BLOCK(US:SQ)2025-05-01 21:00Financial Data and Key Metrics Changes - Total Block gross profit was $2,290,000,000, up 9% year over year [9] - Adjusted EBITDA was $813,000,000, up 15% year over year [12] - Adjusted operating income was $466,000,000, up 28% year over year [12] - Adjusted free cash flow for the trailing twelve months ending in March was $1,530,000,000 compared to $1,070,000,000 a year ago [13] - The company expects gross profit growth of 12% for 2025, with 9.5% in Q2 and low double digits in Q3 [14] Business Line Data and Key Metrics Changes - Square gross profit grew by 9% year over year, driven by GPV growth of 7.2% [10] - Cash App gross profit was up 10% year over year, with gross profit per monthly transacting active reaching $81 [11] - The company saw a pronounced shift in consumer spending behavior, impacting Cash App inflows [12] Market Data and Key Metrics Changes - Global GPV growth for April was expected to be 9.6% year over year [18] - The company expects high single-digit GPV growth in Q2 [18] Company Strategy and Development Direction - The company is focused on product velocity and go-to-market strategies to gain market share [7] - Plans to expand Cash App's network, particularly targeting teens and families [7] - The company aims to leverage AI automation to enhance seller engagement and product offerings [7][30] - The launch of Cash App Afterpay is expected to drive growth in the second half of the year [16] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a more dynamic macro environment and reflected a cautious stance in guidance [14] - The company is prepared to navigate potential short-term volatility while focusing on long-term growth [21] - Management expressed confidence in the growth drivers for the second half of the year, including the expansion of Cash App Borrow [15] Other Important Information - The company has repurchased approximately $600,000,000 in stock so far this year [13] - The first product release event is scheduled to showcase over 100 new products and features [10] Q&A Session Questions and Answers Question: Can you provide more insight into the company's outlook given macro uncertainties? - Management highlighted internal changes and improvements in systems that are starting to yield results, particularly in Square [25][26] Question: What changed in consumer behavior during the tax refund season? - Management noted a change in Cash App customer behavior, impacting inflows, and reflected this in their guidance [36] Question: Can you elaborate on the Cash Card Afterpay functionality and its early results? - Management expressed excitement about the integration of Afterpay with Cash App, noting strong early adoption and plans for further rollout [44][46] Question: How does the company plan to expand its Borrow product? - Management indicated that the expansion of Borrow is tied to the capabilities of Square Financial Services, allowing for broader access and improved unit economics [51][88] Question: What are the key drivers behind Square's gross profit acceleration this year? - Management pointed to product innovation and enhancements in go-to-market strategies as key drivers for growth [68][70]