Block Inc (SQ) 2024 Q3 法說會逐字稿

Good day, ladies and gentlemen, and welcome to the Block third quarter 2024 earnings conference call. Today's call will be 45 minutes. I would now like to turn the call over to your host, Nikhil Dixit, Head of Investor Relations. Please go ahead.

女士們、先生們，美好的一天，歡迎參加 Block 2024 年第三季財報電話會議。今天的通話時間為 45 分鐘。現在我想將電話轉給主持人投資者關係主管 Nikhil Dixit。請繼續。

Hi, everyone. Thanks for joining our third quarter 2024 earnings call. We have Jack and Amrita with us today. We will begin this call with some short remarks before opening the call directly to your questions.

大家好。感謝您參加我們的 2024 年第三季財報電話會議。今天我們有傑克和阿姆麗塔。我們將以一些簡短的評論開始本次電話會議，然後直接回答您的問題。

During Q&A, we will take questions from conference call participants. We would also like to remind everyone that we will be making forward-looking statements on this call. All statements other than statements of historical fact could be deemed to be forward-looking. These forward-looking statements include discussions of our outlook, strategy, and guidance as well as our long-term targets and goals.

在問答過程中，我們將回答電話會議參與者的問題。我們也想提醒大家，我們將在這次電話會議上做出前瞻性陳述。除歷史事實陳述外的所有陳述均可被視為前瞻性陳述。這些前瞻性陳述包括對我們的前景、策略和指導以及我們的長期目標和目標的討論。

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

這些陳述存在風險和不確定性。實際結果可能與我們前瞻性陳述中預期的結果有重大差異。報告的結果不應被視為未來績效的指標。請查看我們向 SEC 提交的文件，討論可能導致我們的結果出現差異的因素。

Also note that the forward-looking statements on this call are based on information available to us as of today's date. We disclaim any obligation to update any forward-looking statements, except as required by law. Further, a discussion during this call of our lending and banking products, including those offered through our bank partners. Within these remarks, we will also discuss metrics related to our investment framework, including Rule of 40.

另請注意，本次電話會議的前瞻性陳述是基於截至今天為止我們所掌握的資訊。除法律要求外，我們不承擔更新任何前瞻性聲明的義務。此外，本次電話會議也討論了我們的貸款和銀行產品，包括透過我們的銀行合作夥伴提供的產品。在這些評論中，我們還將討論與我們的投資框架相關的指標，包括 40 條規則。

With Rule of 40, we are evaluating the sum of our gross profit growth and adjusted operating income margin. Also, we will discuss certain non-GAAP financial measures during this call. Reconciliations to the most directly comparable GAAP financial measures are provided in the shareholder letter and our historical financial information spreadsheet on our Investor Relations website. These non-GAAP measures are not intended to be a substitute for our GAAP results.

根據 40 規則，我們正在評估毛利成長和調整後營業利潤率的總和。此外，我們還將在本次電話會議中討論某些非公認會計準則財務指標。股東信函和投資者關係網站上的歷史財務資訊電子表格中提供了與最直接可比較的 GAAP 財務指標的調整表。這些非公認會計準則衡量標準無意取代我們的公認會計準則結果。

Finally, this call in its entirety is being audio webcast on our Investor Relations website. An audio replay of this call and the transcript for Jack and Amrita's opening remarks will be available on our website shortly. With that, I would like to turn it over to Jack.

最後，本次電話會議的全部內容將在我們的投資者關係網站上進行音訊網路廣播。本次電話會議的音訊重播以及傑克和阿姆麗塔的開場白文字記錄很快就會在我們的網站上提供。有了這個，我想把它交給傑克。

Thank you all for joining us. My shareholder letter this quarter explains our ecosystem of lending products, our methodology, how we address risks, and our competitive advantage. We are focused on increasing access with Square Loans, Afterpay, Buy Now, Pay Later, and Cash App Borrow through better technology, transparency, and simplicity. If you haven't yet, please read the letter for more details.

感謝大家加入我們。我本季的股東信解釋了我們的貸款產品生態系統、我們的方法、我們如何應對風險以及我們的競爭優勢。我們致力於透過更好的技術、透明度和簡單性來增加 Square Loans、Afterpay、立即購買、稍後付款和 Cash App Borrow 的使用機會。如果您還沒有，請閱讀這封信以了解更多詳細資訊。

And with that, I'll turn it over to Amrita for some highlights from the quarter.

接下來，我將把它交給 Amrita，以了解本季的一些亮點。

Thanks, Jack. We delivered strong results across the company during the third quarter. Gross profit was $2.25 billion, up 19% year-over-year, with 16% growth for Square and 21% growth for Cash App. We delivered a significant increase in profitability on a year-over-year basis with meaningful margin improvement and our highest quarterly profitability ever for both adjusted operating income and adjusted EBITDA on a dollar and margin basis.

謝謝，傑克。第三季我們在整個公司取得了強勁的業績。毛利為 22.5 億美元，年增 19%，其中 Square 成長 16%，Cash App 成長 21%。我們的獲利能力較去年同期顯著提高，利潤率顯著提高，調整後營業收入和調整後 EBITDA（以美元和利潤率計算）均達到有史以來最高的季度盈利能力。

For the 12 months ending in September, adjusted free cash flow was $1.5 billion compared to $945 million in the prior 12 months. For full year 2024, we have raised our guide on adjusted operating income and adjusted EBITDA, and we have maintained the gross profit guidance we outlined in August. For the fourth quarter of 2024, we expect gross profit of $2.31 billion, or 14% growth year over year. Let's unpack a few real-time dynamics.

截至 9 月的 12 個月，調整後自由現金流為 15 億美元，而前 12 個月為 9.45 億美元。對於 2024 年全年，我們提高了調整後營業收入和調整後 EBITDA 的指導，並維持了 8 月份概述的毛利指導。 2024年第四季，我們預期毛利為23.1億美元，年增14%。讓我們來了解一些即時動態。

For Square, we've seen an improvement in underlying GPV trends in recent months. In October, we saw higher year-over-year growth for both US and global GPV compared to the third quarter, with global GPV showing double-digit growth. For Cash App, we've seen strong momentum on gross profit and improved attach rates on paycheck deposits.

對於 Square，我們看到近幾個月潛在 GPV 趨勢有所改善。與第三季相比，10 月美國和全球 GPV 年比成長更高，其中全球 GPV 呈現兩位數成長。對於現金應用程序，我們看到毛利的強勁勢頭和工資存款附加率的提高。

Looking at our fourth-quarter guidance. While underlying trends in the business are stable to improving and we expect Square GPV growth to improve modestly compared to the third quarter, there are a few discrete items that impact gross profit growth by about three points. In Cash App, we shifted out the expansion of Cash App Borrow into new customer segments. And in Square, we had a delay in a one-time transaction cost benefit from a partner.

看看我們的第四季指引。雖然業務的基本趨勢穩定改善，我們預計 Square GPV 成長與第三季相比將略有改善，但有一些離散項目會影響毛利成長約三個百分點。在 Cash App 中，我們將 Cash App Borrow 的擴展轉移到了新的客戶群。在 Square，我們延遲了從合作夥伴那裡獲得一次性交易成本。

We now expect both of these benefits to land in 2025. Our adjusted operating income guide in the fourth quarter reflects plans for a step-up in sales and marketing for both Square and Cash App as we invest behind attractive unit economics in each business to drive growth into 2025. Our updated full year 2024 guidance implies Rule of 36, a significant improvement of 6 points compared to 2023 and 7 points compared to our initial 2024 guide, which is composed of 3 points from growth outperformance and 4 points from margin outperformance. Finally, while we are still in the planning process for next year, we wanted to provide a preliminary view into our expectations for 2025.

我們現在預計這兩項收益將在2025 年實現。的單位經濟效益，以推動我們更新後的2024 年全年指引遵循36 條規則，與2023 年相比顯著提高了6 個點，與我們最初的2024 年指南相比顯著提高了7 個點，其中3 個點來自於成長表現優異，4 個點來自於利潤率表現優異。最後，雖然我們仍處於明年的規劃過程中，但我們希望提供對 2025 年預期的初步看法。

As we shared previously, we plan to reach Rule of 40 in 2026 with a composition of at least mid-teens gross profit growth and a mid-20% adjusted operating income margin. We expect strong gross profit growth in 2025 of at least 15%, consistent with that target, driven by broad momentum across Block.

正如我們之前分享的，我們計劃在 2026 年達到 40 法則，毛利成長至少達到 10% 左右，調整後營業利潤率達到 20% 左右。我們預計，在 Block 廣泛勢頭的推動下，2025 年毛利將強勁成長至少 15%，與該目標一致。

We have a number of initiatives recently launched or launching soon, and we expect them to compound through the year, driving stronger growth in the second half of the year compared to the first half. We expect GPV growth to improve next year and to end 2025 at a meaningfully higher growth rate than where we exit 2024.

我們最近推出或即將推出多項舉措，我們預計它們將在今年實現複合成長，推動下半年比上半年更強勁的成長。我們預計明年 GPV 成長將有所改善，到 2025 年底，成長率將顯著高於 2024 年的成長率。

On the profitability side, we're committed to expanding margins on an adjusted operating income basis next year, although we expect the pace of expansion to be less than this year as we invest in growth opportunities with attractive returns, particularly around go-to-market.

在獲利能力方面，我們致力於明年在調整後的營業收入基礎上擴大利潤率，儘管我們預計擴張速度將低於今年，因為我們投資於具有有吸引力回報的成長機會，特別是圍繞市場。

Our guide assumes a stable macro environment and is based on the momentum we're seeing in our business as we execute on our strategy and scale product innovations for our customers in 2025. We've rolled out Square's order platform, and we're leveraging this to bring new features to sellers like preauthorization. We're currently testing a new and enhanced Square for Restaurants point-of-sale experience with a growing number of sellers, and we'll make this available to all sellers in 2025.

我們的指南假設宏觀環境穩定，並基於我們在 2025 年執行策略並為客戶擴展產品創新時所看到的業務勢頭。等新功能。目前，我們正在與越來越多的賣家一起測試新的增強版 Square forrestaurant 銷售點體驗，並將於 2025 年向所有賣家提供此體驗。

We're also rolling out our single app experience to new sellers now and expect to launch that more broadly in 2025. We've seen tangible momentum in partnerships and early signs of success in sales. We grew our Square brand and performance marketing investments more than 20% year over year in the third quarter and began ramping sales hiring, including field sales. We will be scaling these and other go-to-market efforts more meaningfully into next year.

我們現在也向新賣家推出單一應用程式體驗，並預計在 2025 年更廣泛地推出。第三季度，我們的 Square 品牌和績效行銷投資年增了 20% 以上，並開始加強銷售招募力度，包括現場銷售。我們將在明年更有意義地擴大這些和其他上市工作。

For Cash App, we're about to transform 24 million Cash App cards into a better alternative to credit cards when we launch Afterpay on Cash App Card. We're leaning into go-to-market spend to drive paycheck deposit actives in 2025 across performance marketing, brand awareness, and incentives. We've driven performance in 2024 by focusing our strategies and by operating with expense discipline across personnel, structural costs, and corporate overhead costs. We have seen constraints breed creativity and drive continuous improvement in how we serve customers.

對於 Cash App，當我們在 Cash App 卡上推出 Afterpay 時，我們將把 2400 萬張 Cash App 卡轉變為信用卡更好的替代品。我們傾向於投入市場支出，以推動 2025 年在績效行銷、品牌知名度和激勵方面的薪資存款活躍度。我們透過集中策略以及在人員、結構成本和公司管理費用方面嚴格執行費用運營，推動了 2024 年的業績成長。我們看到，限制孕育創造力，並推動我們服務客戶的方式不斷改進。

We intend to build upon our execution in 2025 and beyond. With that, I'll now turn it back to the operator to start the Q&A portion of the call.

我們打算在 2025 年及以後繼續加強我們的執行力。這樣，我現在將其轉回給接線員以開始通話的問答部分。

(Operator Instructions)

（操作員說明）

Tien-Tsin Huang, JPMorgan.

黃天進，摩根大通。

Hi. Thanks. Yeah. I want to ask on the Square side, if you don't mind really encouraged here to hear that you're expecting growth to accelerate on the GPV front in the US next year. Can you just give us a little bit more on visibility there and the building blocks that are needed to get to that?

你好。謝謝。是的。我想問一下 Square 方面，如果你不介意在這裡聽到你預計明年美國 GPV 方面將加速成長，你會感到非常鼓舞嗎？您能給我們更多關於那裡的可見性以及實現這一目標所需的構建模組嗎？

Tien-Tsin, thanks so much for the question. I'll start on what we're seeing from a GPV perspective and what leads us to the confidence to say that we expect to see modestly improved growth in the fourth quarter relative to the third quarter and further acceleration in growth from current levels into 2025. So, what we saw, first of all, just to start, in the third quarter was growth at 7.5%, which is modest -- a moderation of the 7.8% growth we saw in the second quarter with the US about 4.9%.

田進，非常感謝您的提問。我將從GPV 的角度開始介紹我們所看到的情況，以及是什麼讓我們有信心地說，我們預計第四季度的增長相對於第三季度將略有改善，並且從當前水平到2025 年增長將進一步加速因此，首先，我們看到第三季度的增長率為7.5%，這是溫和的——比我們在第二季度看到的7.8% 的增長率有所放緩，而美國的增長率約為4.9%。

And obviously, there, we saw some modest impact from weather and hurricanes at the end of September, while international growth was strong in the third quarter at 20%. Now, since then, what we've seen has been an improvement. When we look at Square GPV, adjusting for differences in day of the week compared to prior period, we've seen an improvement in year-over-year Square US GPV growth each month since July.

顯然，我們在 9 月底看到了天氣和颶風的一些溫和影響，而第三季的國際成長強勁，達到 20%。現在，從那時起，我們看到了進步。當我們觀察 Square GPV 時，根據一周中的某一天與上一時期相比的差異進行調整，我們發現自 7 月以來，Square 美國每個月的 GPV 同比增長都有所改善。

And through October, in the US, we've seen year-over-year growth improved by a couple percentage points compared to that 4.9% growth in Q3. And we've already seen strong growth in international markets also accelerate into October. We believe this improvement in the US has been driven by same-store growth across our verticals.

在整個 10 月份，美國的年成長率比第三季 4.9% 的成長率提高了幾個百分點。我們已經看到國際市場的強勁成長也加速到十月。我們相信美國的這種改善是由我們垂直行業的同店成長所推動的。

We're also seeing encouraging trends on customer acquisitions, though we know that it's early and we have a lot of room for improvement, which we expect to see as our product innovations and go-to-market initiatives ramp into 2025.

我們也看到了令人鼓舞的客戶獲取趨勢，儘管我們知道現在還為時過早，而且我們還有很大的改進空間，我們預計隨著我們的產品創新和上市計劃在2025 年逐步推進，我們將看到這一點。

All right. Great. Thank you.

好的。偉大的。謝謝。

I'll just add one thing, Tien-Tsin. As you know, like we completed our orders migration. And this was the biggest unlock for us to really go after all the table-stakes features that have been holding us back with respect to our biggest competitors. So, excited about that.

我只想補充一件事，Tien-Tsin。如您所知，就像我們完成了訂單遷移一樣。這是我們真正追求所有阻礙我們與最大競爭對手相比的賭注功能的最大解鎖。所以，對此感到興奮。

That came in on time, and that means we can move much faster to build out these features and then build out new features and ideally new products. But the area that I would point to for 2025 that I believe is going to be the most interesting is around Cash App Local. We're one of the few companies that have both sides of the counter, and we have this now unique ability to drive store traffic and drive orders, and drive sales to our merchants in a compelling way on the Cash App platform itself. And the experience we've been testing is pretty great because it allows for people to walk into a store and discover this but also, over time, discover it from Cash App itself, which really amounts to sort of a network for the neighborhood, where we can actually drive new traffic to these merchants.

這按時完成，這意味著我們可以更快地建立這些功能，然後建立新功能和理想的新產品。但我認為 2025 年最有趣的領域是 Cash App Local。我們是少數幾家擁有兩側櫃檯的公司之一，我們現在擁有獨特的能力來推動商店客流量和訂單，並在 Cash App 平臺本身上以引人注目的方式推動我們商家的銷售。我們一直在測試的體驗非常好，因為它允許人們走進商店並發現這一點，而且隨著時間的推移，也可以從 Cash App 本身發現它，這實際上相當於一種社區網絡，其中我們實際上可以為這些商家帶來新的流量。

We can allow merchants to capitalize and build loyalty for the customers they already have through Cash App and do things that others haven't been able to do, which is things like real-time cashback, which is a tool for a merchant that they've just not had access to in the past. And we think it will be a great network effect feature that provides a new foundation both for Cash App and also for Square.

我們可以讓商家透過 Cash App 來利用他們已經擁有的客戶並建立忠誠度，並做其他人無法做到的事情，例如即時現金回饋，這是商家可以使用的工具。我們認為這將是一個偉大的網路效應功能，為 Cash App 和 Square 提供新的基礎。

But on the Square side, like everything that we're looking at after this migration is making sure that we get to the table stakes and we unblock ourselves from competitors and then get back to building new features and really focus on the in-store experience and how people think about omnichannel and spanning multiple verticals at once, which is one of the reasons they choose Square in the first place.

但在 Square 方面，我們在這次遷移後所關注的一切都是為了確保我們能夠參與其中，並擺脫競爭對手的阻礙，然後重新開始構建新功能並真正專注於店內體驗以及人們如何看待全渠道和同時跨越多個垂直領域，這也是他們首先選擇Square 的原因之一。

Tim Chiodo, UBS.

提姆‧奇奧多，瑞銀集團。

Great. Thank you for taking the question. Somewhat aligned with, Jack, what you were just talking about, finishing the orders migration. And then Amrita, you mentioned this in your prepared remarks, but we noticed on the job posting site that you did begin hiring some of the local in-market sales folks.

偉大的。感謝您提出問題。有點符合，傑克，你剛才所說的，完成訂單遷移。然後阿姆麗塔，您在準備好的演講中提到了這一點，但我們在招聘網站上註意到您確實開始僱用一些當地的市場銷售人員。

So, we noticed specifically that the job description stated that these people will be selling 80% of the time face to face, so very much local in-market salespeople. And while the job postings number didn't seem overly large, we gather this is more sort of the initial team.

因此，我們特別注意到職位描述中指出，這些人 80% 的時間將進行面對面銷售，因此許多是本地市場銷售人員。雖然職缺的數量似乎並不太大，但我們認為這更像是最初的團隊。

So, I wanted to see if you could talk a little bit about, one, that initial team; and then two, the plans for expansion. And then, of course, just more broadly across the hybrid approach, there's lots of distribution partnerships announced and in the shareholder letter, you even mentioned an ISO outside the US.

所以，我想看看你是否可以談談，第一，最初的團隊；第二，擴張計畫。當然，更廣泛地說，在混合方法中，宣布了許多分銷合作夥伴關係，在股東信中，您甚至提到了美國以外的 ISO。

So, I would appreciate any of that context. Thank you.

所以，我會很感激任何這樣的背景。謝謝。

Hey Tim, thanks for the question. I can get us started here on our broader sort of sales strategy for Square, which we're pretty encouraged about. Really obviously, two key pieces of this. One is how we drive acquisition of new sellers and volumes from new sellers.

嘿提姆，謝謝你的提問。我可以從這裡開始為 Square 制定更廣泛的銷售策略，我們對此感到非常鼓舞。很明顯，其中有兩個關鍵部分。一是我們如何推動新賣家的收購和新賣家的銷售。

And then the second is how we drive lifetime value and retention from our existing sellers, and we see opportunities on both sides. With respect to new sellers, obviously, ramping our field sales hiring is a key piece of that, as you note, also driving productivity with our existing sales team is a big opportunity for us, one that we've made some traction on but we see that we have even more opportunity on. With respect to field sales hiring, we do have our first group of dedicated field sales reps in-market now, and we plan to continue hiring here in the fourth quarter and into next year. We think that by putting resources, by putting people on the ground in local markets that that helps not only support our brand perception but also some of this partnership and broader marketing motion that I'll come back to in a moment.

第二個問題是我們如何提高現有賣家的終身價值和保留率，我們看到了雙方的機會。對於新賣家來說，顯然，增加我們的現場銷售招聘是其中的一個關鍵部分，正如您所指出的，提高我們現有銷售團隊的生產力對我們來說也是一個巨大的機會，我們已經在這一機會上取得了一些進展，但我們看到我們有更多的機會。關於現場銷售招聘，我們現在確實在市場上擁有第一批專門的現場銷售代表，我們計劃在第四季度和明年繼續在這裡招聘。我們認為，透過投入資源，透過將人員安置在當地市場，這不僅有助於支持我們的品牌認知度，而且有助於我稍後會談到的一些合作夥伴關係和更廣泛的行銷活動。

On the productivity point for our existing sales team, we've seen about a 10% to 20% improvement in per-rep productivity year to date, and we believe we can increase that even further. We think that this team is generating hundreds of millions of dollars in lifetime value per annual cohort with healthy payback periods and with even more opportunity as we lean into marketing and partnerships to drive more efficient lead generation, as we see these product investments that we're making enable us to serve more upmarket sellers and drive larger deal sizes. And then from a sales enablement standpoint, with greater tooling and incentives, things like contracts that have really driven higher retention for us with numerous sellers. From an existing seller standpoint, this is a really key piece as well because our account management team has done a really good job in driving enhanced lifetime values.

在我們現有銷售團隊的生產力方面，迄今為止，我們發現每位代表的生產力提高了約 10% 到 20%，我們相信我們可以進一步提高這一點。我們認為，這個團隊每年為每個隊列創造數億美元的終身價值，並具有健康的投資回收期，隨著我們傾向於行銷和合作夥伴關係以推動更有效的潛在客戶開發，我們將獲得更多機會，因為我們看到了我們的這些產品投資。然後從銷售支援的角度來看，透過更好的工具和激勵措施，諸如合約之類的東西確實提高了我們與眾多賣家的保留率。從現有賣家的角度來看，這也是一個非常關鍵的部分，因為我們的客戶管理團隊在推動提高終身價值方面做得非常好。

So, we're investing here as well to drive retention and cross-sell across these cohorts. We've seen that cohorts of sellers that come through our account management team have a 40% increase in Net Promoter Score. So, that gives us the confidence to invest more. And that's on the back of, as you know, a much broader strategy that involves marketing and partnerships.

因此，我們也在這方面進行投資，以提高這些群體的保留率和交叉銷售。我們發現，透過我們的客戶管理團隊進行銷售的賣家群的淨推薦值提高了 40%。因此，這讓我們有信心進行更多投資。如您所知，這是一個涉及行銷和合作夥伴關係的更廣泛策略的支援。

We just obviously announced in our shareholder letter today that we've got partnerships with T-Mobile in the US as well as SalonCentric. And we've got a much more diversified strategy in how we go to market across these partners when you look at our international markets as well, where we see a tremendous opportunity to innovate and to test different ways of going to market.

我們今天在股東信中明確宣布，我們與美國的 T-Mobile 以及 SalonCentric 建立了合作夥伴關係。當你看到我們的國際市場時，我們在如何進入這些合作夥伴的市場方面製定了更加多元化的策略，我們在國際市場上看到了巨大的創新機會和測試不同的進入市場方式的機會。

Thank you, Amrita.

謝謝你，阿姆麗塔。

Darrin Peller, Wolfe Research.

達林佩勒，沃爾夫研究中心。

Thanks, guys. Look, just given the backdrop of all the regulation going on around fintech banks, in particular, in the industry, maybe you could just touch on how it may or may not be impacting you guys, what you're doing around compliance and addressing capacity around these -- the banking infrastructure. And then I guess it's really good to see the outlook for '25 at that 15% gross profit level. Maybe it seems like this, whatever it is, friction-wise, isn't impacting your ability to grow.

謝謝，夥計們。聽著，考慮到金融科技銀行的所有監管背景，特別是在該行業，也許你可以談談它可能會或可能不會影響你們，你們在合規性和解決能力方面正在做什麼圍繞這些——銀行基礎設施。然後我想看到 25 年 15% 毛利水準的前景真的很好。也許看起來，無論它是什麼，從摩擦角度來看，都不會影響你的成長能力。

So, help us understand if that -- if there is any implications and maybe even on a subsegment level, do you see Cash App sustaining strong growth into '25, too? Thanks, guys.

那麼，請幫助我們了解是否有任何影響，甚至可能在子細分層面上，您是否認為 Cash App 也能在 25 世紀保持強勁成長？謝謝，夥計們。

I'll just start by saying, I mean, obviously, there was just an election, and we have no idea what's going to happen with the broader regulatory. So, we're focused on what we can control and making sure that we continue to build stronger systems as the horizon evolves and as more and more people come onto the financial network. We're thinking about this by applying better technology. A big reason we functionalize the company and really focus on engineering is we see opportunity to really leverage technology a lot more in our approach and make sure that we're way ahead of the regulatory asks and everything happening with compliance and risk.

我首先要說的是，我的意思是，顯然，剛剛舉行了一次選舉，我們不知道更廣泛的監管會發生什麼。因此，我們專注於我們可以控制的事情，並確保隨著視野的發展以及越來越多的人進入金融網絡，我們繼續建立更強大的系統。我們正在透過應用更好的技術來思考這個問題。我們對公司進行職能化並真正專注於工程的一個重要原因是，我們看到了在我們的方法中真正更多地利用技術的機會，並確保我們遠遠領先於監管要求以及合規性和風險方面發生的一切。

This is something that we've made a strong discipline from day one of the company. It's the only reason we exist as a company is because of this focus. And I think that will only increase and then we just have to see what the variables are as the year goes on and how we react to it. But I think the most important thing is to really focus on the control, what we control, and make sure that we're doing all the right things by building better technology and leading with technology instead of just purely a human-based approach.

這是我們從公司成立第一天起就制定的嚴格紀律。這是我們作為一家公司存在的唯一原因就是因為這種關注。我認為這種情況只會增加，然後我們只需要看看隨著時間的推移，變數是什麼以及我們如何應對。但我認為最重要的是真正專注於控制，我們控制的內容，並確保我們透過建立更好的技術並以技術領先而不僅僅是純粹以人為本的方法來做所有正確的事情。

And I'll add to that, Darrin, too, to just say with that backdrop of an evolving regulatory environment, we feel well positioned. We've got significant scale. We've got strength and diversity in our partnerships. And we have the ability, as Jack noted, to truly innovate and invest in our compliance programs and broader technology, machine learning programs that support all of these efforts.

達林，我還要補充一點，在監管環境不斷變化的背景下，我們感覺處於有利地位。我們已經有了很大的規模。我們的合作夥伴關係實力雄厚且多元化。正如傑克所指出的那樣，我們有能力真正創新並投資於我們的合規計劃以及支持所有這些努力的更廣泛的技術和機器學習計劃。

We also, longer term, if you think about the Banking as a Service model, have great optionality with our internal bank with Square Financial Services. We have strong partners across the full stack of our payment products and banking products. And one of the things, as Jack noted, that we look to control is how we build redundancy across our business. So, this year, we've onboarded a number of new partners as we're building resilience and redundancy across key parts of our platform.

從長遠來看，如果您考慮銀行即服務模式，我們的內部銀行與 Square Financial Services 也有很大的選擇。我們在整個支付產品和銀行產品領域擁有強大的合作夥伴。正如傑克所指出的，我們希望控制的事情之一是如何在整個業務中建立冗餘。因此，今年，我們在平台關鍵部分建立彈性和冗餘的過程中引入了許多新合作夥伴。

So, I think that's a key piece of how we focus on an evolving regulatory environment. I want to come back to your other question about 2025 and our preliminary guidance there. So, first, what I'd say, obviously, we are committed to achieving Rule of 40 in 2026 and sustaining it beyond that. And as I noted, we expect to see that as a mix of at least mid-teens gross profit growth, mid-20% adjusted OI margin.

因此，我認為這是我們關注不斷變化的監管環境的關鍵部分。我想回到您關於 2025 年的其他問題以及我們的初步指導。因此，首先，我想說的是，顯然，我們致力於在 2026 年實現 40 條規則，並在此基礎上維持下去。正如我所指出的，我們預計毛利成長至少在 10% 左右，調整後的 OI 利潤率將達到 20% 左右。

So, our preliminary guidance for 2025 of at least 15% gross profit growth is consistent with that longer-term gross profit expectation. We're also committed to expanding our margins next year. And a lot of this comes down to the efforts that we're making across, you've heard so far on the call, across go-to-market and product velocity from both a Square and Cash App perspective and the drumbeat of builds for that throughout the year. And as a result of that, we'd expect to see each of those innovations and improvements compound and benefit growth as we progress through 2025 with more of the improvement coming in the second half of 2025.

因此，我們對 2025 年毛利成長至少 15% 的初步指引與長期毛利預期一致。我們也致力於明年擴大利潤。這在很大程度上要歸功於我們正在做出的努力，到目前為止，您已經在電話會議上聽到了，從Square 和Cash App 的角度來看，在進入市場和產品速度方面以及構建的鼓點方面全年。因此，我們預計隨著 2025 年的進展，這些創新和改進中的每一項都會復合並惠及成長，更多改進將在 2025 年下半年實現。

Great. Thanks, guys.

偉大的。謝謝，夥計們。

Ramsey El-Assal, Barclays.

拉姆齊·阿薩爾，巴克萊銀行。

Hi, Jack and Amrita. Thanks for taking my question this evening. Amrita, you mentioned some timing-related impacts to Q4 gross profit. Can you give us a little more color on what those items are? And also, any thoughts about when they might flow in more precisely next year?

嗨，傑克和阿姆麗塔。感謝您今晚回答我的問題。 Amrita，您提到了對第四季度毛利的一些與時間相關的影響。您能給我們更多關於這些物品的資訊嗎？另外，對於明年它們什麼時候可以更準確地流入有什麼想法嗎？

Sure. Happy to take that, Ramsey. So, first, on the specific items that shifted out of 20 of Q4, and we now expect to materialize in 2025, there's really kind of two key pieces to it. First, on the Square side, there's some partner benefits that we had expected to land in Q4 that would benefit our transaction costs, and we now expect them to land during 2025.

當然。很高興接受這一點，拉姆齊。因此，首先，關於第四季度 20 項中移出的具體項目，我們現在預計將在 2025 年實現，其中確實有兩個關鍵部分。首先，在 Square 方面，我們原本預計在第四季實現一些合作夥伴福利，這將有利於我們的交易成本，現在我們預計這些福利將在 2025 年實現。

From a Cash App perspective, secondly, we've shifted the expansion of Cash App Borrow to new customer segments into 2025. One example of this sort of expansion that we're talking about is that we're planning to use Borrow as an incentive to drive paycheck deposit adoption, which we'll now expect to scale during the year next year. We're super excited about the potential here. We started some early testing on it.

其次，從 Cash App 的角度來看，我們已將 Cash App Borrow 的擴展轉移到 2025 年的新客戶群。採用，我們現在預計明年會擴大規模。我們對這裡的潛力感到非常興奮。我們開始對其進行一些早期測試。

We've also delayed some expansion around underwriting criteria. As you saw in Jack's letter, lending has tremendous value to the broader ecosystem by driving engagement and retention, and product adoption. So, we're excited about the opportunities with Borrow, some of which we had previously expected to materialize in Q4, but now we expect to see from a timing perspective in 2025. Just to level up briefly on the overall Q4 guide, we're raising the bottom line guidance, and that's even as we expect to continue ramping our go-to-market spend to drive growth into 2025.

我們也推遲了一些有關承保標準的擴展。正如您在傑克的信中看到的那樣，貸款透過提高參與度、保留率以及產品採用率，對更廣泛的生態系統具有巨大價值。因此，我們對 Borrow 的機會感到興奮，其中一些機會我們之前預計將在第四季度實現，但現在我們預計從時間角度來看將在 2025 年實現。我們正在提高底線指引，即使我們預計將繼續增加上市支出以推動2025 年的成長。

And we see underlying sort of healthy trends and momentum across each of the ecosystems based on what we're seeing so far in October. With Square, strong signals as noted earlier in GPV growth. With Cash App healthy year-over-year growth in inflows per active through October, which we expect to continue through Q4. And encouraging momentum around paycheck direct deposit actives as well. And then as you heard, execution across a number of different new product launches, whether it's Square preauthorization or enhanced restaurant point-of-sale with more to come, things like Afterpay and the Cash App Card and our single app within Square, all of which we expect to grow -- support our growth into next year. So, some healthy underlying momentum that we're seeing even in early Q4.

根據 10 月迄今所看到的情況，我們看到每個生態系統都存在潛在的健康趨勢和勢頭。如同先前所提到的，Square 在 GPV 成長方面發出了強烈訊號。截至 10 月份，Cash App 的每位活躍用戶流入量均實現健康的年增長，我們預計這種情況將持續到第四季度。薪資直接存款活動的動能也令人鼓舞。然後正如您所聽到的，執行了許多不同的新產品發布，無論是Square 預授權還是增強的餐廳銷售點以及更多即將推出的產品，例如Afterpay 和Cash App Card 以及Square 內的單一應用程序，所有這些我們預計會成長——支持我們明年的成長。因此，即使在第四季度初，我們也看到了一些健康的潛在勢頭。

Thanks, Amrita.

謝謝，阿姆麗塔。

Will Nance, Goldman Sachs.

威爾·南斯，高盛。

I appreciate you taking the question today. I wanted to ask just on some of the trends in Cash App and just how you guys are thinking about balancing the user growth algorithm versus the ARPU expansion. And maybe you can kind of talk through some of the trends you saw this quarter. I think MAUs were relatively stable.

我很感謝你今天提出這個問題。我想問 Cash App 的一些趨勢，以及你們如何考慮平衡用戶成長演算法與 ARPU 擴展。也許您可以談談本季看到的一些趨勢。我認為每月活躍用戶數相對穩定。

What's sort of the expectation over the next year or so?

對未來一年左右的期望是什麼？

Hey, Will, I can get us started on this. So, what we saw from an MAU standpoint was 57 million monthly active, relatively consistent with the end of the second quarter, up 3% year-over-year. Maybe let's just talk about some of the drivers for that and where we are seeing real growth from an engagement perspective. So, first, we think longer term, there is a significant opportunity to continue to drive growth with actives.

嘿，威爾，我可以讓我們開始這個。因此，從每月活躍用戶數來看，我們看到的是 5,700 萬，與第二季末相對一致，年增 3%。也許我們只是談談一些驅動因素，以及我們從參與度角度看到的真正成長。因此，首先，我們認為從長遠來看，存在著繼續利用活性物質推動成長的重大機會。

We've got room to grow around our digital-native audiences, millennials, and Gen Z customers and real resonance there. In the near term, from a year-over-year growth perspective, we do expect to see more moderated growth and likely, we'll end the year as well in that sort of 57 million monthly active range. There's two reasons for this that are part of our deliberate strategy in our bank the base strategy. First is our focus is around engagement.

我們有圍繞數位原生受眾、千禧世代和 Z 世代客戶的發展空間，並在他們身上產生真正的共鳴。短期內，從同比增長的角度來看，我們確實預計會看到更溫和的增長，並且很可能到年底我們的月活躍用戶數也會保持在 5700 萬的範圍內。造成這種情況的原因有兩個，它們是我們銀行基本策略中深思熟慮的策略的一部分。首先，我們的重點是參與度。

As you've noted with our ARPU trend lines at $75 in the third quarter versus $65 last year, a growth of 16% year over year, we're seeing strong engagement on the platform. And we've put emphasis on driving product adoption, driving share of wallet. You see that come through in products like Cash App Card or Cash App Borrow or Buy Now, Pay Later, where we've seen transactions increase, where we've seen Cash App Card spend increase on a year-over-year basis, and strong engagement inflows per active up 9%.

正如您所注意到的，我們第三季度的 ARPU 趨勢線為 75 美元，而去年為 65 美元，同比增長 16%，我們看到該平台的參與度很高。我們專注於推動產品採用、提高錢包份額。您將看到這一點在諸如 Cash App Card 或 Cash App Borrow 或 Buy Now, Pay Later 等產品中得到體現，我們看到這些產品的交易量有所增加，Cash App Card 的支出逐年增加，每個活躍用戶的參與流量強勁成長9%。

The second key piece of our strategy is driving enhancements to the platform, where our focus is on promoting a healthy ecosystem as we're working to build a primary banking relationship with customers, building a healthy and safe platform are critical to that work for both existing customers as well as new.

我們策略的第二個關鍵部分是推動平台的增強，我們的重點是促進健康的生態系統，因為我們正在努力與客戶建立主要的銀行關係，建立一個健康和安全的平台對於雙方的工作都至關重要現有客戶以及新客戶。

And so, we made some adjustments around onboarding flow, limits, and other controls, which enable us to create greater access and opportunities for cross-selling but do have some trade-offs in terms of new actives growth. And we think those trade-offs are worthwhile as we're building the deepening trust and engagement with our customers.

因此，我們圍繞入職流程、限制和其他控制措施進行了一些調整，這使我們能夠為交叉銷售創造更大的准入和機會，但在新活動增長方面確實需要進行一些權衡。我們認為這些權衡是值得的，因為我們正在與客戶建立加深的信任和互動。

Great. Appreciate you taking the question tonight.

偉大的。感謝您今晚提出這個問題。

Dan Dolev, Mizuho.

丹‧多列夫，瑞穗。

Hey, guys, good evening. Thanks for taking my question. I want to ask like a bigger strategic question, Jack. Like I saw the shareholder letter. It looks like a lot of nice returns on the lending products. Can we touch on it a little bit long term as you think about how these different lending products are enhancing the entire ecosystem as you continue to scale? Thank you.

嘿，夥計們，晚上好。感謝您提出我的問題。我想問一個更大的戰略問題，傑克。就像我看到股東信一樣。看起來貸款產品的報酬率很高。當您思考這些不同的貸款產品如何隨著您的不斷擴展而增強整個生態系統時，我們能否從長遠角度談談這個問題？謝謝。

Yeah, absolutely. I mean, I think this is one of the things that will ultimately set both Square and Cash App apart. It certainly did for Square in the early days when we launched what we call back then Square Capital. Just having an easy option for sellers to potentially increase our sales by getting an appropriately sized loan right to their email inbox and an invite to opt into it and then paying back through just making sales to their customers really took off.

是的，絕對是。我的意思是，我認為這是最終使 Square 和 Cash App 與眾不同的原因之一。在早期，當我們推出我們稱之為「Square Capital」的公司時，Square 確實做到了這一點。只要為賣家提供一個簡單的選擇，就可以透過在他們的電子郵件收件匣中獲得適當規模的貸款並邀請選擇加入，然後透過向客戶銷售來償還，從而潛在地增加我們的銷售額，這確實取得了成功。

And it kind of guides how we think about all of our lending products. We want to lead with technology, and that means that we have a deep understanding of our sellers, our Cash App customers, our Afterpay customers, and merchants. And we want to make it very transparent and upfront, so they know exactly what they're going to pay. There's no hidden fees.

它在某種程度上指導了我們如何看待我們所有的貸款產品。我們希望以技術領先，這意味著我們對我們的賣家、Cash App 客戶、Afterpay 客戶和商家有深入的了解。我們希望使其變得非常透明和預先，以便他們確切地知道他們將要支付的費用。沒有隱藏費用。

Everything is visible. So, they know what they're taking part of. And then finally is simplicity and specifically around the payback experience. That's where it really matters.

一切都是可見的。所以，他們知道自己正在參與什麼。最後是簡單性，特別是圍繞著回報體驗。這才是真正重要的地方。

Because with the simple payback experience, it doesn't really feel like a loan. It feels like something that you can use right in time to do whatever you need to do, whether it be buy a new salon chair to double your sales or just hold you over for the week before your paycheck in the Cash App case.

因為有了簡單的還款體驗，它並不真的感覺像貸款。感覺就像你可以及時使用它來做你需要做的任何事情，無論是購買一把新的沙龍椅以使你的銷售額翻倍，還是在現金應用程序箱中讓你在發薪水之前一周停留。

So, this will be a reason that people stay, and that's traditionally one of the big reasons why people do is because they have access to something like this built right into the point of sale, built right into their app that they started with peer-to-peer and have moved on to banking and using the Cash App Card. I think the most exciting thing for us is putting Afterpay on the Cash App Card, and then just how that extends the potential.

因此，這將是人們留下來的一個原因，而這傳統上是人們留下來的重要原因之一，因為他們可以訪問直接內建在銷售點、內置於他們與同行一起開始的應用程式中的類似內容-點對點並已轉向銀行業務並使用 Cash App Card。我認為對我們來說最令人興奮的事情是將 Afterpay 放在 Cash App 卡上，以及如何擴展潛力。

And obviously, the scale of the Cash App Card is meaningful enough, like it really changes the game for our customers and obviously, our business as well. And we think these are great options for investors in these products, but we have a lot of flexibility in the future, including SFS as we think about these products and as we move forward.

顯然，現金應用卡的規模足夠有意義，就像它確實改變了我們的客戶的遊戲規則，顯然也改變了我們的業務。我們認為這些對於這些產品的投資者來說是很好的選擇，但我們在未來有很大的靈活性，包括在我們考慮這些產品和前進時的 SFS。

But in terms of the ecosystem today, it's really focused on retaining through providing entirely new utility, which is extremely useful for these customer bases. And then little by little, as people understand the benefits, I think it becomes an acquisition channel for us, a reason why people want to download Cash App and use it, a reason why people want to download Square as their point of sale and use it for their business, whether that be one location or multiple.

但就當今的生態系統而言，它實際上專注於透過提供全新的實用程式來留住客戶，這對這些客戶群非常有用。然後一點一點地，隨著人們了解其好處，我認為它成為我們的獲取管道，人們想要下載 Cash App 並使用它的原因，人們想要下載 Square 作為銷售點並使用它的原因為他們的業務提供支持，無論是一個地點還是多個地點。

So, it's banking as a category is a huge differentiator for us and something that we'll continue to invest in. But it also is a complement to everything else. We need to lead with all the other features that provide other utility and other revenue streams for us. We think there's a lot there, both on the Cash App side and also on the Square side, especially since we completed our orders migration, we can get back to building new things and new innovations for our sellers, whether that be software, hardware, or services.

因此，銀行業作為一個類別對我們來說是一個巨大的差異化因素，也是我們將繼續投資的領域。我們需要引領所有其他功能，為我們提供其他實用程式和其他收入來源。我們認為，無論是在 Cash App 方面還是在 Square 方面，都有很多東西，特別是自從我們完成訂單遷移以來，我們可以重新為我們的賣家建立新事物和新創新，無論是軟體、硬體、或服務。

And we've looked very deeply across our entire ecosystem for those connection points, which had even more utility and entirely new network effects like Cash App to Square merchants.

我們非常深入地檢視了整個生態系統，尋找這些連結點，這些連結點具有更多實用性和全新的網路效應，例如針對 Square 商家的 Cash App。

Thank you so much.

太感謝了。

Alex Markgraff, KBCM.

亞歷克斯·馬克格拉夫，KBCM。

Hey, everyone, thanks for taking my question. Earlier in the year, you all had indicated marketing around Cash App incentives should start in the back half. Just sort of curious to what extent this has started and some of the early learnings so far considering the bank the base efforts. And then Amrita, maybe just bring it all together for us with your earlier comments around activity levels that you're seeing among the active space more recently. Thanks.

嘿，大家好，謝謝你提出我的問題。今年早些時候，大家都表示圍繞 Cash App 激勵措施的行銷應該在下半年開始。只是有點好奇這已經開始到什麼程度，以及考慮到銀行的基礎努力，迄今為止的一些早期經驗。然後，Amrita，也許只是將您之前關於您最近在活動空間中看到的活動水平的評論匯總在一起。謝謝。

I'm happy to get us started here. I think what we're seeing from our bank the base strategy is really sort of coming together. First, from a product perspective, we believe the suite of tools, financial tools that we've built is compelling relative to what's out there with traditional banks. And we're intending to increase our investment behind go-to-market to bring awareness around that.

我很高興讓我們從這裡開始。我認為我們從銀行看到的基本策略確實是一致的。首先，從產品的角度來看，我們相信我們所建造的工具套件、金融工具相對於傳統銀行的工具來說是引人注目的。我們打算增加上市後的投資，以提高人們對此的認識。

Maybe just to unpack kind of what's going on in here, we've got benefits that help drive paycheck direct deposit acquisition and improve retention, a number of which are enumerated in the shareholder letter in which we've been building upon throughout the year and continue to build upon. We recently rolled out free paper money deposits as a new benefit. And as I mentioned earlier, we're testing access to borrow as a way to drive direct deposit, paycheck direct deposit actives. Encouraging signs, still early.

也許只是為了揭示這裡發生的事情，我們獲得了有助於推動薪水直接存款獲取和提高保留率的好處，其中一些在我們全年一直在努力的股東信中列舉了，繼續發展。我們最近推出了免費紙幣存款作為一項新福利。正如我之前提到的，我們正在測試借貸管道，作為推動直接存款、工資直接存款活動的一種方式。令人鼓舞的跡象，還為時過早。

We're also bringing greater visibility to these benefits in the app. We started rolling out a new in-app experience, a new version of our Money tab within Cash App in October that makes our direct deposit offering and all these sort of related benefits way more visible. We're only obviously a few weeks into this, but we're seeing high engagement and uplift in customers setting up direct deposits through that. And Cash App Card is, I think, another key piece of bringing visibility to our broader set of banking offerings and ultimately direct deposit.

我們還在應用程式中提高了這些優勢的可見度。我們在 10 月開始推出新的應用程式內體驗，即 Cash App 內的新版本 Money 選項卡，這使得我們的直接存款服務和所有這些相關的好處更加明顯。顯然，我們才剛開始幾週，但我們看到客戶透過該方式建立直接存款的參與度很高，並且有所增加。我認為，Cash App Card 是讓我們更廣泛的銀行產品和最終直接存款可見度的另一個關鍵部分。

Obviously, as you've heard, we have a lot of excitement about bringing Afterpay to the Cash App Card. And we see that as an opportunity to drive engagement and ultimately attach to our banking products and direct deposit. Specifically within go-to-market, our focus is on scaling several channels, including performance marketing, incentives, referrals, and brand marketing. And you'll see us do that in the fourth quarter, included in our guide is a step-up in marketing related to that and into 2025 with the intent of ultimately building trust and awareness around all of these financial services products.

顯然，正如您所聽到的，我們對將 Afterpay 引入 Cash App 卡感到非常興奮。我們認為這是一個推動參與並最終附加到我們的銀行產品和直接存款的機會。具體來說，在進入市場方面，我們的重點是擴展多個管道，包括績效行銷、激勵、推薦和品牌行銷。您將看到我們在第四季度做到這一點，我們的指南中包括與此相關的行銷升級，並到 2025 年，目的是最終建立對所有這些金融服務產品的信任和認識。

So, we're pretty excited about what we're seeing. As you noted earlier, strong engagement even so far without driving a step-up in marketing. But with now bringing it all together from an awareness standpoint, we're excited to see what lies ahead.

所以，我們對所看到的感到非常興奮。正如您之前指出的那樣，即使到目前為止，參與度也很高，但並未推動行銷的升級。但現在從意識的角度將所有這些結合在一起，我們很高興看到未來的發展。

Thanks.

謝謝。

Jeff Cantwell, Seaport Research.

傑夫‧坎特韋爾，海港研究中心。

Hey, thank you very much. Then question is for Jack. Your company has been focused on Bitcoin for many years. I want to pivot a little bit away from Square and Cash App and ask about that because at the moment, it's increasingly sounding like there's potential opportunities for greater regulatory clarity on crypto in the US.

嘿，非常感謝你。那麼問題就是問傑克的。貴公司多年來一直專注於比特幣。我想稍微遠離 Square 和 Cash App 並詢問這個問題，因為目前，聽起來越來越有可能在美國對加密貨幣進行更明確的監管。

So, first of all, do you agree with that statement? And can you maybe talk a little bit about Block's Bitcoin strategy and how you might capitalize on that development? Also, can you remind us how much BTC you have on the balance sheet and talk about whether you might be adding to that in the future? And then lastly, I'll ask all mine upfront. Can you just give us your thoughts on what greater regulatory clarity might mean for crypto in general? Does that kind of open up the possibility for more acceptance and usage here in the US and globally? Thanks.

那麼，首先，你同意這個說法嗎？您能否談談 Block 的比特幣策略以及如何利用這項發展？另外，您能否提醒我們您的資產負債表上有多少 BTC，並談談您將來是否可能增加這個數字？最後，我會提前詢問我的所有情況。您能否告訴我們您對監管透明度的提高對加密貨幣產業意味著什麼的看法？這是否為美國和全球更多接受和使用開闢了可能性？謝謝。

Yeah. I think greater clarity will definitely be extremely helpful because it allows us to move much faster because we know what the rules are and what the common understanding is, especially in the US. And I think this is generally a net positive for the industry. We're only focused on Bitcoin, and we're only focused on Bitcoin because we want the Internet to have a native currency.

是的。我認為更大的清晰度肯定會非常有幫助，因為它使我們能夠更快地採取行動，因為我們知道規則是什麼以及共識是什麼，尤其是在美國。我認為這對整個行業來說總體上是積極的。我們只關注比特幣，我們只關注比特幣，因為我們希望網路有一種原生貨幣。

And the reason we want that is because we want to accelerate our business. If we have a native currency for the Internet, it means we can move money much faster, and we can offer Cash App products and Square products in every single market instead of the market-by-market push that we have to do today. So, what we're focused on in terms of our strategy overall on Bitcoin is making it more accessible, making sure that more people can access Bitcoin, buy, sell it, obviously, but also send it peer-to-peer. We want to make it more secure.

我們希望這樣做的原因是我們想加速我們的業務。如果我們擁有網路的原生貨幣，這意味著我們可以更快地轉移資金，並且我們可以在每個市場提供 Cash App 產品和 Square 產品，而不是像今天那樣逐個市場地推動。因此，就比特幣的整體策略而言，我們關注的重點是使其更容易獲得，確保更多的人可以訪問比特幣，購買、出售它，當然，也可以點對點發送它。我們想讓它更安全。

Our manifestation of this is around [Bitkey] and making sure that we help in every way possible to better secure the network. Mining and our mining initiative is a big part of this. And ultimately, we want to make it usable every day. This is a longer-term strategy.

我們的表現是圍繞 [Bitkey] 並確保我們以各種可能的方式提供幫助，以更好地保護網路。採礦和我們的採礦計劃是其中的重要組成部分。最終，我們希望讓它每天都能使用。這是一個更長期的策略。

This is where we get into actual payments on the Internet and having an open protocol for payments on the Internet, which it needs and it's going to happen at some point. It's just a matter of time. And Bitcoin has the strongest adoption. It has the strongest belief system, and it has all the attributes necessary to trust it as a currency, including having no security issues, never being down, and having a significant developer community behind it that make it stronger and more secure, and faster every day.

這就是我們在互聯網上實際支付的地方，並擁有一個開放的互聯網支付協議，這是它所需要的，並且它會在某個時候發生。這只是時間問題。比特幣的採用率最高。它擁有最強大的信仰體系，並且擁有信任它作為貨幣所需的所有屬性，包括沒有安全問題、永不宕機，以及背後有一個重要的開發者社區，使其更強大、更安全、更快。

If there are two areas I'd point you to in terms of manifestation of Bitcoin, it'd probably be the Cash App exchange, number one, because it's the starting point for people participating in this future currency. And then second is mining. Mining is, we think, going to be pretty large for us because we've been developing ASICs for quite some time. There's a specialized version of an ASIC.

如果就比特幣的表現形式而言，我要向您指出兩個領域，那麼它可能是排名第一的現金應用程式交易所，因為它是人們參與這種未來貨幣的起點。其次是採礦。我們認為，挖礦對我們來說將是相當大的，因為我們開發 ASIC 已經有一段時間了。有一個專用版本的 ASIC。

Our competitors, only one main competitor here. And a lot of the -- a lot of mining folks just want another option. We'll leave it at that. But they want another option that is reliable, that is configurable, that they can customize to their needs, and whether that be buying the chip or the [hashboard] or even entire system, having other options out there is significant.

我們的競爭對手，這裡只有一個主要競爭對手。很多礦工只是想要另一個選擇。我們就這樣吧。但他們想要另一種可靠的、可配置的、可以根據自己的需求進行定制的選擇，無論是購買晶片還是[算力板]甚至整個系統，擁有其他選擇都很重要。

And you probably saw our announcement of one of those deals, and there are more to come because there's a huge gap in the market in terms of quality of these machines and also focus on it. And we have a team that can do both, fortunately. So, we will continue to look at the space and continue to work on products and features that help across those three things: accessibility, making it more secure, and making it more usable every day.

您可能已經看到了我們宣布的其中一項交易，而且還會有更多交易，因為市場上這些機器的品質存在巨大差距，也需要關注它。幸運的是，我們有一支可以同時做到這兩點的團隊。因此，我們將繼續關注這個領域，並繼續致力於開發有助於實現這三件事的產品和功能：可訪問性、使其更安全以及使其每天更可用。

And Jeff, just on your question about Bitcoin on the balance sheet. We have just over 8,300 Bitcoin on the balance sheet, which as of the end of the quarter was worth $530 million. And obviously, current trading values is worth about $100 million more than that.

傑夫，關於資產負債表上的比特幣問題。我們的資產負債表上有超過 8,300 個比特幣，截至本季末價值 5.3 億美元。顯然，目前的交易價值比這個值高出約 1 億美元。

Great. Thanks for all that. Appreciate it.

偉大的。感謝這一切。欣賞它。

Harshita Rawat, Bernstein.

哈希塔·拉瓦特，伯恩斯坦。

Hi. Good afternoon. I want to ask about OpEX. This year, you exceeded your objective here and also came in below the constraints you placed on yourself.

你好。午安.我想問一下關於OpEX的問題。今年，你超越了自己的目標，但也低於你給自己設定的限制。

Amrita, how do you think about further efficiency gains here from kind of streamlining resources which you've been doing? And how does that balance against some of your go-to-market investments in Square and also marketing spend of Cash App? Thank you.

Amrita，您如何看待透過您一直在做的精簡資源來進一步提高效率？這與您在 Square 上的一些上市投資以及 Cash App 的行銷支出有何平衡？謝謝。

Sure, Harshita. What I would say is that we still see significant opportunity across building leverage in multiple areas of our operating expense base. Maybe three key areas to call out so that we can make room for our go-to-market initiatives where we are seeing high returns, in which we do expect to accrete in terms of long-term profitable growth. But those three key areas being personnel expenses, structural costs, and corporate overhead.

當然，哈西塔。我想說的是，我們仍然看到在營運費用基礎的多個領域建立槓桿作用的重大機會。也許需要指出三個關鍵領域，以便我們能夠為我們的進入市場計劃騰出空間，在這些領域我們看到了高回報，我們確實期望在長期盈利增長方面有所積累。但這三個關鍵領域是人員費用、結構成本和公司管理費用。

From a personnel perspective, we've got a people cap in place. We believe that that sort of a constraint affords us creativity around and prioritization around how we focus our efforts against our strategies, against delivering value to customers. And with 19% growth this quarter, 15% growth -- at least 15% growth next year, you see a tremendous amount of leverage on that fixed expense base as we remain under our people cap. Secondly, from a structural cost perspective, we see further opportunities around unit costs when we look at how we operate our products, whether in partnership with others or as we run our machine learning models from an underwriting and risk loss perspective.

從人員角度來看，我們已經制定了人員上限。我們相信，這種限制為我們提供了創造力，並讓我們能夠優先考慮如何將我們的努力集中在我們的策略上，以及為客戶提供價值。本季成長率為 19%，成長率為 15%，明年至少成長率為 15%，您會看到固定費用基礎上存在巨大的槓桿作用，因為我們仍處於人員上限之下。其次，從結構成本的角度來看，當我們審視我們如何運作我們的產品時，無論是與他人合作，還是從承保和風險損失的角度運行我們的機器學習模型，我們都會看到單位成本方面的更多機會。

And then third, corporate overhead. It's a multiyear effort to examine each of our sort of key pieces around corporate overhead from T&E to professional services to cloud to software to travel and entertainment. And we think that there is more opportunity for us to ensure that we can put as many of our investment dollars toward our customers as possible.

第三，公司管理費用。我們花了多年的努力來檢查我們圍繞企業管理費用的每一個關鍵部分，從差旅和娛樂到專業服務到雲端到軟體到旅行和娛樂。我們認為我們有更多的機會來確保我們能夠將盡可能多的投資資金投入到我們的客戶身上。

And we also, as noted in the shareholder letter, make decisions against our own progress and hold ourselves accountable to a high bar and, as a result of that, have made some recent decisions with respect to some of our emerging initiatives, where we're reducing our team size on title and winding down our TBD efforts.

正如股東信中所指出的，我們也根據自己的進展做出決定，並要求自己對高標準負責，因此，我們最近就一些新興舉措做出了一些決定，其中我們'我們正在縮小我們的團隊規模，並逐步結束我們的待定工作。

But in an effort to be able to put more investment against the areas that are working, that have found product market fit, like our Bitcoin mining initiative, as you heard from Jack, where we have a healthy pipeline of demand or things like our self-custody wallet for Bitcoin Bitkey, which was recently named one of the best inventions of 2024 by TIME. So, we are continuously evaluating ourselves, our performance and holding ourselves to a high bar. And I think that's how we expect to drive further margin improvement next year.

但是，為了能夠對正在發揮作用的領域進行更多投資，這些領域已經找到適合產品市場的領域，例如我們的比特幣採礦計劃，正如您從傑克那裡聽到的那樣，我們擁有健康的需求管道或像我們自己這樣的東西-比特幣 Bitkey 託管錢包，最近被《時代》周刊評為 2024 年最佳發明之一。因此，我們不斷評估自己、我們的表現並保持高標準。我認為這就是我們預計明年進一步提高利潤率的方式。

Thank you.

謝謝。

Andrew Bauch, Wells Fargo.

安德魯·鮑赫，富國銀行。

Hey, thank you for taking the question. I know it's been asked before, but I just wanted to hone in on GPV again. You said that growth was double digit in October, but we're only expecting kind of a modest improvement in fourth quarter versus third quarter. So, maybe you can kind of just help us understand why only a modest instead of something more robust.

嘿，謝謝你提出問題。我知道以前有人問過這個問題，但我只是想再磨練一下 GPV。您說 10 月的成長為兩位數，但我們僅預期第四季與第三季相比略有改善。所以，也許你可以幫助我們理解為什麼只是一個適度的而不是更強大的東西。

Yeah. Well, look, we're still in the early days of November. So, we'll know more, obviously, as we get through November and December. November and December typically are months that are more impacted by holiday and seasonal spending, which we don't yet have a view on, and maybe more discretionary verticals is related to that.

是的。好吧，看，我們還在十一月初。因此，隨著 11 月和 12 月的到來，我們顯然會了解更多。 11 月和 12 月通常是受假期和季節性支出影響更大的月份，但我們對此還沒有看法，也許更多的可自由支配的垂直行業與此相關。

So, obviously, update you as we know more. But what we did see in October is, as I noted, a couple of percentage points of improvement in the US of that 4.9% year-over-year growth in Q3 and also improvement even on the international growth, which was obviously already strong at 20% year over year in the third quarter. We think that there's even more opportunity as we look to 2025 and our own execution in terms of customer acquisition, in terms of all these product initiatives coming to bear.

因此，顯然，隨著我們了解更多信息，請更新您的信息。但正如我所指出的，我們在 10 月確實看到，美國比第三季 4.9% 的年成長率提高了幾個百分點，甚至國際成長也有所改善，而國際成長顯然已經很強勁了。較去年同期成長20%。我們認為，展望 2025 年，以及我們自己在客戶獲取方面的執行力以及所有這些即將實施的產品計劃，將會有更多的機會。

Great. Thank you, Amrita.

偉大的。謝謝你，阿姆麗塔。

Trevor Williams, Jefferies.

特雷弗威廉斯，杰弗里斯。

Great. Thanks a lot. I wanted to go back to Afterpay on Cash Card, if you're able to share anything more specific in terms of timing for a broader rollout. And then any early learnings just from the more limited launch that you've done to date around how it's complementing the existing debit spend on Cash Card? Anything just in terms of what kind of uplift you're seeing? Thanks very much.

偉大的。多謝。我想回到現金卡上的 Afterpay，如果您能夠分享更具體的關於更廣泛推廣的時間表的話。那麼，從您迄今為止所做的更有限的發布中獲得的任何早期經驗，關於它如何補充現金卡上現有的借記卡支出？您看到了什麼樣的提升？非常感謝。

Nothing specific on the date. We want to make sure that we get the whole experience correct, but the results have been very, very encouraging from our customers. And we see that this is a meaningful opportunity for us that we're going to roll out and scale over the next short time.

沒有具體的日期。我們希望確保我們獲得正確的整體體驗，但我們的客戶的結果非常非常令人鼓舞。我們認為這對我們來說是一個有意義的機會，我們將在接下來的短時間內推出並擴大規模。

But the scale of the Cash App Card and the functionality of Buy Now, Pay Later and making sure that people can easily access and not have to think too much about it, but just using their Cash App Card. And going back to what I said about our lending ecosystem, like the focus here is on technology to make sure that like we are able to offer this to as many people as possible, the transparency that they'll be able to see and trust it more because of that and then also the simplicity. And specifically, where the simplicity matters is around the payback. So, we're really excited about it and can't wait to continue to roll it out.

但 Cash App 卡的規模和「先買後付」的功能確保人們可以輕鬆訪問，而不必考慮太多，只需使用他們的 Cash App 卡即可。回到我關於我們的貸款生態系統所說的，這裡的重點是技術，以確保我們能夠向盡可能多的人提供這種服務，他們能夠看到並信任它的透明度更多的是因為這一點以及簡單性。具體來說，簡單性最重要的地方在於回報。因此，我們對此感到非常興奮，迫不及待地想繼續推出它。

And Trevor, I'd just add. Similar to what you've seen us do with our other lending products and more recently with Cash App Borrow, is that we're going to be pretty careful and methodical in terms of how we ramp the product. As you heard from Jack, we're super excited here, but we want to make sure that we're ramping, iterating, learning as we test. What we'd expect to see is initially millions of monthly actives of our Cash App Card monthly actives should be eligible next year.

還有特雷弗，我想補充一下。與您所看到的我們對其他貸款產品以及最近的 Cash App Borrow 所做的類似，我們將在如何提升產品方面非常謹慎和有條理。正如您從傑克那裡聽到的，我們在這裡非常興奮，但我們希望確保我們在測試時不斷進步、迭代和學習。我們期望看到的是，我們的 Cash App 卡月度活動最初將在明年達到數百萬的月度活動資格。

Obviously, a subset of them will actually convert to using the product. And that over time, we expect to grow both eligibility and do things to try to drive conversion, higher conversion over time as well. We're going to start first with the retroactive offer, which is you can effectively, after you make a purchase, retroactively paying for. And then we'll expand to allow customers to turn on Afterpay before they make a purchase.

顯然，他們中的一部分人實際上會轉而使用該產品。隨著時間的推移，我們希望提高資格，並採取措施努力提高轉換率，隨著時間的推移，轉換率也會更高。我們將首先從追溯優惠開始，即您可以在購買後有效地追溯付款。然後我們將進行擴展，允許客戶在購買前啟用 Afterpay。

So, we're being deliberate both in terms of the use cases that we roll out, the number of customers that we make eligible, and then looking to see how that conversion plays out over time with an eye toward ramping eligibility and conversion as we go throughout time.

因此，我們正在仔細考慮我們推出的用例、我們符合條件的客戶數量，然後觀察隨著時間的推移，這種轉換如何發揮作用，著眼於隨著我們的發展，提高資格和轉換率。 。

Andrew Jeffrey, William Blair.

安德魯傑弗裡，威廉布萊爾。

I appreciate you sneaking me in here at the end. Amrita, I wanted to ask about Cash App monetization and kind of how we think about progressing. I think, first of all, just kind of what the composition of that looks like today between the different drivers, interchange in particular, and whether interchange becomes a greater contributor with direct deposit. I imagine it will, but I'm just trying to dimensionalize that and think about trends in monetization.

我很感激你最後偷偷帶我來這裡。 Amrita，我想詢問有關 Cash App 貨幣化的問題以及我們如何看待進展。我認為，首先，今天不同驅動程式之間的組成是什麼樣的，特別是交換，以及交換是否成為直接存款的更大貢獻者。我想它會的，但我只是試著將其維度化並思考貨幣化的趨勢。

Sure. You know, what I would say is that we see health across -- healthy trends across a number of different products for Cash App. When we look at what's driving the strong performance, gross profit up 21% year over year in the third quarter, inflows up 13% year over year, monetization rate actives all growing as well. What we see is Cash App Card, Borrow or Buy Now, Pay Later platform, cash App Pay, each of these products driving meaningful growth.

當然。你知道，我想說的是，我們看到了現金應用程式許多不同產品的健康趨勢。當我們看看推動強勁業績的因素時，第三季毛利年增 21%，資金流入年增 13%，活躍貨幣化率也都在成長。我們看到的是現金應用卡、立即藉用或立即購買、稍後付款平台、現金應用支付，這些產品中的每一個都推動了有意義的成長。

Cash App Card is our largest gross profit revenue stream, our primary driver of growth with both active and spend per active growing on a year-over-year basis. It's now become a daily utility for our monthly actives. We're seeing an average of six times transactions in terms of transactions per week. And we're doing -- there's more that we can do here, drive -- putting more marketing dollars behind driving Cash App Card actives.

現金應用卡是我們最大的毛利收入來源，也是我們成長的主要驅動力，活躍人數和每個活躍人數的支出均較去年同期成長。現在它已成為我們每月活動的日常實用程式。就每週交易而言，我們平均看到六次交易。我們正在做——我們在這裡可以做更多的事情，推動——投入更多的行銷資金來推動現金應用卡活動。

And this is really an entry point, as I was noting earlier, for our customers and how they look at our broader suite of financial services products. Borrow also with strong momentum. Gross profit growth up more than two times year over year in the third quarter. And Buy Now, Pay Later, inclusive of our ads -- burgeoning ads revenue stream on that platform with 29% gross profit growth in the third quarter, 23% GMV growth, both those rates stronger than where we were in the prior quarter, so an improvement in growth.

正如我之前指出的，這對我們的客戶以及他們如何看待我們更廣泛的金融服務產品套件來說確實是一個切入點。借債勢頭也強勁。第三季毛利年增兩倍多。現在購買，稍後付款，包括我們的廣告——該平台上蓬勃發展的廣告收入流，第三季度毛利潤增長 29%，GMV 增長 23%，這兩個比率都比上一季度強，所以增長的改善。

And then with Cash App Pay, we've seen tremendous momentum here. Cash App Pay monthly actives have actually now surpassed Afterpay's North American actives. And we're adding more and more partnerships, new enterprise merchants. We recently launched -- announced our partnership with Lyft, which has more than 23 million active riders in North America and seeing rapid, again, adoption with minimal marketing spend behind it, and we will be leaning into marketing.

然後透過 Cash App Pay，我們看到了巨大的發展勢頭。 Cash App Pay 的每月活躍量實際上已經超過了 Afterpay 的北美活躍量。我們正在增加越來越多的合作夥伴、新的企業商家。我們最近宣布了與 Lyft 的合作夥伴關係，Lyft 在北美擁有超過 2300 萬活躍乘客，並且在其背後的營銷支出很少的情況下再次看到了快速的採用，我們將傾向於營銷。

We just started some in the third quarter to activate some marketing campaigns and drive awareness of Cash App Pay. So, again, I think we see multiple levers for continued growth and ramping of our existing products. And then with new products to come like Afterpay and Cash App Card, we see further opportunity around driving engagement monetization rate into the future.

我們剛剛在第三季啟動了一些行銷活動並提高了 Cash App Pay 的知名度。因此，我再次認為，我們看到了多種手段來實現現有產品的持續成長和提升。隨著 Afterpay 和 Cash App Card 等新產品的出現，我們看到了未來更多推動參與度貨幣化率的機會。

Thank you.

謝謝。

And ladies and gentlemen, this concludes today's call. We thank you for participating. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。我們感謝您的參與。您現在可以斷開連線。