Release Date: November 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Can you provide more details on the expected growth acceleration for Square's GPV in the U.S. next year? A: Amrita Ahuja, CFO, explained that they expect modestly improved growth in the fourth quarter relative to the second quarter and further acceleration into 2025. This confidence is based on recent improvements in year-over-year Square GPV growth each month since July through October, driven by same-store growth across verticals and encouraging trends in customer acquisitions.
Q: Could you elaborate on the field sales strategy for Square and its expected impact? A: Amrita Ahuja, CFO, mentioned that they have their first group of dedicated field sales reps in the market and plan to continue hiring. This strategy is expected to support brand perception and partnership marketing. They have seen a 10% to 20% improvement in per rep productivity year-to-date and believe there is more opportunity to increase this further.
Q: How is Block addressing regulatory challenges in the fintech banking sector? A: Jack Dorsey, CEO, emphasized the focus on building stronger systems and leveraging technology to stay ahead of regulatory changes. They are investing in compliance programs and building redundancy across their business to ensure resilience in an evolving regulatory environment.
Q: What are the key factors affecting Q4 gross profit guidance, and when might these impacts materialize? A: Amrita Ahuja, CFO, noted two key factors: a delay in partner benefits affecting transaction costs and the shift of Cash App Borrow expansion to new customer segments into 2025. These are expected to materialize during 2025, with borrow being used as an incentive to drive paycheck deposit adoption.
Q: How is Cash App balancing user growth with ARPU expansion, and what are the trends in monthly active users? A: Amrita Ahuja, CFO, stated that Cash App had 57 million monthly actives, consistent with the previous quarter, with a focus on engagement and ARPU growth. They expect moderated growth in actives, focusing on driving product adoption and share of wallet, with ARPU growing 16% year-over-year.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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