Block (SQ) 2 May 242024 Q1 Earnings call transcript

Good day, ladies and gentlemen, and welcome to the Block First Quarter 2024 Earnings Conference Call. Today's call will be 45 minutes.

And I would now like to turn the call over to your host, Nikhil Dixit, Head of Investor Relations. Please go ahead.

Hi, everyone. first earnings our joining for quarter call. XXXX Thanks

with have Jack today. Amrita and We us

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

participants. will from take During Q&A, conference we call questions

be results goals. as by materially We the would these uncertainties. cause well forward-looking also are historical decide future of our the that our a at of Please those differ other statements by results considered Also as on We us except any required statements to looking. remind guidance call fact and statements discussions factors be could or from this All our statements statements, to include to should making an be filings this information disclaim may These available risks forward-looking statements. are contemplated for at we our call. Actual as shift targets the away any and to targets forward priorities look our everyone on and strategy could than forward-looking forward-looking subject that to statements statements indication note to date. like obligation from not will long-term to goals outlook, results based We of with take a performance. discussion as any update SEC time. differ. move of our be law. These and of Reported today's deemed forward-looking on could that

Cash services by App's bank referred banking to discussion offered Further our this call those partners. of during

we evaluating gross framework, including discuss metrics Rule the also sum and to Rule of operating profit we margin. adjusted growth investment With our remarks, income our these will Within of of XX. are XX, related

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

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

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

you us. X letter of X top my Square on In joining of all become Thank I to and providers for focused last priorities App quarters, the banking our strategy shareholder services. Cash for the

This quarter, focused was my the letter Bitcoin on strategy.

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

In was stories our talks news Amrita can address report these sorts yesterday to full a there of lack context. directly. about Before general, performance, I wanted

believe the but First, disclosed. that inquiry new investigation we reports do not in there existing relate these that to that DOJ we've Block, the are by any previously rather the

the of the investigation the outcome time. the in this needed was In OFAC, these risk was action our that a we of thorough Letter critical who countries. identified to or transactions they sanctioned not investigates report. a were them, information engineering and the associated reported was then which the us in is included that threats, signals to further Action with when Foreign and is there where proactively no originally scope OFAC with omitted in compliance of the review stand Second, transactions XXXX, We This determine first at published. article Office by work us article. we from how it voluntarily lead Assets team, transparent supposed Control, the to conduct issued potentially were No process included

financing to preventing relates Bitcoin, control adversaries. via in robust we it have exposure environment terrorist from a as place mitigate Third, to

time. to firms transactions For real screen instance, we use industry-leading blockchain analytics in

customers the course, industry which to important financial restrictive engaging we limits with activity. keeping deliberately are calibrated verification Bitcoin which bad an some the for also of on-chain of to and warranted, for contributor when file prevent withdrawals, suspicious reports broader most activity maintain our safe in And ecosystem secure. is We the require products Bitcoin identity and

We take Block. compliance at seriously

of our Our culture is work. to compliance foundational

transparent empowered audits radically including program supports to whistleblower that a through improve have or our multiple We from through channels, inputs, Employees issues are us. guidance our self-identified different including raise me anonymously number the hotline. continuously culture directly We on based regulators. our compliance to issues, of and

at have preventing exploit and the system. company is always to continue to global try this. will Adversaries financial No perfect

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over Amrita to with quarter. it talk I'll turn about the to And that,

keep brief shareholder our we've Thanks, on as the my Jack. our included I'll guidance remarks in of financial and performance letter. information discussion

Adjusted first We was the Gross up the quarter. adjusted during delivered strong results company across And million, EBITDA Xx XX% year-over-year. doubling million, $XXX $X.XX operating year-over-year. with was quarter. the nearly fourth up profit year-over-year, consistent income $XXX was billion,

gross outperformance And By guidance million, business, to Cash profit XX% compared billion, $X.XX App's gross up our profit was driven mostly XX% $XXX Square's Cash was year-over-year. up App. by was year-over-year. Gross profit

where highest year-over-year across had monthly our actives. fourth were quarter quarter We active the in saw of since per XXXX. Later, strength growth XX% the Borrow up for App Bitcoin, and Pay XX Now, Cash Card, Inflows Cash we Buy App million

Square's strong moderation more GPV line the growth. broader growth with was products. ecosystem sales as in of This in rates in on by and we continued offset same-store our our quarter software than attach saw expectations was banking

expenses. range the leverage showed we Our cap on our overhead achieving and ending profitability expenses, corporate of improved a below quarter XX,XXX-person as across discipline

compared adjusted XX $X.X adjusted to was the billion, represented rate more months the X.Xx ending prior XX% cash XX% period. March, than to flow up XX the and in EBITDA, For compared months, improvement prior free the an in conversion of

expectations remainder the our for to the of Turning year.

of reflecting year. the profitability, outperformance QX also for raised only raising year reflecting gross not the We our profit full are guidance our both for XXXX but the remainder and expectations

are at XXXX, year-over-year. we profit gross growth of year full $X.XX expecting now or least billion XX% For

as We with expect slightly and the Cash lap App's quarter's growth quarter. relatively meaningful fourth to quarter stable first benefits, we XX% some the growth cost pricing gross second from profit moderate structural through from

we strong growth In gross improving as profit Square, profit moderate to performance growth back same-store the half between comparisons, and pricing XX% the with the rates. banking growth more year. and we lap growth be delta we to from rate prior to narrowing quarter's from GPV favorable For a gross year, growth first expect behind changes stable of expect GPV the

for year-end. further Square, summer migration and improve These rolling them the include notably for These on completing beyond. single and App to initiatives focus that our product growth benefit several this a our remain velocity. we conversion to into track, Square, most and and Cash on Afterpay and on to strategies Card expect our app Cash orders continue initiatives out XXXX by and testing We launches upcoming that App

marketing For high-return gross back growth. now we and operating With that areas and profitability expecting the adjusted in margins like underway profit. efficiency the income improve see drive future can billion XX% in to our initiatives we XXXX, invest to are year half in overhead, corporate of on opportunities $X.X sales costs or also at least in structural

Rule to for of of goal progresses and at year implies XXXX. in our now least XXXX. guidance a XX achieving an our a us compared of of to is This full XX prior improvement towards XX Rule of guidance and updated compared Our XXXX Rule

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

comes [Operator Huang at JPMorgan. question Instructions] And Tien-tsin from your first

question on asked up wanted I to, a Jack, follow I last quarter. you

call Block from can be think new to that. me if some are have want what product launching unannounced asked I know mentioned have just in And to the they the give to you if of it curious so progress about enhancing expect I'll much you that products? velocity and wondering a more place? across a is incremental already report or on entering more where that, about higher focused so I'm board, us you what ask close you're you or lot faster Are you products are you. you on in I investors categories of I that

Yes.

sure We're and we're our velocity on change work. that main focus that play seeing just on be recently, to Square is focused in in So team, we're our focused disciplines. more making reorganize that One we'll much ways. our did stronger more engineering design putting This more And with more development two a the and start to design. through in here on big engineering and much work.

focused things. we're And we're doing most important making is on that scoping, second the the sure way

as the to the side, sellers right up ways on now mode. for us important and their I stay work reliability, that On want if Square most sure for have to them thing such we is fail, focus networks even making we that that off-line the

need, mentioned and second products focus food doing Download single in most you action. launch only Square call but help the everything on and very we to app, we've of there's with is our is all year, immediately so banking with simple to what we're app. this track our including which not have past, a local that and And have about within beverage. that number retention a the The you one to Amrita talked acquisition. of things on

big And one. then another onboarding is

under past, And that down on successfully onboarding of our want and they in the us taken should and close how around. is our to on about people X have from took complete they to that sellers for to steps banking effect pretty XX to ecosystem Square the that steps that We best something as the XX the about for takes talked and great see flow minutes what watched some And coming doing. side. aspect it have rolling we've so minutes. think we going importantly, to I results, they're merchants. up of be out differentiator positive to more most And the more we saw small and we're Square And than sign audience months. our much stick We out positive all we're new expecting, rolled ecosystem a a X in

work super had the of to There's year which of App some Cash expand the hands out continue we're into new is with products, put this to there a we've some but both on such I features parity point the to of going Card, something that Square, lot the and work millions get to about. lot question, excited there's of our think and course, of To as Afterpay of to second Cash on competitors. of are your a

we for of products that that well. really as going iteration. And we new us, believe. lot So new a iteration of is stuff lot the some customers about But a thinking more of is work course, unlock we're have to

next And we will question take with Chiodo from UBS. Timothy our

Cash little I deposit App be that you rate run want the seeing direct in and users. a to bit adds dig might new on net for

record gross drive mentioned for So to you that DD last was quarter, users. adds of overdraft addition protection the helping

wondering was that I that, and combination So of step rate. and features, some high-yield live really helped savings support to have phone maybe plus up if the other maybe run

it of And around products the the Billpay potentially where as today? part rate cash step the gone to card could cash worked into some addition of second is if the run Afterpay BNPL maybe it we is mentioned, or part newer So as further with being or, it. you is, up card then call

question. the for thanks Tim,

seeing as a it in strategic years, Our is us, more new Cash actives. The priority, App our started direct but we XX not been financial know, services more deposit. top few meaningful bringing a base, way banking is of last one is for million we've adoption recently. you prioritizing which our monthly that to concept organic about is for Banking

and our that Now on focusing customers. longer-term relationship higher with driving our winning this we're efforts

with in continued as volumes with second, product; And paycheck focus: faster we quarter-over-quarter around grew What key a than one, growing inflows. the about was around areas products. growth and to that we on market go actives deposit saw March here, two there's we basis, how think paycheck overall of those

we're perspective, from App only customers achieve can web bank goals. but a that Cash them can compelling offering. to around not features products get their paying We're than want our our they to worries. product more we're our table initiative, offerings That's say savings card spending they what prioritizing also insights, make financial hearing on initiatives stakes with at how That's And around checks. That's customers a From bank. Card. without any That's around allow that want you hearing Billpay. we those a Afterpay

drive incentives a conversion. way and From them we'll to these it offerings bundling products, to these together, ways discover easier and be a as all that's with package that's we through understand testing go-to-market in makes our of the to And it's customers looking and other app. bring packaging. products Again, perspective, then that for

done us much this that and in together of much of more with haven't come see as the year. back next the We half direct of But do yet go-to-market our features of efforts deposit. year terms in into this you'll

with App but are Borrow, seen it's similarly some effort, or deep today. several on we've what that are takes where they or direct Card years, to multiyear it's conviction Cash bank time, we these time. takes base get Similar to excited and and And to one a have with App with It very think we Cash to deposit, it about. scale

will our Research. from next We Wolfe question take Peller with Darrin

being same It's great at you improvement guys we growth a in strong. notable now, to the expected ongoing guide balancing far, while more than see EBITDA the the gave so with increase and it, time,

color more now What model drive progress it EBITDA identifying that guess on that for uptick? you see you in on do if else can maybe drive in to further what's able us you're on efficiencies of the And the what I going can So was just horizon? in little that give forward? efficiencies terms that a context,

ever the Darrin, year. about nearly question. thanks highest-profitability was again, a for the of Obviously, talk saw, end at high on I'll the in what start out we're of with of doubling first for quarter full EBITDA guidance beat our basis. and the terms about OI quarter million adjusted then and first with what an looking from metrics you year-over-year our a perspective, $XXX the

two across three But Square continued and kind I'd out. there's perspective, of expense out. the App, three XX% there's momentum think and an key and discipline point growth things respectively. I ecosystems, from with growth, each things Cash growth of to Obviously, XX% strong call key

is the first and cap the our remained strategy mentioned, level First we work, quarter. which of our personnel sharpening scoping of right at and our our as under the prioritization cap, driving and is end Jack XX,XXX-person

want third, it's our structural out-of-period of overhead, established the improve to our continuing do fees. of to $XX QX, Second, and and also costs releases ways note, related first corporate it's each prior driving called it's or software leverage that data areas can letter, fees, we million the And estate, across professional to periods. our in benefited items we've whether And T&E provisions of real there. on in focus from around shareholder as mostly out in in quarter, in risk-loss we

to thing the first So quarter. that's an important for note

we've and full end full guidance growth we as also when Square expectation Cash strong run adjusted from of we initiatives around in to high leaving for the for remainder the More flow-through broadly, year. keep year, of of benefit should the the also profitability only of of we for our grow efficiency and look in expectations at we not particularly improved each our our invest but our OI in terms the where That and where EBITDA and in tight both perspective, business, the for amount a future basis discipline in an how profitability in sales raised half relative the to of us App screws of year to our remainder businesses QX the see expect room of the but marketing. continue growth, also for incremental to but year, strongly back the margins we outperformance

of remainder that through So why drive those can at are different and we're the we the we think continued levers profitability looking the year.

question take And Rawat we our will from with next Harshita Bernstein.

and little drivers assumptions some talk the there and quarterly XX%? Cash bit year half, and year as and and growth also What maybe ability color less is half gross so. about nicely scaled on your of just grow And to but to over elaborate the Square. just you and second determines Borrow past for as can a then benign? Square Amrita, earlier, more the You of continue first revenue cadence or the Loans this App willingness follow-up, profit gave also, stream a credit

Sure.

the me remainder gross year. our of profit let So start growth the assumptions for on

from the full profitability. the Square that our both expectations the the both as now billion, profit quarter least reflects a expect gross obviously, year. profit $X.XX beat well year for So during gross to That billion year, outperformance App raised for at year-over-year. improved growth with the about of from first $X.XX guidance XX% as modest we've equates mostly Cash of on full We remainder and

component look sort expect this down you its we App slightly If that at into grow will Square than parts, of breaking Cash year. faster

mostly for of profit We structural second are back And the expectation structural going half guidance be improvements our Block the in with cost level, implied mid-teens lapping to gross the these pricing and some demonstrates, of half at growth behind changes a cost around the us. year.

we key growth orders or are work plan a at growth XXXX and puts and half of hard cadence at ramping the be Card, around now and our the of Cash Afterpay year, to single strategies this on the impact. the of model, whether benefit of expect App Many back we're that app to migration the the and it's into initiatives XXXX remainder and That's year. less takes the sort of through

the think asked around was you second I that question Borrow.

the seen scale what historically. eligibility in while with year-over-year. we've with is with been strong on product number line actives the loss rates driven requirements. while than Borrow growth shared strict This Xx responsibly, that's growth in up first This have primarily We quarter, of is more to this able we've loan by originations increasing maintaining

ecosystem inflows then loss Borrow drives App number stand-alone across does different invested unit risk a as of a And are products. compelling Cash own, not product, economics strong only that but its on or greater benefit really into a monetized spent it positive have net of through

App monthly usage. and seen on strong from a Borrow of after actives we rates receiving Cash Borrow offered a conversion loan. fact, we've repeat nearly those loans making XX% In Card And see transaction

or of Square working product Buy product, are management in on what or Now, products. short Later flow Loans we duration we capital that see to these products act sort see Similar and Pay a cash very as a

with capabilities monthly we behind it for keep the similarly across actives. very our So repeat risk-loss Borrow, to we're growth usage and machine customers. area about product, continue ramping strong Borrow our we that feel of so excited And to it's see an this and learning

We will Ramsey El-Assal from Barclays. take our next with question

cash In Pay you would there the I the and with the about product Later App preliminary the like Cash Afterpay capability? use that, Now, view toggle about card be should or share users be wanted words, able between Pay customers look And also, other integration which any to the of Are the to with Later how of any integrations think many other opportunity? customers Will ask eligible Buy Card. Buy How you do to us? we No, sizing app, example? for what that like? have debit credit in and might could card

Yes. about integration. excited so really I mean we're this

Afterpay team is acquired Just time context things. say a bringing you, forced App, main executing we fixed merchant And on Cash some our bring some is the is bunch network within integration too way and a And really those an Cash and together. of network ago, two would App for that quickly. One discovery. the issues, I that having we the Square now

hope lot what power to a visibility our So seller ecosystems, lot side. around and merchant with a the achieve and we combined the of the on of both local of

putting said growing large to, and top and on the that the that App that Card, of on that Cash super network App how Pay, exciting. Afterpay well. is App I is is as how Card and side the On earlier, of other as is Cash Cash Afterpay large

started it have rolling out. We

using on use people we're As And and to or able roll it, excited exciting. it so decisions we product, for they we how out on and not looks valuable how valuable. based all think at we'll but find ultimately it perceive us to how XXX% we're when time be it's tend looking how what out But over you it. taking it some roll it's they see making it, get here, really here, to use to people it with any are be like it, finally

add I'll of a And that, of couple data points Ramsey. just around

we've got, that already total billion built-in opportunity million Afterpay to more in Cash over App this XX past who card, having the monthly year. bringing the an than audience with $XXX with First, spent is have of actives

to sort into Of start be we course, convert easily able ramp with eligible we're small an lending on of that and, to as any product, and purchases small certain will Where see, the Afterpay actives going based transaction. start signals

XX% and coming Now, we're Jack said, so into We've directly of the testing this Cash engagement basis. is quarter seen than now growth helps who growing Afterpay a And Later visibility far App excited of access utility and much more on done XX% much we've GMV rates a As to scale gross This network it growth, we've Cash here already. for nicely ecosystem. begun own, first in Buy brings to Pay strong months. customers in the us: have which, and its profit App bigger across merchant year-over-year partners the drive around the on attach

customers more the reasons we're funds Just if giving second they the strength payment to The use driving in of wasn't its that App App. built Cash has wouldn't sales Cash for example App so into years, merchants. a spend Pay inflow App Cash growth Jack now happened Pay. the regularly, have more can can an App and and the Pay customers team funds is and across ways tool that network through mentioned, as And of that piece, it it their of Cash more Afterpay Cash enterprise the

while We million ended Cash X had quarters, was App each monthly monthly XX%, more XX%, quarter-over-quarter. Pay, March up quarter, $X active the the GMV of actives million across X than adding last

integration the and Cash I growth strong towards Afterpay. more very App milestones out and a So between here, think proving

our take next question Trevor with Williams from will Jefferies. We

have just to seller of GPV have potentially in comment if comp-driven of lagged the growth to your retail that some card-not-present those could been in GPV. what over half, see much accelerate overall few The second changes dig last is consistently of the pretty potentially those. the that starting into benefit wanted you growth versus the from rates, within of dynamics GPV how I could growth quarters, both made? unpack guys then go-to-market have you Amrita, some And on some

I of of Yes. hope more question, it's that amount comp, more a tremendous underway likely of will we in on shift directly the favorable to think work of just the I into but Square comp-driven got answer XXXX. end mean very your most terms tide GPV we've

SaaS just we our Square Now the in with first X% was growth, was in we our in the strength shared currency. of back in at of that as year-over-year, growth growth products the attached growth see the And we QX was to our that up, improving quarter, ahead, GPV you products. U.S. as X% the back and quarter was on half stable expectations to noted, ahead slightly the XX% on GPV XX% while of line to up non-U.S. or which banking look call. Again, gross profit based expect, year. constant

shared and want think the We product increasing rates, can of satisfied growth with tide. earlier, in turn to we're we and as not growth XXXX. improve changes that some Jack these velocity, But go-to-market our

new restaurant encouraging, it flow summer; Jack more which us service much mentioned or new as bars quick-service rolling be experience. this completed the and sellers we're and critical onboarding Square I deposits testing verticals to faster food in salons, Specifically, for out That on earlier, or be work, we'll to so like beauty for orders sellers. to where I And that features point began migration, with those from onboarding with pre-authorization flows We would sellers. friction reducing at our noted, and to and sellers other track in for is join beverage intuitive results minutes onboarding as ecosystem are a July. helps to XX-plus the

contracts. then And

think complex give early, doubled. And of wins And able our our with retention in 'XX. we more from contracts go-to-market It's deployed. tools about to rolled that reach contracts out also to to sellers December we second seeing motion, that we are sales we attached contracts of had that needs. half team cohort the the and was than U.S. but the the are March more we're improvement As critical what saw when sales them be number

as of lines do believe and lean the to GPV. together we we go the future So in the half that improve the to especially can that that products in these we to year to here see market, trend more and features into back there's across come

next question from Fargo. our take Andrew with Bauch Wells will We

we that seen discussed. just to strategies I that magnitude on and expand past. help is improved said the us go-to-market the some expanded you product guys. just of there really for what velocity. you And if the understand you proposition just wanted contracts what around the unlocks maybe could in for And layer Square the a of maybe if that mean, into capabilities that's can you win like franchise haven't I the Bitkey better, that we value

who have on slightly recognize and we saw different do still today. in with also what of on were because some a tact a to We it of this these out, contracts there many are years merchants our it predictability into against we contracts. we goal. merchants. They're start lot see people free We pretty our of that pointed were contracts, their cost Well, predatory a and appreciate get small hardware. them for it to you helps to just is them this took peers them it something locking allows Yes. since different because doing funding us And

sales with were contracts saw attached point, that. And U.S. from of we March, you be more wins to to if would number look at December the double. just it than So one

us. is this the customer and portion of the for it's a observing what better side doing we're are something go-to-market much more. working. for And more doing. still we're but lot therefore, peers needs, experimenting and we is big attractive seller is and that we're A just on us, for far We're really want So what early to looking, we're observing our do

the much think we little a on we switched didn't thing too I working. in thing. bit past, thing relied the one when work, that And

the a and experiments like go-to-market, experience, we also our All and like field in just thing sales, sales force. a focusing onboarding big deeply really around on looking at are but these done which Now we've our on that, product like things is the looking of everything lot doing verticalization really course, focused of contracts, at compound.

some that side doing or will on the that mindset when recognize and us we'll won't improve to really And working in working will something some experimentation that well. is I invest But with help we're product of being much everything the them think faster and it, do. them work, heavily mirrored ones of not work, as

opportunity On the an franchise is us. this for capabilities, yes,

on where year, apart, the people will a addition know focused that to a and home and parity that there's that beverage. this the set in driving and breadth engineered we beverage. of. And a then a product design depth really focus to And to food make our We is that to really them. showing it's of then something us question doesn't and get product fail. of those on number lot continues our the is first banking our us that better better advantage and fixing our And lose renewed this as to of goal all ecosystem. competitors for features be us in a stronghold a of all on and food get take We're gaps are We

our take from Kupferberg of will we America. And Jason next question Bank with

wanted I Square a for to the side here stay minute. on

think a numbers little go there. see software trying deeper the banking, high to banking decelerate could you It's there. had bit maybe But hoping certainly because and in surprise level, into sources the software said, expected where QX. a And at touch upside a which modestly. gross accelerated specific to were good obviously also, international drivers obviously, the You you little profit just the growth were bit on I businesses and to unpack of parts of and

Unpacking just profit as growth trends last we gross we more pricing our for was what repayment drivers side What bit first continue and of Loans Instant to banking capabilities between strong and of Sure. the gross quarter we more Maybe year-over-year first a quarter, healthy banking. add the the on unpack and products quarter markets growth. the contributed quarter. XX% and originations, the international saw made transfer key year. geographies. delta up increases, banking from the first. was drive in Square results in And volume that GPV gross some organic more, then was as banking for second this Square billion grew also that to lap driver profit grow profit $X.XX QX impacts, also pricing in year-over-year of we to we more facilitated now, XX% in in saw

International are launches differentiators January, access options for relative up Clearly, first in to profit. well profit international and recent the gross From Japan in was U.S. gross has product of XX% XX% represented the quarter, a initial an Japan. experience in to perspective, exceeded financing seamless loans GPV year-over-year for outside existing Square's The quick instance, and funds true of expectations. SMBs in markets grew XX%. our

vertical points growth We our in across continued runway as markets X% there Square is believe And sale in significant than see ecosystem. we've long less for well we're deeper the the of to a ahead penetrated here as growth outside U.S.

So and into. we the be growth continues areas focus that key show areas and each of lean for outsized will strategic to us

of grew points in vertical quarter. and sale, the on profit year-over-year gross from appointments retail first restaurants Specifically across products XX%

KBCM. Alex our Markgraff with take question next will from We

Just sort growth. growth maybe a curious tax then the converting direct of sort any indication as be refunds entailed of deposit excluding deposit. might in any tax sort payroll folks follow-up, XX% of with that then is And a existing direct into sort couple overlap impact overlapping cash, those the there And tax on today? exactly actives, Of inflows just positive what refund actives? just of of what in not are the of quick

QX, a overall center direct for a neutralized the than for in as about with customers impact the impact is services App, tax I so that for have and they're it your sort tax free More QX. deposit I'd we the faster grew direct financial paycheck Cash our seasonal that inflows deep to inflows, is taxes. that bringing discovery ability initiative engaging put a deposit noted, front and in say So the get faster us through what in initiative our as capabilities, it broadly, in our offering one funds represents of

we the And direct that's of look you so in saw direct clearly QX, deposits And at deposits in broader the base that alone. than paycheck larger as growth as well.

initiatives driving convert deposits. A our broader a financial to we together is customers. all and product from services in customers. the bundling of compelling is, awareness really, offering, I got mentioned that's tax perspective paycheck deposit our bringing around that of potential those the piece financial broader around around about to the more much direct discovery of a in and in us, including earlier, And direct services and those But us initiatives customers is it opportunity as for for course, pricing key tax deposit direct paycheck around

our next with John Raymond Davis will we question take And from James.

Square wanted on impacts recent both as settlement to the I with merchants how networks, merchant cuts, as and just that the the more specifically. well on the on interchange thoughts surcharging the just side touch Jack, and

Sorry, what here? about you are talking

surcharge merchant the well the Visa effect as next Sorry, interchange year. ability settlement cut going on to in with Mastercard the and into as

to how spent an have ability I this this. for know a sure on and is do of have the policies on time particular not I'm now. different question. different on customers, I We their and active don't issue. a answer haven't conversation Square sellers surcharge it that right countries lot much

We this. something is do. are in Australia out no on But rolling it most where that merchants other comment that

X% growth point and the Then X,XXX Square the GPV quick and throughout you basis growth year? Okay. in on versus of I growth growth sustainability a just difference for the banking GP about XX%. relation just balance mid-XXs the of know Amrita, of the we of maybe kind how GPV seller question But and like was the between Square quarter. noted should think

Yes.

of what improving we to delta noted favorable is GPV behind the back interim to gap see same-store comparisons. the we in to in narrowing As growth. expect I or a of we GPV profit growth the the stable half remarks, the see more as year, That's be and expect between growth gross

pricing of And a see we moderate XX%, of that expectation we the sort gross expect year. year. bit banking that first profit stronger growth that's prior from changes So some we from for quarter, the the and as lap performance remainder the to of the

and the related can Square. believe we're to hard referencing From the Obviously, initiatives the as remainder the perspective, on been throughout hit key go-to-market all product year, perspective. a Jack's of at XXXX that, turn and the they of our work tide from

take And our Bank. now we from Deutsche with final Keane question will Bryan

really just now volume. XX% higher level outlook then to on with corner, profit the Can high talk maybe about changed this the obviously, and growing It to solid Congrats the Afterpay. quarter to consistently get last what's a have be the Afterpay of quarters. gross you Maybe those volume And there? results for having better what couple ask the are drivers than here. want I turned seemed growth? to growth jumped just

in which to we strong rate. but higher consumers our single-use allows gift with in and from app the merchants driven U.K., our our U.S. which and both Afterpay's network, Sure. and growth I also even that engaged you and Australia saw profit can start and GMV in by payment similar QX highly growth more so the than Single-use is quarter offering the us was we at both is strong is flexible via XX%, reach personalized growth with offering. across product offering. on perspective, What saw payments the cards that growth a a customers quarter, this, merchants rate customer merchants. through Afterpay recommendations customers across to with shop being at to payments set noted, so from enables aren't gross a of broad as app Afterpay a fourth perspective, And acquisition while merchant profit gross GMV that XX% the

gift sales from retailers online Afterpay. across X that eligible out Buy team it driving of spread a customers core our merchant been payments products. of products leading has these a card with pipeline And variety across allows gift then as enterprise well growth new as also Later product is to and of these all card of Pay Afterpay's purchase an products, newer strong a some Now,

the Later. newer in these terms of stronger improved profit think, have some of that, rate also And of Pay products relative Now, through I you're monetization growth. to do Some what gross come Buy seeing is

Stepping customer-facing between embedded operating of here changed broadly the at excellence back teams App is, our your question, Afterpay as more now sales in reorganized and team, is teams. first to what's ecosystem reset and Cash a our noted, our high we've our team. of our the strategy on Jack part product-led fully and level

on App to Afterpay and only think stand-alone is of attributable Pay, deeper ahead we're so now excited but has we're initiatives strong Cash the doing integrations much as which Afterpay the Afterpay Cash well. App of what's And which Card also with I that with some to team the see growth, not very for

now program. ladies conclude This And in thank and gentlemen, disconnect. our and program, participating you for today's you all does may