Block, Inc. · NYSE:XYZ
Block — Investor Day (2022)
77 slides from Block's investor day presentation, Jul 17, 2022
Slide 1: Investor Day 2022
Investor Day 2022 Square » Alyssa Henry
Slide 2: Forward looking statements
SQUARE Forward looking statements During the course of this Investor Day, the executive team of Block, Inc. (the “Company”, “we”, or “our”) will make forward- looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Ac
Slide 3: Online Ordering
SQUARE Online Ordering Marketing ll Pay Invoicing Website Payroll INVESTOR DAY 2022 2
Slide 4: = “ B Employee ID
SQUARE 4 = “ B Employee ID Ihe \ ! ( # SHOPKEE Point of Sale eCommerce Inventory Inventory XN cTRL+C INVESTOR DAY 2022
Slide 5: Commodity
SQUARE Commodity Payments es .. Ki : is A oRDERNOW je () — the 2 WET ey “Ay yy ~) as Niche Software Disjointed M&A Roll-Up s
Slide 6: A cohesive ecosystem of integrated software, hardware, and financial services
SQUARE 6 | ie Square Staff Crew Timecards Payroll ea Customers 1 “Next “ \ 6 Faas Fe \ i ( Si im r = » solutiotr } _ Insurance | WhenlWork Schedulicity - TipJar Raucci ' irre On! perme Sele power Acohesive ecosystem of 7Shifts ) | Homebase Marketing Loyalty integrated software, hardware, and financi
Slide 7: Our differentiated platform approach
SQUARE Our differentiated platform approach Square Microservices* H Create New Product Micro
Slide 8: Our differentiated platform approach
SQUARE 8 Our differentiated platform approach Square Square Square Square Square for Square for Microservices* Payroll Online Appointments Retail Restaurants Employees Employees Employees Employees ove highlights rep
Slide 9: Our differentiated platform approach
SQUARE 9 Our differentiated platform approach Square Microservices* s of busine re ecosystem are more r
Slide 10: Our differentiated platform approach
SQUARE 18 Our differentiated platform approach Square Square Square Square Square for Square for Microservices* Payroll Online Appointments Retail Restaurants Employees Employees Employees Employees Employees
Slide 11: Seller Case Study
Seller Case Stud) = ze Stadium = Square Register Square Terminal Square Point of Sale Square for Retail Team Management Square Online ge Gift Cards Invoices eCommerce APIs
Slide 12: SoFi Stadium
SQUARE SoFi Stadium Leveraging the Square platform No.9 Jersey $103.50 Order#00000095849 Transaction ‘Accepted View Full Reciept * Order #1294850 Confirmed
Slide 13: Multi-year transformation
SQUARE 13 az Multi-year Gene transformation _— CAN - | Kale Salad @® Single product Ecosystem of products Omnichannel software platform & INVESTOR DAY 2022
Slide 14: Multi-year transformation: gross profit by product area
SQUARE Multi-year transformation Gross profit by product area ~80% of gross profit in 2021 generated from software & integrated payments, banking, and international. ca) @ International @ US. Banking @ US. Software & Integrated Payments ; @ US. Sidecar Payments 2015 2016 2017 2018 2019 2020 2021
Slide 15: Multi-year transformation: gross profit mix by ecosystem adoption
SQUARE Multi-year transformation Gross profit mix by ecosystem adoption (# of monetized products that a seller uses) 40% of gross profit from sellers that use 4or more monetized products. 100% 75% 50% 25% 10) x @ 4+ Products @ 3Products @ 2Products @ 1 Product 2015 2016 2017 2018 2019 2020 2021
Slide 16: Expanding our addressable market over time
SQUARE Expanding our addressable market over time 2022 2020 2017 2015 2010
Slide 17: Software enablement is growing rapidly
SQUARE Software enablement is growing rapidly Software-enabled payments % of industry U.S. payments volume (Top 50 providers) 8% ~2x 7 Growth in industry share of Da software-enabled payments. 2021
Slide 18: Increasing demand for omnichannel commerce
SQUARE Increasing demand for omnichannel commerce Share of services offered by omnichannel retailers (% of survey respondents) KEY 46% @ Pre-COVID-19 40% @ During CoviD-19 35% @ 2020 Holiday Period @ 2021 Holiday Period Buy online, pick up in Buy online, ship Home delivery store or curbside pickup f
Slide 19: Leading SMB commerce businesses
SQUARE Leading SMB commerce businesses $700 $600 $500 $400 $300 $200 $100 $0 24 32 40 48 56 72 Square Company A Company B Company C Company D Company E
Slide 20: Strategic priorities
SQUARE Strategic priorities * Omnichannel *® Software I Global | Grow SMES
Slide 21: Omnichannel Software
SQUARE 2 ® Omnichannel Software In person pe 2 - Afterpay = Order Manager - Loyalty = Virtual Terminal = Invoice: ~ Point of Sale - Appointments ~ Retail ~ Restaurants ~ Kitchen Display System ~ In-Person APIs On the web Over the phone MENUISERE Be QUALITE Online Store Afterpay - Appointmer -Or - On
Slide 22: Seller Case Study
SQUARE Seller Case Study Graze on Main Square Register Square Point of Sale Square Online Gift Cards Invoices Dashboard 22 INVESTOR DAY 2022
Slide 23: Seller testimonial quote
SQUARE “So on the business end of Square, in addition to maintaining our inventory for us, which is super helpful, it's also nice to track our growth, which has been really exciting. As anew business owner, you want to capture changes that are occurring within your business, and you want to see, obv
Slide 24: Growing omnichannel
SQUARE 24 Growing omnichannel Gross profit from omnichannel sellers 6x Gross profit growth from omnichannel sellers since 2015. KEY $118 @ Online-Only Sellers coe @ Omnichannel Sellers $0.9B 2019 2020 2021 2015 2016 2017 % of total Square 30% 36% 47% 49% Gross Profit Annual al Squa hannel payment on
Slide 25: b fos \
SQUARE b fos 2 \ pax. x 7 Wl Sa? 0 Ngo Tre
Slide 26: Bringing our product ecosystem global
SQUARE Bringing our product ecosystem global US. @ New Products Launched in 2021 @ Existing Products in Market
Slide 27: Strong gross profit growth in global market
SQUARE Strong gross . profit growth in 520M global market 2015 2016 2017 2018 2019 2020 2021 International % of total >60% 39 3% a 4% t 8 9% Square Gross Profit International annual growth jote e gross profit does not include hardware gross profit losses. We view hardware as an acquisiti rate since
Slide 28: Global market expansion
Global market oe expa nsion _Fakand sands (Uk) ¢
Slide 29: Falkland Islands
SQUARE 29 Falkland Islands Banking, compliance, and its remote location made it nearly impossible to install traditional payment and POS systems. Ect fa! PS INVESTOR DAY 2022
Slide 30: Falkland Islands
SQUARE Falkland Islands In conjunction with the local government and Mastercard, Square successfully rolled out an integrated system across the islands. INVESTOR DAY 2022
Slide 31: Global market expansion
SQUARE Global market expa a sio Nn _Fakiand stands (UK) ¢ INVESTOR DAY 2022
Slide 32: Global market expansion
SQUARE { Wf 4 d y 3 wre -~ &@ r , United States Canada oe Japan Australia UK 2010 2012 2012 2016 2017 vw 6% Lf ] Falkland Islands (UK) France Spain 2020 2021 2022 Global market . expansion J
Slide 33: Grow Upmarket
SQUARE ® Grow Upmarket Serving larger retailers, restaurants, and service businesses / in you feel your best. Py, Festival Shirt In Stock | Large, SKU M-O004LP. i 00000095849 PS INVESTOR DAY 2022
Slide 34: Upmarket progress
SQUARE 34 Upmarket progress Gross profit from larger sellers $1.3B @ >$500K Annualized GPV 19x 2015 2016 2017 2018 2019 2020 2021 Gross profit growth from >$500K sellers since 2015. @ $125k - $500K Annualized GPV fit excludes hardware and Starbucks data from 2015-2016
Slide 35: Larger sellers use more software and integrated payments
SQUARE 35 Larger sellers use more software and integrated payments Gross profit by product category 100% 75% 50% 25% 0% < $125K Annualized GPV 16 $125K - $500K Annualized GPV 28 >$500K Annualized GPV 37 KEY @ Sidecar Payments @ Software, Integrated Payments, Banking Average # of products per seller
Slide 36: Logout LN Notification
SQUARE 36 Logout LN 1 Notification D Search Cargo Jacket Crew Tee Dark Chambray ‘Customers Saved Carts ‘Chambray ‘sweatshirt Henley Save Cart Barcode Scanner Connected Total spend 3:10PM Avg. visits per month 745%
Slide 37: Retail
SQUARE aT Retail Square Online and Bist cesion Colors Main color Accent Salsa Verde In Stock Ll J M-OOO4LF Vintage Se Habanero Salsa SHOP ALL SyPeme! Large, SKU M-0004LF 2 009584: RE Ghost Pepper Salsa In Stock gs io <i (69, (zs)
Slide 38: Block Jacket $259
SQUARE 38 Block Jacket $259 afterpay> 6 $50 6 $50 6 $50 visiT BOOK SHOP. JOURNAL Block Jacket $259.00 Handcrafted in Paris. Made to stand out. This bold jacket can be dressed up or down to fit any fashion. INVESTOR Di
Slide 39: Retail
SQUARE 39 Retail TikTok integration a@basicbeeboutique 26 22 655 a? — BH tiver Eyes Earrings icheocicy $80.00 ie Tiger Eyes Earrings $55.00 ‘Quantity
Slide 40: Retail
SQUARE 40 Retail Customer directory 12:37 PM Mon Jul Keypad Library Favorites Lighting Furniture Floor Vase Tableware... Bath Soaps Baskets a cS ay Candles Teapot Dessert Pla... Sink Set aa a ae ae GIFT CARD Toaster Mixing Bow! ~—- Measuring Succulent $100 Pillows Glass Vases Discounts Rewards Gift
Slide 41: Retail
a“ SQUARE Retail Targeted campaigns New IN New summer outfits are here! Text Message Automations BE Welcome new customers send a birthday gift Happy Birthday! To celebrate, we're giving you $25 off your next purchase! https://gosq.me/u/...
Slide 42: Retail
SQUARE 42 Retail Banking solutions: Business loans Select your loan amount $8,000 ————-e One loan fee $1160 Total repayment $9,160 Loan details 44% Complete © Total paid Minimum remaining Balance remaining $4,030.40 $120.52 $5,129.60
Slide 43: Restaurants
SQUARE 43 Strategic Ver Restaurants Dinner Appetizers Flatbread Shrimp Cocktail Log Out LN Caesar Caprese House Red House White Account Entrées Course 1 Caprese Salad Balsamic Chocolate Cake Caesar Salad Side Dres Grilled Salmon Cheesecake Course 2 Grilled Salmon Sirloin Steak Vodka Bourbon jew Tabl
Slide 44: Restaurants
SQUARE 44 nts jratior Restaur hird-party Order Details > Pickup Details 1 Poke Bowl $16.43 Mark as Picked Up KALE SALAD INVESTOR
Slide 45: Restaurants
SQUARE Restaurants Connecting ecosystems with Cash App Pay Scan to pay Cali Bowl $12 $) Cash App Pay
Slide 46: Restaurants
SQUARE 46 Restaurants Staffing solutions ares Schedule Main Location ¥ Jan 20 - Jan 26 Jobs Availablity Mon, 01/20 Tue, 01/21 Wed, 01/22 Thu, 01723 Fri, 1724 Sat, 0125 Sun, 01/26 shifts Workday Labor cost Manager ¥ Karen Chin Karen Chin Karen Chin Karen Chin Karen Chin om Q 930am-3..| |9:30am-3..| |
Slide 47: Restaurants
SQUARE 47 Restaurants Staffing solutions @ Todd accepted your trade request. It’s been sent to Housemade Bistro for approval. @ Ethan wants to trade shifts with you. JL 1/1, 9:00 AM — 5:00 PM (8h) James L - Server Trade shift
Slide 48: Restaurants
SQUARE 48 Restaurants Staffing solutions Gross pay ® $1,234.56 Hours this week © 12h 34m Earnings available now ® $200.00 Run Payroll Hours and Eamings > Hours and Earnings Pay Period er 16-Apr-20 Reuicsoresicd © Use Employee's Payment Method Pay Al Employees by Check in Hil sake Anderson ketyn Spin
Slide 49: Restaurants
SQUARE 49 Restaurants Payroll with Cash App Good afternoon, Ethan Housemade Bistro Clock In Get your next paycheck early $200.00 Free transfer to Cash App Transfer instantly Hours this week 32 hours New Paycheck View timecards $200.00 ed Transfer Completed Confirm transfer $200.00 cHoo Your $CashTag
Slide 50: Seller Case Study
Seller Case Study The Kebab Shop Square Register Square Stand Square Terminal Square POS Square for Restaurants Square Online Team Manageme! Kitchen Display System Loyalty Marketing Invoices Flex Loan On-Demand Delivery Gift Cards INVESTOR DAY 2022
Slide 51: Seller testimonial quote
SQUARE =~ “Well, we do rely on the reports that we y have in the dashboard. We're lucky in the sense of, we have data that we can pull from different stores that are in different wa markets. We're trying to decide how we're Sa going to grow, where we're going to grow a) M the sales performance of th
Slide 52: Professional & Field Services
SQUARE ‘Strategic Vertical Professional & Field Services Invoices & Estimates Overview Recurring Estimates Reports Settings Location 1» Welcome, Keith and Williams Q Feed Paid ait ’ $1,024.00 4 28% 1 MoM Last7 days © Estimate viewed + $243.00 Outstanding © _ Invoice viewed + 567.00 $728.00 © Send an
Slide 53: Professional & Field Services
SQUARE Professional & Field Services Integrated software Invoice Sent inne vn — yea, OE ler Ly a va Invoice to Lauren Nobel $800.00 @ Paid on July 30 @ = Invoice due
Slide 54: Professional & Field Services
SQUARE 54 Professional & Field Services Integrated software Lauren Noble Credit card authorzation Paulina Rios Sale of goods agreement Justin Keller Client service agreement Draft Signed Expired Three Birch Trees Client service agreement Signed on March 12, 2022 Business: Three Birch Trees threebirc
Slide 55: Professional & Field Services
SQUARE 55 Professional & Field Services Banking solutions: checking and savings Square Checking fo) Square Savings fo} E 10th Steet v Eaming 050% APY $24,678.43 $1,850.00 Available Transfer out Transfer out Recent activity General savings $500.00 Taqueria Sinaloa - $16.48, Sales tax $350.00 — > | I
Slide 56: Health & Beauty
SQUARE Health & Beauty
Slide 57: Health & Beauty
SQUARE 57 Health & Beauty Hi Lauren, your appointment at Iris & Onyx on Tue, Nov 5 at 10:30 AM is coming up. Make changes to your appointment sqap.pt/7PBNI2mi Iris & Onyx (Change location Location & Hours 1 9 S, pen today unl 00pm See more
Slide 58: Health & Beauty
SQUARE 58 Health & Beauty — Messaging solutions ceases Kaitlyn Spindel # Square Assistant Kaitlyn Spindel Hi Kaitlyn, your appointment at Irs & Onyx on 9/29 at 2:00 PM PST is coming up. Make changes at sa.re/37Hdbs2/. Reply to chat with our automated assistant Where do | park? Wendy Xu The person at
Slide 59: Health & Beauty
SQUARE Health & Beauty Loyalty solutions ke 1 free haircut ke 10% off entire sale Sales @ Loyalty 37% Non-Loyalty 63% View sales report Average customer spend View sales report LOYALTY SUMMARY 10 points Non-loyalty $100
Slide 60: Health & Beauty
SQUARE Health & Beauty Loyalty solutions Activity 12:37 Welcome to Iris & Onyx reward ° program. You can track your Gots5 is Onyx Karen SoFresh Sushi Pete status in Cash App. Download here: o Iris & Onyx http://deeplink.com/URL/to/store “ Iris & Onyx $40.78 $30.24 Karen Chin 2 Point Earned So Fresh
Slide 61: Seller Case Study
Seller Case Study My Salon Suite Square Stand Team Management Square Register Payroll Square Terminal Instant Deposit Square Point of Sale Gift Cards Square Online eCommerce API Appointments Loyalty Invoices Flex Loan WU
Slide 62: Seller testimonial quote
SQUARE “We put so much energy into providing for our client. And we are a group of individuals who really do believe in the attitude of servitude. We are there to please. We're there to make you feel amazing. We're there to create life-changing hair or nails or to give you a massage of a lifetime. N
Slide 63: The Square growth engine
SQUARE The Square growth engine
Slide 64: The Square growth engine
growth engine The Square
Slide 65: The Square growth engine
SQUARE The Square growth engine
Slide 66: The Square growth engine
SQUARE The Square growth engine INVESTOR DAY 2022
Slide 67: We build remarkable software & hardware
SQUARE 67 We build remarkable software & hardware i es Reader for Magstripe Contactless & Chip Reader Terminal Stand Register tok tke tok ke tk ke kk ke Parwreran 47/5 4715 4715 46/5 46/5 27556 ratings 12,684 ratings 2,098 ratings 413 ratings 490 ratings ° one ~ New Lite Carpet “5 $5,451.20 ¢ " a i)
Slide 68: Evolving our go-to-market investment
SQUARE 68 Evolving our go-to-market ‘som investment @ International @ US. Performance Marketing @ US. Awareness $400M Marketing @ US. Sales @ US. Hardware $200M $OM = 2017 2018 2019 2020 2021
Slide 69: Growing brand awareness
SQUARE 69 Growing Brand Awareness @ 2021 Global Product Awareness @ 2021 awareness @ 2020 @ 2020 of Square re me 40% : : 0% US. CA AU UK JP IE FR Payments POS Online = Payroll ~— Capital 40% 20% e question, “Which of the following are yo
Slide 70: Opportunity to grow investment in sales
Opportunity to grow investment in sales
Slide 71: A track record of strong returns
SQUARE A track record of strong returns Return on Investment Cohort Age (Quarters)
Slide 72: Retention improves with larger sellers and greater product adoption
SQUARE Retention improves with larger sellers and greater product adoption 2021 seller churn by seller size and product adoption < $125K $125K - $500K Annualized GPV Annualized GPV Annualized GPV KEY @ 1 Product @ 2 Products @ 3 Products @ 4+ Products
Slide 73: Growing adoption through cross-sell
SQUARE Growing adoption through cross-sell Average # of monetized products for sellers with > $125K of annualized GPV 20 Cohort Age (Quarters) across quarterly cohorts as they age over ti \d. Terminal and SPOS a 30 40
Slide 74: Investor Day 2022
SQUARE 74 ge INVESTOR DAY 2022
Slide 75: Square
SQUARE (=) Square
Slide 76: Appendix
SQUARE Appendix
Slide 77: Square Gross Profit - Reconciliation to GAAP
SQUARE Square Gross Profit - Reconciliation to GAAP ($in thousands, unaudited) 2015 Square gross profit excluding Hardware and Starbucks 382,935 2016 579,135 2017 797,611 2018 1,098,107 2019 1,442,307 2020 1,560,519 2021 2,392,177