial of fits And on proposition. value savings types Cash give latest map if the from App product App taking how just the product. your Cash you to could what wanted overall other App, in my just just or what might you

Yeah.

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to and easily card goals, Cash link, it set financial on debit where is through track came this can customers Cash savings their to money account easily card. that our a add from. So purchases the the towards using App allows or roundups And App with and they balance,

more savings and account. on fastest actives it's million we X time. our a far, growing have So more can that that balance of saving than added drive that are see our enclosed App to over a Cash April, ecosystem than early feature we into roundups in one And had card. products funds through lot what it's half their But more

and is this another our of another. one another reinforce our one build strong So across example actually can ecosystems products

Cash roadmap for particular, Are within you savings App are the product you or question. asking your general in more about clarify just

any financial roadmap general, that the than services attractive other so Yeah. look adjacent general more or product color just within in Thanks. of in might kind just specifically savings. of terms More

Yeah.

that to peer-to-peer. utility these what All approach to effect and ideas is with doing App of something And the we with and easiest of customers instance. that's adopting complex new as where app is very know, simplifying I fairly lot are come. that's adjacent, take of has looking Cash the our level into taxes, And, greatest something to you get really a ecosystem. the people, started that which base they're more into what at easy our value our product a they're network products our our that within strength and tons products way look our But, are is for importantly to most we from viral traditionally think trying for was what do, at

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there something lot more can make we're sure to we do new robust that's strengthen that features. products and just to continue there's connections a more building to new and of and So work those at

you. Thank

Thank you.

of next line question Our Goldman from Sachs. the proceed. comes Ng Please from Michael

afternoon. Thank very the question. good for Hey, you much

about Just OpEx.

might a that little efficiencies in the you was that or may if benefited throughout than I quarter talk how guidance OpEx just the wondering the quarter. recognized from have areas about of elements timing year? came is OpEx in better First, impact could any you in bit

of in OpEx for making you're any last second, talk how growth, quarter. areas could whether then just investing notable And are plans year you. you there and viewing changes OpEx full-year the to any Thank you're relative about

for question. Mike. the Thanks Hey,

OpEx and kind from about for view we QX. on And with our can me talking full-year actually year. and start dice of the Let then slice profitability the

adjusted profit to look, responsibly billion to and million And course, growth. we're growth adjusted OI this So year-over-year -- the This profitable quarter. for of deliver more primarily primarily first our both. goal outlook raising always a our the reflects during with profit EBITDA, $XXX strong targets growth $X.XX margins on XX% than investing is our as on improving gross full-year,

the QX had On some investments that intended for the expense we to later the of in side, we're deferring year.

on the Longer an path on returns the to we term, adjusted making XX deliver term should a follow see. investments that basis rule we're of our OI given that longer

expect that few Square the profitability while that are about we've which the I more is to last This consistent what expect to we're think doing, already work of improving year-over-year. the underpins be seen continuation healthy noted expand. investments Cash earlier, over continue we we're margins we we As App that margins, making, years, a this and trend to as quarter a

hiring. we And key is we'll are if we leverage noted of expenses. see slow, of our think pull hold what about year quarter, on across areas planned targets macro these in that last midst The the growth similar intend we uncertainty to the back of which to we

much slower we'll strength year-over-year the slowing to the XX% quarter, saw we sales but pace in the a the of range. we marketing growth And than XXXX. accordingly, see as increase are react As in last we approximately increase we business, XX% deliberately to in headcount hiring expect shared and at rate

was operating growth about first our me implied we EBITDA quarter in expenses areas guidance. key timing that in came the brings what you our that based really the our had to change the in to And during QX included guidance of of we quarter, the variations then sort which to in the $XX And saw as we the the expect expense lower that across unpack given of of it in than investment. for saw lower million broad year. Now be some second normalized in than quarterly rates

and was expenses relatively up down costs, processing driven transaction peer-to-peer Peer-to-peer was App marketing by in marketing of year-over-year, sales card but costs. an marketing Cash were rest sales and and X% sales increase issuance So the flat year-over-year. losses and

driver excluding our our with then one-time Afterpay And customer and to Product compliance, year-over-year cost grew related here year-over-year, human personnel. grew and design. certain data to engineering, and G&A, slightly also teams down the support primary resources, personnel acquisition investment but related science, development is expenses

grew also versus have now full but this Afterpay Risk quarter we of year-over-year, last a books also our year year. in

we'll business. discipline these key are the And focused continue we're elements operating do across that with through to the that So kind year. on of our

That's clear. Thank very you. Thanks, Amrita.

take now We'll Alright. question. last our

from comes the Our of line Williams proceed. Trevor Jefferies. from final Please question

monetization pulled over profit gave with you backing Cash the the NPL it gross were We of Amrita for into first Difficulty] for [Technical in. just $XXX rate quarter. App. ex-BNPL million BNPL

profit comment growth just April number. on combined can And be company the great. growth within anything on could gross that you would BNPL you If XX% Thanks. then share for

Hey, part be the of Trevor, to first I a out BNPL your sizing the primarily in question. cut the question your Do around take performance for for quarter?

QX. if growth And for then the you out within Yeah, BNPL BNPL parse in the XX% April. could

Sure.

GMV enterprise sellers I shifts that here to is quarter. In and metrics growth grow the the markets. to based in mixed GMV newer we'll profit. gives volume You faster to gross know, XX% orient think continue we earlier, which first in quarter first the the look, provided

XX% April, April up the quarter, growth versus of the the saw quarter. first So we profit be first gross to the from this. But in what was in the growth GMV below we in in month XX% expect

online, customer we've course, App paid past. ecosystems, of Afterpay a XX% this and by And of Square our repeat and late using engagement adoption. incurring of new consumers customers, of we increased We're here new with early base time Square our to Cash instalments and within on engagement across to consistent what work which encouraged a the purchases growth unlocking We're the our integrating ecosystems we've quality fees within launching of on see tab in we strong to and true BNPL BNPL pipeline shared build here rates. be attracting person continue commerce what acquisition drive us our platform. not of believe with and new We focused for continued and that continue with where repayment merchants differentiator will seen combined and Cash Discover App XX% which see scale healthy is to with in high encouraging combined we

Okay. Thanks.

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

disconnect. Thanks. You may all