Slide 1: Q3 2024 Investor Presentation
Q3 2024 Investor Presentation investors.block.xyz
Slide 2: Forward-looking Statements
BLOCK 2 Forward-looking Statements This presentation contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements can be identified by words such as “anti
Slide 3: Q3 Key Messages
BLOCK 3 Q3 Key Messages ● Strong Q3 results as we delivered gross profit growth of 19% year over year, and year-over-year improvement across all profitability measures in Q3 ● Improving Square GPV trends into Q4 with an improvement in U.S. GPV growth year-over-year in October. We expect U.S. and Globa
Slide 4: Growth at scale
BLOCK 4 Growth at scale Gross Profit Strong year over year gross Corporate & Other Cash App Square profit growth Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2024 YoY + 21% + 22% + 22% + 20% + 19% Growth Please see the appendix for a definition of Corporate & Other gross profit. In the fourth quarter of 2023, we
Slide 5: Focus on improving profitability
BLOCK 5 Focus on improving profitability Operating income (Loss) Net income (Loss)* *attribute to common stockholders 14% margin 13% margin Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2024 2023 2023 2024 2024 2024 Margins above are all calculated as a percent of gross profit. The quarterly net i
Slide 6: Focus on improving profitability
BLOCK 6 Focus on improving profitability Adjusted Operating Income (Loss) Adjusted EBITDA 36% margin ~5x YoY Growth 69% YoY Growth 20% margin Q3 Q4 Q1 Q2 Q3 Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2024 2023 2023 2024 2024 2024 Margins above are all calculated as a percent of gross profit. Reconciliations o
Slide 7: Block Financial Objectives
BLOCK 7 Block Financial Objectives ● Drive consistent growth while ensuring profitability: pursuing balance between delivering consistent growth without sacrificing profitability, setting the foundation for long-term success ● Maximize gross profit: committed to delivering positive gross profit retention
Slide 8: Cash App
CASH APP Cash App
Slide 9: Bank our Base strategy
CASH APP 9 Bank our Base strategy Cash App aims to become one of the top providers of financial services to households in the U.S. which earn up to $150k per year ● Expand access by launching best-in-class financial services and commerce products Increase gross profit per active ● Earn customer trust b
Slide 10: Continued strong growth at scale
CASH APP 10 Continued Cash App Gross Profit strong growth at scale Gross profit growth of 21% year over year driven by strong performance across Cash App Card, Cash App Borrow and our BNPL platform Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2024 YoY + 27% + 25% + 25% + 23% + 21% Growth
Slide 11: Cash App Key Performance Metrics
CASH APP 11 Cash App Key Performance Metrics Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 INFLOWS FRAMEWORK Monthly Transacting Actives 55M 56M 57M 57M 57M Inflows per Transacting Active $1,132 $1,137 $1,255 $1,243 $1,233 Monetization Rate 1.43% 1.48% 1.48% 1.53% 1.52% OPERATING METRICS Gross Profit per Mo
Slide 12: Driving greater engagement and monetization
CASH APP 12 Driving greater Cash App Gross Profit per Monthly Transacting Active Growth engagement and monetization Gross profit per monthly transacting active growth of 15% year over year in Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2023 2023 2023 2023 2024 2024 2024 YoY 18% 23% 14% 17% 16% 17% 15% Growth
Slide 13: Cash App Card actives growth
CASH APP 13 Cash App Card Cash App Monthly Actives Cash App Card Monthly Actives actives growth Cash App Card monthly actives have grown as a % of overall Cash App actives over time March June September December March June September 2023 2023 2023 2023 2024 2024 2024
Slide 14: Square
Square Square
Slide 15: Strategic priorities
Square 15 Strategic priorities Improve Square GPV growth through new product launches and go-to-market initiatives ● Building a rock solid and flexible platform Drive acquisition of new sellers ● Providing a local experience to sellers of all sizes ● Growing with artificial intelligence ● Finding more
Slide 16: Continued strong growth at scale
Square 16 Continued strong Square Gross Profit growth at scale Gross profit growth of 16% year over year driven by strength in our software and integrated payments and banking products Q3 Q4 Q1 Q2 Q3 2023 2023 2024 2024 2024 YoY + 14% +18% + 19% + 15% + 16% Growth
Slide 17: Showing growth and diversity of geographies
Square 17 Showing growth and Square GPV by Geography U.S. GPV International GPV diversity of geographies Q3 Q4 Q1 Q2 Q3 YoY Growth 2023 2023 2024 2024 2024 Square GPV is defined as the total dollar amount of all card payments processed by Overall 11% 10% 9.2% 7.8% 7.5% sellers using Square, net of re
Slide 18: Guidance
BLOCK Guidance
Slide 19: 2024 Full Year Guidance
BLOCK 19 2024 Full Year Guidance For the full year, we expect gross profit of at least $8.89 billion, or 18% growth year over year. We are raising our full-year outlook for profitability to reflect outperformance in the third quarter. For Adjusted Operating Income, we expect at least $1.56 billion, or
Slide 20: Q4 2024 Guidance
BLOCK 20 Q4 2024 Guidance In the fourth quarter of 2024, we expect to deliver $2.31 billion of gross profit and $355 million of Adjusted Operating Income Q4 2024 Gross profit $2.31 billion YoY growth 14% Adjusted EBITDA $725 million % Margin 31% Adjusted Operating Income $355 million % Margin 15% We h
Slide 21: Appendix
BLOCK Appendix
Slide 22: Appendix
BLOCK 22 Appendix Slide 4 Slide 11 & 12 Corporate & Other includes primarily emerging initiatives and intersegment eliminations. “A transacting active” is a Cash App account that has at least one financial transaction In the fourth quarter of 2023, we began reporting the financial results of our BNPL
Slide 23: Reconciliations (unaudited)
BLOCK 23 Reconciliations (unaudited) Adjusted Operating Income (in thousands)
Slide 24: Reconciliations (unaudited)
BLOCK 24 Reconciliations (unaudited) Adjusted EBITDA (in thousands)
Slide 25: Reconciliations (unaudited)
BLOCK 25 Reconciliations (unaudited) Key Metric Margins (in thousands)