Block (SQ) 22 Feb 242023 Q4 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Block Fourth 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 fourth quarter 2023 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

targets well would and and of priorities may forward-looking These discussions statements goals considered our During future be conference this be call. as to or Reported everyone from statements and decide move time. take forward-looking. will indication other on materially an guidance performance. contemplated and could as we also than of differ be risks are statements participants. We to statements those any that statements. making Q&A, and include remind results targets fact uncertainties. like by we our should goals, could forward-looking forward-looking of shift Actual be questions will subject to not as away statements All outlook our to historical we long-term from at results call from deemed These these our

update Please the factors our take based available of us during our law. differ. bank cause We any as to call results any through offered Cash our refer forward-looking required those call disclaim on a could Also this of to filings SEC to App's as for information statements a are with that partners. that discussion forward-looking of the Further, the obligation today's except this on look to note statements, discussion date. by a banking at services

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

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

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

us. you our I all we're Thank for priorities. how Square quarter, letter to on through focused joining grow Last shareholder going X

Cash This households App's to the goal about strategy become our U.S. quarter, in to letter our one providers and is of banking the top of services

yet, letter details. please you If that for read haven't

opening on we're providing last As focus we our questions, on time to your did remarks more Amrita quarter, for going to details maximize the financials.

Amrita. to Over

Thanks, Jack. are There like I'd X topics cover. to broad

framework. we've investment our the where been, in our fourth where profitability, full quarter saw driving strong in year progress of for against growth performance and First, XXXX improvements meaningful particular, and we

guidance the Second, look where improvements we're we'll of XXXX, for headed, our on quarter, first our drive to recent seen for XX. trends we've expectations ways Rule and

we Let's XX start Rule strong our XXXX efficiency drive toward in XXXX. and with continue as of target growth to in our

XX% or profit with in up year-over-year company the $X.X We ended gross a on year, XXXX XX% billion combined for basis.

during us focus heightened the improve on efficiency profitability helped Our year.

quarter. basis, margin to highest Adjusted yet, a billion, income, of to and a was than guidance XX% reminder up a was in improved XXXX, $XXX $XXX year which million, of ago. the our compared higher operating which Rule on gross adjusted third from $XXX flow as year a few $X.XX Adjusted year-over-year, Cash depreciation, on components was profit profit, year the expenses as XX highest includes we our our cash million, flow XX% EBITDA loss gross company $XXX for and was combined generation a achieved margin ever. also ago. Taking million related XXXX as a a on this compensation million negative up together, representing free stock-based points X% of and

retention, of ability are gross by component pricing is investment our which shows framework and is our an indication whether The customers. to valued our over products, our retain of support other profit time a and customer

up and Cash App achieved Square per guidance, retention from EBITDA and operating on income aggregate Cash products strength profit driven in saw $XXX Adjusted pricing million quarter, was Square and annual spend. and gross in $XXX cohorts. was benefited in our profit XXXX, changes. In inflows discipline during continued billion, in the During monetization each by year. driven was active, by million, higher the discretionary than services financial positive App software fourth offset our XX% softness banking, gross cohorts $X.XX adjusted from year-over-year. both volumes across processing

fourth of operating of efforts a by GAAP our quarter, restructuring platform loss our a $XX in expenses moving basis, App. of goodwill million primarily $XXX by starting into the related restructuring, was million, commerce expenses $XXX restructured as a to organizational fully $XX impacted Cash million, reminder, Also On we our of severance and impairment BNPL recent lease million. impairment

are We prior as fourth and periods. reflecting as profit XXXX results gross our change this quarter well in

and Let's fourth the the quarter. App for get drivers into each Cash of Square in

$XXX profit, in year-over-year gross was million XX% up generated in the quarter. XX% GPV fourth Square Square year-over-year. up

seller MKE volumes, device manual-keyed GPV or over periods, from and churn the continued into in a growth saw stable online person XX% of slower we X compared more year-over-year. prior. volume discretionary shared sellers U.S., what an ongoing While of entry, than last payment trend, our with in was MKE, where gross a a we've XX% has seller the existing card-not-present be consistent positive of ramping compared we by quarter contribution per cohorts to volumes, information prior profit solid up quarter, in been years phone. to also of sellers. Within lower This we decline volumes, This with GPV just fourth either representing partially experienced acquisition affected offset seen card in spend and XX% in a the XXXX to manually enters now by Square or

transactions of impact for although payments expect remain time, its software-enabled MKE some headwind moderate business. to an We should we our as from increasing expect become to the driver

seller has delivered by driven products year-over-year, $X.XX and declines, growth, growth and per gross XX% generated and banking GPV products moderated, increase an point-of-sale fourth GPV respectively. Cash up our these App from strong XX% in billion Square While profit profit of with XX% solutions quarter, gross vertical the MKE in year-over-year.

framework, Looking the inflows platform. of at the our components BNPL does not reminder, as include which a

and X basis driven actives. Monetization XX% increase as X% active App during gross Cash twice of points our adoption services quarter, total third year-over-year. quarter-over-quarter. within transacting financial transacting overall than Cash the million introduced December, monthly December up Cash of actives, profit in customers up averaged per X% by financial year. as its million a services including App products App the points more was of of As base quarter. X in was and in growing Cash the our to from and past Inflows representing continued the increasing over year, basis up year-over-year $X,XXX XX fast scale increase active Improvement an compared Bitcoin reached transacting quarter actives, X.XX%, XX by year-over-year, App. factors, driven had than Card monthly prior more pricing from Card XX% number to the monthly rate to changes fourth implemented

in gross to year-over-year, our from to fourth fourth billion the profit Cash quarter. BNPL App Turning GMV was in BNPL quarter, by our million $XXX $X.X up platform, platform have allows driven of strength the direct merchants via BNPL. well relationship Afterpay single-use which contributed our the and which the as Australia a as across shop U.S., don't we offering Pay-in-Four payments, and customers U.K. using with pay in to XX%

receivables consumer were consistent with ranges. historical on of Losses GMV, X%

his Jack Card BNPL focus a through As year, Cash App for payments as significant integrating included we next see and key letter, commerce tools opportunity. a in is powering us

guidance. our to Turning

We achieving our committed have XX XXXX. Rule of target to in

we improvement Our primary is combined deliver achieved basis. an to Rule objective the in on company XXXX from a XX XXXX, in of

this, adjusted we gross achieve to have year, on forward outperformance we during intend an or To or exceed the least point growth either initial profit both. guidance at margin that income of operating X by put

working are growth and did XX. identify to us of additional opportunities Rule year, efficiencies we towards further that As last progress we

For By moderate XX% that profit at least grow and for the Cash other to but App are XXXX, cost or $X.XX billion pricing as we full initiatives year-over-year. Square, improved from expect least at XXXX to structure. growth we we expecting than year growth changes ecosystem, faster our in gross lap

look we velocity. XXXX to are driving our and adoption efforts on As and focusing product beyond, engagement we product through

of continued Within and year-over-year expansion few and $X.X the are adjusted to drivers of at least and integrated banking our towards of of expect and billion work years. On to several least believe points at adjusted preliminary versus be growth. improve adjusted year priorities $X.XX the X million raising and and seller we our new margin acquisition We we expect approximately full billion can guidance go-to-market initiatives EBITDA. over strategic income on EBITDA investment put the guide represents This Square, $XXX on our behind we operating next points operating now income profitability, $X.XX X software compared payments adjusted of billion.

As to costs, to percentage have profit expenses leverage as based the environment. our profitability and compensation changes gross we guidance into on on of no focus expect a today share-based we managing macro business is XXXX. compared continue to significant This with on we growth on achieve visibility to the

the quarter XXXX. first for Lastly, our of guidance

$X.XX billion midpoint. profit to in expect the between at We to or gross $X billion growth deliver XX%

For quarter's Square, XX%, to expect we to slightly respectively. the compared gross XX% fourth GPV and and moderate profit

January, X-point weather as particularly moderation So in periodically experienced impacts and GPV in regions X- drink saw particularly and in we far food a this volumes, year, in-person drive to the it impacted growth, retail. to and within Square has certain U.S., where

and in to be active inflows quarter. by App, For driven expect we Cash actives per the first growth

gross the growth XX% lapping be to moderate expect comparisons. fourth profit as the tougher quarter's rate compared to we'll We

$XXX XX% margins year-over-year quarter-over-quarter we growth The demonstrating growth. both income profitability, continued to plan to million million at deliver and million and XX%, $XXX with adjusted XX% driving and of on of of represent growth operating $XXX million. Looking profitable adjusted focus respective $XXX year-over-year of XXX% our EBITDA midpoints to and and

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

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

letter, growth is on in and you And get Cash in Jack, about your quickly So to closing measurable attack benefits really when 'XX. to question gaps want acted see ask you here. engineering can I how quickly App here we design costs. can some reclaiming might leadership How talk and velocity of quickly product Square. you 'XX? you In in Really, there? product the in growth

and through TBD. in can we so TIDAL Square order inclusive move every Yes. much Across going the an one And board units, we of to business of work Cash we've faster. how our that's in exercise App been and simplify and

expect So much should across board. product velocity you a higher the

With us future some #X we that particular, of with been platform work. faster we've doing bev. is features Square, This can a back gaps ensure and have move and held that lot in to with our certain food from customers, namely priority much

year. kind good of just We retail, have, I for platform elements unlock a across push And of pre-auth hard example, those be speed really services. it's to this restaurants, And able see coming believe outcomes. bunch unlock, we'll really when and whole

focused On App -- I we're the the have relationships of in banking we've to, in I a And on to Card. Cash from thread, model we base. is our going letter, on lot time. said this, proven the of App, a with out the relationships. our the a some really efforts We've benefit bank say, banking our pulling for been the order where lot focused the success focus the And as shareholder it's quite been of should Cash lot

sure strategy the Cash has do best -- we So see App that one the make their looking bank. under is signals is going majority the primary and of who's direct for to that that choice their are App. biggest our first deposit to making is of Cash choice $XXX,XXX as And anyone to the into

very families to focus, said parts we in X focused and and outcomes very we'll a is map we're more road in also I and the App a And positive a to see banking on we from it becoming fast inherently have allows social social. to X because a much that think bank. of us So move road in particular. map that and detail, go against lot of letter which as is Cash strategy, going

the Cash of ecosystems our putting comes to first our opportunity incredible a more have with intersection network. foremost and start particular. commerce, effect where this combined to We you make this and at power And look starting into really We're through the payments peer-to-peer. see App, the network going with local the deeply Square Square have and play. and social even it local And combined in we and that's customers in really

And this tie I'd outlook. just to XXXX add, Tien-Tsin, with together just our

is and growth incorporated our on business, into seeing the philosophy guidance our trends business guide entering earnings and rate in to of we're known expense as what Our year. quarter-to-date based levers current plan the run our that we've the in

and we're initiatives into within we XXXX we're a into our expectations, So each recent work product the hard And expect a but at strategy, lot initial or strategy those in this us XXXX refocused early and we relative year to discussing the are. to for of that included get not or experimentation the go-to-market given the base opportunities business Cash with platform outperform those deliver beyond in the it's guidance. Whether key days. Square us bank and the they elements, still provide they App's growth later are how to at of as

comes question from the line Timothy of next UBS. from Chiodo Your

to little want to the Square a I approach. in bit dig distribution

the potential partners view the that adding distribution, get adding across broader for nation to coverage also You've banks in out talked of how But future. referral about mentioned upon the experimenting maybe you and the various shareholder you could vertical potential ISOs, teams, the in-market views Square the and to and with saw expand and so program. sort also you and the considerations ISOs sales with revamped potentially how teams partner outbound for in the bank local sales letter, building

definitely on as this. past We years first We're tried in this few a company. in the Yes. open our

As in every the you our in wasn't of we investors, was States. Chase And that Square single many United one JPMorgan of know, B. our effective. earliest readers It Series branch had

was strategy coming banking, of not it And that that not to the few to just for and off. That's think them. does business open because for customer work open work. to did Obviously, reason, work competitors. all these our of especially the I for particular in, don't say a expectation certainly whatever we're exploring channels them

I think but go-to-market lot -- our want to a is our important where our really product itself the certainly I biggest thing is approach, Square is for put the that of focus.

It's people things that Store. we soon confusing pretty X the the it's to or restaurant a not, App to doing search is App really, now, of -- as One we're us whether services apps or about they organization. there we're direct have app X right they in to the a get Apple's And they especially find when function they're need, the of results Store. if or a or retail

we So what easily that anyone be one to to Square. go we're Square. It's app. And Square you we're to or going going having to download to can back do going can to you called just can go say is

we But have a merchant get interface more And You dynamically software. it also The generally, sales of and with you shift navigation the our will them guide over everything need. with I time type can you the features based you be and folks would think simpler. you are team and to through. whole on say as sophisticated lot more and obviously help shift

just up massive success and multi-location, to way as the with more We and self-serve. use referral do proprietorship, have multi-country. targeted you're and app, the and add much up merchant, them, restaurants, beverage get a specifically get one to or simpler micro And sole it, engines within whether having we to food a to way all with and be started, person,

this all year. So that's goal, and the that we'll realize

important, what whether of I distribution we going partnerships, that think and targeted more really make it ton and through a channels unlock standpoint, or retail, and which I going is through to restaurants bank most for it much be that it's better. services And aspect. And from do make or ISOs retaining, growth is on importantly, think to that's focus our big we'll a a anything

our a part core The I think which strategy is that banking. other is help us #X of retain, thing will

ecosystem We our not our entire serves stronger. business but the a that truly thing have we to have account. They're the differentiates get banking going peers. from have we It's equivalent X of that the only And within only an business, products us market.

as that for to we've it's the a past, doing our hugely they a been hugely stack app loan get and there's card, can Just branches get download And like some quite a they're also can can line one that a credit card, time. they Chase JPMorgan get all to they important they in can of going into sellers. get with integrated one is unique credit,

be think I amazing. So going to it's

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

Deposit. million of users little in million now, for your obviously bit X terms front the on to Direct this package strategy to what But Jack, look, App obviously see notable time just getting to, an App million a say, could then, And Cash you've know what It MAUs. accelerated adoption taking hone maybe you on to we And your on a Deposit? or able expand around on you been or prior consider success I X% Direct users moving happen. banking XX on actually I it. set assets of or some that Direct of that driving more forefront Cash XX% see Just make X a of is to been maybe for in mean, if would there's frame attempts versus, incremental adoption you Deposit just

of one input, reliable, trust they deposit direct output. but We as sure and as with. easy, see people features on full a And biggest as is work the to App that can the trust people their think the that of banking Cash something I be trust. factor make want connected that driver big is their that just that is dependable, going to paycheck

with a been most it Cash has I extremely to it? give change Card it, use to of to And can App to It's get one within it, personalize to Cash what actually card. extremely App. It's easy do successful products family the So members. easy to it, our

they and So way gaps we offer that There gaps from fresh an filling to the and Deposit are their growth. those use their again, and Cash grows. And intuitive, also feels as us Direct the missing people well-designed in that that doing but reliable do perfectly of App as it that in so is to know it, traditional then that's very map technology fits back family the how there's put and friends their together and banks people, some to all more talk trust entirely they lot it with people about the benefits are seamlessly. That's that's attractive But and we're there. traditional more that and paycheck more time And a ways, because see really, ways they use give not. can new that it in customer. road and

want focusing much focusing fact have us we seen really to signs but globally priorities, we possible. this longer expanding and with base peer-to-peer, United and expectations, getting in which upmarket allow banking faster. -- on is going our it's for communities The moving no base And bank than starting and the we're from, with that focusing lot a more the is as So outcomes positive for to think beyond our other that commerce. after as to neighborhoods see we're on we've being and foundation more local going faster really which now, expanding X move right in then some that social we'll move a early States, fast much the on I traditionally. And families,

a more believe, add it all and XXX%. hopefully, App more becomes up Cash more desire, use more put money tools and there, with and these we So to and to

features to a just a experience got of of actual be an the deeper Darrin, little market for customers bit features. features customers, today. compelling beyond the that to give more We're on will out And what's go we available think some we've bunch rolling to

broader early Deposit Card spend App et Cash products or money think in new Direct minimums, or ecosystem So they our availability Cash Pay, on that the it, is deposit features drive Cash today, invest direct our focused benefit also being of and engagement. we the App no send, differentiated where with cetera. We're can offering and on fees App active the

example, So yield we for coverage distributions. amount. a certain and introduced to on for up free recently savings allowed automatic launched We overdraft balances paycheck

that this million expect Today, customers us money. So bringing as X paycheck we're December, from of more their will base in we're but broader as the it's they our prioritizing launching forward strategy. key the X% per be driving monthly along before our part about of inflows start products of bank deposit about actives one of of focused that active with on actives, KPIs

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

growth XX% what aggressively are able in think discuss that OpEx your deciding cost XXXX to implies backdrop more outlook the OpEx achieve in you And growth invest X%. your I this signals of gross of Would being at profit tight again? you about when to then management? confidence just against whether for least looking

and we're us most and and lead reflected non-GAAP is Obviously, expense I we last of around constraint, from excellence stronger the to quarter both expectations of that people, operate. which our maybe well leverage profitable prioritization us prioritization kind that perspective supporting ultimately further SBC can still us being, And which from those will constraints for for a opportunity for in amount our impact in from that again, XX,XXX-person tremendous growth. to one, for leads a the customers see what as continue operating start areas teams personnel. expense key under operational pursuing leverage with some to and clarifying in in key areas you unlocks and constraint heard are against. focus at But to reminder XXXX. And cap, the our we've the been believe how that perspective, that operating you expect operating of leverage which have of our currently and That actually categories the scoping time. a an as

opportunity are engineering corporate et refine new more overhead that we AI T&E, sales expenses, and to design. make to we're us already technologies estate, or sure whether it's cetera. of And food where like third-party only like vendors, is greatest of then, opportunity real be of deliver look in-house but efficiency constraint around course, renegotiations service across discipline, to we internally, structural our to costs, the partner can whether that operate customer fees, we continue continue which of have seen longer things term, some not operating then economic course, that our we've to The serving pursue data of in to or and other as product the efficient, are cloud already amount leveraging teams with of base area made it's an our fees, efficiency. And get spend there professional how we we last terms and key some focus for headway that customers terms unit on with we'll but improvement products. in year, we've

opportunity to and already So deep to to continue that that, digging grow areas overall into platforms grow there for support of we've continue and our are for gross our profit. us us a that different been do to actually number our

near well. market allows of allows really ago, our bringing to more all a us And add the that makes in we a efficiency, the us as as faster, more mode ship all clean -- were I possible. been for and impactful all and said our it's our of go. work bunch and doing AI emphasize the flowers the these much productive where it these even we think of between there's we're of faster And mean, is, calls that and us Sorry, We of going but at extremely created hearing as very in to our as inefficiencies Square all that us that done up you second AI. to to That thing the at be letting creativity years allows very just I and of in believe everything complex designers many lot about much a more really just would is we things we've think is look ecosystems. all and have these in correct bloom learn X what about and mistakes to of I Cash is constantly it's weren't X how Amrita engineers, faster. systems tools which be future, terms a building duplication It ahead it strength and together. And to to we're had taken and ton to all. of App, all between costs great I these tools we've much

faster dependence on believe can we a of I or things So those solving of have faster, tools all much actually the we don't use and shift such multitude move much thing the are X because different doing because effectively same this same that case. but

from question the Harshita Rawat Bernstein. comes of from next Your line

the composition these example, base. I us give some is on to had commerce. of Pay Cash to about want Can ask volumes, for merchants App some things very enable online? and interesting you in App Cash investments online. And from a talk small color Cash some also or to grow within partnerships Cash in App What compliance You've are Pay growing Square rapidly of App related you a as merchant-acquired Cash salient option penetration Cash e-comm? to recently also your can overall, of grow kind you payment Pay can App most do App just as we about banking? although the

about to more which last really commerce you here in App June. Growth December we actives customers This App way of a next to we've as than drive has key beyond ways how more Pay recent part million spend customers merchants. tools as and since spend, Cash through excited as for been more ended over to seamless on has billion and more tripled progress provides annualized using broadly X Stripe. with for the to that Card. I'll more expanded the growth off, We're Yes, the the been past start App several Cash is to integrate years. We Cash see driven We Pay. reported we our $X.X App such we've online a able quickly we've year GPV, especially over in and how Harshita, Cash seen Adyen, what partnerships and monthly DoorDash,

as a well to exploring have merchants pipeline of expand our We we're large reach. strong to continue

Afterpay's critical scale allowed here by their to Of and sales team the quality course, sales organization. us leveraging of has enterprise quickly relationships been and existing

your about App your the part can think was I the of you other or answer Cash repeat Harshita? -- question, did second we commerce, question

Yes.

broadly So App, focus Cash especially to compliance just more not related into just Pay, as within App the now more banking? just investment you Cash

broadly investment across company? the more Sorry, compliance

was suggesting into I probe just within reports App. regulatory Cash No, media Cash App. of some kind recent thinking about

Yes, absolutely.

without obviously, primary and Direct sound These to with do years. now can we of areas to make So that and speed. system trust paycheck We App's that We're our compliance, everything put goal big, it's continue they into people that the want sure emphasis they build all iterations. that on past, being we've want security put big their it, part any even learnings focus only perfect the fraud more going this that just they to on Cash we Well, to are in and it and restriction a big is areas the earn having quickly that are that a any utilize we future. a the can if us crack of XXX% case adversaries. And velocity that to works. for that's build risk. those of into And want trust. use we Deposit people. and do where of And bank had And been that constant steps is trust stay then this and we now right for them because right focus for XX we more ahead never banking

us, for a available makes significant is in and us entirely But to now better, our that can us and be more past. in ever work precise this we much have we'll we grow. investment new to exhaustive more continue the technologies and So than far even have we far approach more efficient,

comes Jefferies. Williams Your next of the question Trevor from from line

distribute this BNPL, much year outlook. mentioned that. which before, that's App, App on baking we dig haven't initiatives in could product you think full up of heard follow a Cash In new from the the from if Card something you're I these App within to especially least what and within around And way Cash you're to expecting want I newer layer the then how some for to expect products was as in commerce year. around at the into letter, you Cash commerce in you contribution that just guys pipeline

mean, acquired Afterpay. I first been a Yes. so we we've bunch work of since doing

within e-commerce first we discovery Cash in more such distribution. Card Square Afterpay that commerce, Square an and that, all be. because or you last know, should the split that's the more As of foremost, and going in it commerce Cash is was org in between incorrect, the App we realized put We be asset have year the And and benefit and of App. that we and local discovery incredible and we to have greatest commerce, global or Cash asset where incredible less Internet in whether that App that merchants. But Cash majority App had an that's, as

I want sort the card later created. financial pay So buy we're you now, see pretty today, has to as as now, get tools single cool on as app, door be pretty Cash things in the same buy offers pay And and excited the of itself. every and looking interchange the a Boost feeling and to about you merchant about you that the Cash time that on and for our opens it. and awesome just customers go these treat we're real on is And all which past for entity, for this them. the the within they Card later We all talked on turn and that in App within calls, right Afterpay can right card. imagine, can We'll tools, would

the tools So But lot a much continue Afterpay the of within with much app within and App. the to there's financial will be App opportunity Cash there and lot tools to a to more use this itself within the and And also of within itself. Australia, grow a visibility of have cases we year Cash integration much, tighter push. Afterpay

our as we're of later primarily newer that into next to outlook some earlier, year, think And this on in we'll they with is how the -- these our guide these I our typically, based as be year and improve we rate business products, and growth moving terms said in of quickly about products run respect and launching current And our ramp. levers. on we but take around known launch time typically, elements velocity, to trends to expenses product

services to expect I'd within So see we banking primarily commerce as heading products greater in benefit move these against and but the and year Cash App. later and into XXXX quickly financial beyond

of line Bryan question Your comes from Cowen. from Bergin next TD the

side? direct Do aspirations do efforts banking different the you with differently, the on you to banking on your go banks successful, partner can still or should licenses? banking broader anything need Or be leverage asked license your side you do to require

anything expanded necessarily have, Great doesn't the cases today us It around services, financial we can require do do our the and as for, very potential addition we're to excited are bank, that which loans. utilize to far We ones in about as differently. question. use

so bank provide make So itself speed, sure that much more doesn't tighter from partner it efficiency we experiences. And can like and limit using integration cohesive have the more to us want that banks. can us much we provide help

can easier a these more our of bank makes this can as with obviously, it rule all can to it in than portfolio. that things a much to we profitable banks, future, the lot more we own, various going online. and use multiple We product comes traditional flexibility what's including You that that have think the that experience can could. technology do And more new fully we is people. to And a offer do as and

how don't products build our any see is up. and coming in significant that we we changes focus So

Your next from Ken of the Research. question from comes Suchoski Autonomous line

cohorts quarterly and spend XXXX? about the are that comment to mentioned How letter that great. you payback in I if tracking X can the in period think period. a Square XXXX, And payback the how would be are for on thinking XXXX XXXX for you X year, marketing the thinking you're quarterly to Square you about guys

on Sure. off Square what we the And expect to over ROI to in returns ecosystem. kick to a orient Happy primarily we as we moving how we've We seen market across the see go recently X-year forward. what that period to what to go-to-market our invest of they're we're Square we're as platform, able bring customers, into value the these to grow attach into on lifetime our initiatives that customers able extends more ultimately able products the and customers to to and ecosystem.

for things of the and we've approach to orient team as So but where vertical. initiatives, spend bundling we're in essentials and Across we proven our marketing. a restaurant's a sales restaurant we're of of we've forward. across ways a on ROIs set ROI it to I local for us would efforts price customers with to continue one or pricing, can our that with to Xx from pace sales over trying whether experimentation where we'll the takes rapidly simple now ROIs to products of a on our we iterate referrals, create our sort differently focus more did a seen bundle across a and simple marketing years key new so contracts perspective in small channels, is where both number or moving more taking deployed in that's argue of X learn, focus the past, healthy going We're have in we'll at

things platform cohesion Square initiatives of ecosystem. of We can the app unlocks of earlier, onboard as initiatives different Jack think customers around drive customer are efficient a into strategy our to more onboarding for single And and we the some us number mentioned how broader into as doing about our ecosystem. and key product are a the

get Square is The together. a And I'd And execution. there's marketing make And aspirations closer doing our targeting we are and as the that -- functional when to website reason we're or add flow, be we when the number to that ramp the the letter, of gaps to there and they thing that very, that only product hurt the is started sign-up customer smooth that to that actual any had want and going the we're they more we the and bring experience in is organization. I in they and would -- come of a to -- is that a -- company. of sure one reorg targeted past come believe the the call bring folks. in with to how back said we why very sales we really marketing our they much, a This one out-of-home our recent do, much results from get is

whole much and will help we a lot think, faster. sure lot So the past, we had they together we're on issues of the move that better the really so illuminate focused making a can organizational I work structure, in

Your Bank. next line from of the comes question Deutsche from Bryan Keane

monetization about rate. App Cash ask to Wanted the

think I recall sequentially. it thought basis stable points I would it X If up be correctly, you I think was sequentially. more

think and then that's color of kind through rate how the on from called of so any what where on exactly side as guess and pricing, and I Bitcoin will go drove outperformance we I XXXX. coming monetization out So surprised trend the monetization rate? you the curious pricing just

Sure.

quarter which couple the are at To fourth basis. itself, specifically on quarter-over-quarter, quarter-over-quarter. sequential was as were points X a the within in your ones X saw we what the play there of So question different a Bitcoin and Bitcoin, And a appreciation primary improvement factors product the basis basis benefited the price as point around year-over-year of both but rate Bitcoin. pricing well it of was monetization on

As see XXXX we drivers active growth in actives as XXXX. for App forward, we primary the inflows around in per Cash look of opportunities and

look see of our opportunities go base. customer to services the these we rate products financial as deeper more longer we ecosystem around As term, and we we in monetization attach

saw grow be up But rate on monetization products these not more don't during at in we'll take and pricing XXXX. we themselves, as changes we coming the we opportunity meaningful expect of XXXX, customers a our rate. see monetization that in certainly and an lapping meaningful some more to change level As

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

or and on curious through curious, the could that that savings thesis you us And for the the the Amrita, product evolving. see how I'm walk users and App? mechanics relative you direct I'm deposit Cash unit guess, your on, economics I particular yield, product

they us, primary funds then make that we which with more customers services, partner, their save offer strategy overall The of more we of us more and of banking financial as can is them monetize. their some Yes.

being bring some thinking tax with us when We in and have use seen for at and X.X%, App. debit Cash of modest an for Card, we is launch products to X.X% the and into being our product, inflows see strong customers of customers incentive what a value some a the product App customers we're investing strong gross balances. inflows And profit into customers far, with days yield and our with free, provide, use deposit about you product, products Cash of Cash we're a of these about a correlation of offering more savings a the yield for engaged us, yield who who history like monetized. And deposit a direct where we driving providing ecosystem Cash customers App. What direct more App with for entirety set savings it's we've with card, peer-to-peer being had so our with terms more the who look, our products broader across early

of overall from funds. of fourth We million financial more the representing the end App looking X% Cash we've be of broader more inflows as ultimately, the yield, introduced customer suite as opportunities we'll to But with savings quarter, have attract to savings of and accounts services. recently engagement $XXX total and balances a

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

letter XX gross Page at looking mix. the the Cash just profit App of showing was I shareholder

at disclosure dependent services lot pie. shows least that a part financial instant of new less of some I much you bigger which a a think It is on we appreciate. deposit, becoming the become

XXXX. in I XX% think it was

say, that any services, any I'm there of comments Amrita, Cash XX gross real free bank come And is in the terms strategy, may just of cash XXXX execute as the Rule separately, on year? base So the pursue profit of you quick, in financial as flow from of App you target XXXX? mind percent just that by the wondering on for kind

for Sure. key one XXXX hearing in growth going you as note and it's is versus we're And obviously as percent shareholder you years letter. profit grow App, to a as in Look, prior our us the at XX% shareholder Jack's XX% within in you've been financial in we as today the X letter. vector a the in out as on that of continue saw broader note set Cash products, new focus gross to disclosure services catch-up of

fast would one in that to deposit of continue just growth of as I financial as some services So on. We and still that instant the seen is other the parts not focus have but products. ecosystem

continue lines flow, across calculation, where orient but it's basis. on I'd respect to flow EBITDA a profitability we'll to you trend cash the So to different metric in free lean directionally an free we expect Obviously, there. With EBITDA. the to is cash our grow

expect to time. would flow free our also We grow cash over

question from next Faucette comes line Your James Morgan from of the Stanley.

should to bit we Just wanted And you And anticipate you to, as that U.S. the product, quite frame can you talked what growth Jack's a sense a in rate et and about? about in on rate how to any where U.S. as the continues good. cetera, particularly wondering think versus ask especially mix. like be get question international think focus the could time trajectory as back bottoming to the on U.S. decelerated just international, the the but looks It of growth little seller business. look

into the course. the the that really we in we're that's advance around all the world, make U.S. really function results I than unlocked like much, are think to that I push of I U.S. we greater And a product want faster to I sure we'll on -- growth have now Yes. move changes But even as from much that year, on is past of And that outcomes. And continue have and for for earlier, on that. a development how of is be the a will that significant and then we us. people making we'll org, particular, easy onboarding, making focus beverage. to how can of going product a on faster right top with are standpoint, and much lot product much and packaged in restaurants, we of a is focus there big super line go-to-market and see the on stronger And our gaps food about and this it that said from think be with putting we think sight

with enthusiastic that the Yes. than areas addition focus initiatives we And in markets just see that's growth in for fourth saw can benefit GPV We year-over-year, outside outside grow gross penetrated long in runway XX% profit. in what gross U.S., we're product over currently the now about as And the the a those Square's we think I'd outside in growth. year-over-year, in those profit from the U.S. time. to the in U.S. international that markets markets less the And add about representing quarter U.S. X% our well. we growth we're grown markets we're XX% of in XX% obviously, with And

to well. refine continue our the opportunity help ultimately, U.S. we will TAM velocity with the and that So as we have to push that opportunities significant in and U.S. see outside product the

We now will from question last our take Andrew from Wells Securities. Bauch Fargo

give Deposit looks to that point Xx wanted nice mean who can of Just data I to the Direct achieve a increasing are you're see for it's us assumptions to there and making. see need But revisit you XXXX those depositing the Are to mix you sense that path kind that of like unlocks $X,XXX-plus. direct in ultimately ramp? on deposit the paycheck that kind XXXX? to certain what

relationship put to but fluidly. that to is to And it make utility I get that's works what unlocks And App Cash broad easy going and it's super be. very products. I and and a trust, want the utility from want and see to connected something and we money Cash significant also you do that that I my standpoint. we into think are foremost, to be want Like the first has biggest into App sure what highly can banking with to

with it can to do I be make a pieces what starts, to that of outputs on and sure single comes And already as lot across do app you feel year, I features. can and mean, really great board reliable, on of to another back I plus-plus? of Card sure really to really like on same want meets focused we Cash We to And And make exceeds we can that need a have I easy Cash to Cash App? it with it of really just works and Certainly, as But in people what's and a this inputs, down makes dependable top the that right more But making my and with App it's sure of to the earn cases, my I have what App way traditional that way spend with is do money they it. and that and We within App Cash there. that. like and to great what We're a work and designing of is make them. on as a that the expectations the in know, a of many before, really fast and in on our sing could I customer we one every of as than top bank, but for it's it we trust. do going now hopefully, that a this able they iteration there's feels, traditional lot that lot a constant the seen fact lot comes peer-to-peer functionality a trust. connections just work in get new an bank? It starts, are the I base then said have. would What back that

we've that so meaningful growth of engagement saw Cash $X of reasons peer-to-peer for with you healthy in point App, in awareness Cash the deposit, that to App And in on of at overall Direct capabilities than terms App the Deposit funds inflows profit bringing for growth as as financial monthly over customers our million finally, drive customers we Xx outside those driver strong Deposit. that at with Card same we at only gross X.Xx proof has awareness scale Cash seen bringing keep the Card within in spend products for as point I'd but terms to App. And more In for we to our more instant App ultimately in monthly App us products services XX% Cash are our actives, and in inflows the we're way Cash to was ultimately more XXXX twice banking is sending App surpassed means point in App, peer-to-peer well fast the XXXX. higher engagement using Cash and active. actives a the than inflows, We financial overall billion in Cash Card. not are actives where Direct to here. with bring growth Cash ability awareness as see overall per behaviors Card to that more banking actives funds Card, that true in Cash App giving on over Andrew, spend more monthly people growth Card you Xx Direct And seen And and where is services key attached, monthly also Cash our growing and and Xx engaged in their as XX Deposit. What driver a more what their active, base App been actives as the we've Card now which awareness

a ultimately deeper then into financial thing, services people there's can Direct that's Card working that with bring the the here Cash and to App kernel suite of key So Deposit. we

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

all disconnect. You may