Block, Inc. (XYZ) Earnings Call Transcript & Summary

All right. Good afternoon, and -- on the East Coast, good morning on the West Coast. Thanks, everybody, for joining us. It's really great to have you all with us again and again, back to the Wolfe Fintech Forum. It's really great to have Amrita with us today, and Square, as everyone knows, is a name, we spent a lot of our time focused on from a research perspective. And we're going to get it in just a minute in a fireside chat. We're going to leave 5 minutes to the end if anyone has any questions they'd like to type in. Just before we start, I'm going to read a quick disclaimer, which is during this conversation, Amrita may make forward-looking statements, including about Square's preliminary expectations for its financial performance in February and the first week of March that are subject to certain risks and uncertainties. She may also speak to certain non-GAAP metrics. Please take a look at Square's most recent filings with the SEC for a discussion of the company's risk factors and for reconciliations of non-GAAP metrics to their most directly comparable GAAP financial measure. And so with that, again, thank you for joining us.

Thanks for having me, Darrin. It's good to be here.

Look, I mean, just starting off, I think just get to the heart of what people really care about, and let's start with Cash App first. I mean, just honestly, amazing to see where the business has come from. And 3 years ago, I just -- I don't think we would have ever imagined it being $1 billion business growing triple digits by 2020. And just based on the momentum exiting 2020, it just -- the outlook continues to look extremely bright. When we think about Cash App's innovation over the last year with regards to new features, it's obviously been impressive. Given the Square history, wouldn't expect much different in '21. Is there anything you can share around what exciting things you and the team are working on for this year? And probably a great place to start, given how much demand there is for that information.

Yes. Yes. No, we're excited about the prospects for Cash App. There's 3 strategic priorities to call out for 2021: first, foundational improvements we're making to the service; second, interconnecting ecosystem, and I'll explain what that means; and third, reaching new customers. So first, we're making improvements to strengthen the foundation for existing customers and reaching new customers in new demographics. Many of the improvements that we'll be focusing on can influence our customers' ability to inflow funds into Cash App. And that's important because our growth we've seen with Cash App is correlated to inflows. So what are some examples of these foundational improvements? One example is increasing transaction limits across our ecosystem. Today, customers can't currently easily pull in more than $10,000 per week into Cash App, which impacts their ability to store funds in Cash App and to buy stocks for Bitcoin. And we want to be able to influence that through some of the work we're doing on our compliance and customer service teams. We want to make it easier for people to be able to Direct Deposit funds into Cash App in new ways and making existing experiences around that easier for customers. And we're building out, as I mentioned, our customer service, which is increasingly important as customers are using Cash App in more ways to manage their money beyond just our peer-to-peer product. So foundational improvements, we think, are core. Though they may not be a flashy product headline, they are core to how our existing customers and our ability to access new customers, how those customers can use the Cash App platform in a broader way. And then connecting across product lines in the ecosystem gives us a chance to really deepen our relationships with our customers as we do more for them and they find greater daily utility in the app. And we think the breadth and the cohesion, similar to our Seller platform, of the different products within Cash App is a key differentiator for us. An example here is we recently started using Boost through Cash Card as a way to drive engagement for other products in our ecosystem. We had a Bitcoin Boost to earn rewards on Bitcoin, which drove further adoption of Bitcoin. We had in the fourth quarter 1 in 2 of our customers who'd got that Bitcoin Boost were new to the product. And 1 in 3 of them started buying Bitcoin in the following month. We saw a similar thing with Direct Deposit Boost in December, where we launched a special Boost, where customers could unlock that Boost after receiving their first paycheck within Cash App. So thinking about more ways that we can use various products within our ecosystem to drive engagement and usage and awareness of other products. And then, of course, third, from an investment perspective, we're going to focus on creative ways to reach and acquire new customers through our sales and marketing investments.

All right. That's really helpful. And Amrita, you shared a lot of new disclosures on Cash App's unit economics this past quarter. Can you just touch on what you're seeing around Cash, Cash in your recent cohorts? And how we should think about LTV or customer acquisition cost as well?

Yes. We've seen some very strong unit economics for Cash App across acquisition, retention, engagement, returns on investment. So let me talk you through some of the key stats that we see and that we track internally. From an acquisition standpoint, we look at the cost of customer acquisition on discretionary sales and marketing costs across paid marketing, brand spend, referrals and incentives. And what we saw as a customer acquisition cost across those areas of $5 in '20 -- of less than $5 in 2020. And that's against the backdrop of our network growing by 50% year-over-year to 36 million monthly actives. That less than $5 is much smaller than what a traditional financial institution would pay. And that's because we benefit from the efficacy of and the efficiency of our peer-to-peer network effects. By sending a transaction, a customer can bring in a new customer into Cash App at little to no cost for us. Retention, we look at our customers' engagement and monetization, and that has increased over time. We've seen gross profit retention on our existing cohorts of customers over the past 3 years at over 130%. What that means, to sort of illustrate the power of that figure, is that if we acquired a customer cohort 3 years ago that delivered $100 million -- $100 in gross profit 3 years ago, that customer cohort would have generated more than $200 in 2020. That is a powerful annuity stream to invest into. And then finally, on ROI, we've seen ROI of more than 6x return on the spend that we've made over a 3-year period with 2020 cohorts in Cash App pacing well ahead of that. The way to think about ROI is it's effectively the ratio of lifetime value to customer acquisition costs. And while CAC has stayed relatively steady for us at $5 or less than $5, we've seen growth improved profit per customer and therefore, lifetime value over time. And it's important to note that, that calculation of the 6x ROI is based on variable profit. That lifetime value that we measure is based on variable profit, which is gross profit less nondiscretionary sales and marketing spend like P2P processing costs, peer-to-peer risk cost, Cash Card issuance. So it's really a measure of a true variable profit and lifetime value of that customer. These are meaningful dynamics for us to invest behind, and we plan to lean in. We see room to increase our customer acquisition costs while still achieving strong ROI. And so we'll be investing in exploring new marketing channels, acquiring higher-value customers, as I mentioned earlier, moving upmarket and the higher income customers who can adopt more products and also reengaging the 80 million customers who have already transacted with Cash App but may not be using it on a regular basis.

Yes. No, the $5 number that I know you've called that before as a CAC is certainly lower. I mean, we've done a lot of work on neo banks and challenger banks. And I mean, it generally can be $15 to $30 at least. And obviously, as you said, some of the traditional banks can be over $100 to acquire customers. So it's a clear differentiator for you guys. Amrita, what's been the most underappreciated driver of Cash App's growth over the last few years in your view?

Yes. I think a primary driver of Cash App's growth that we are trying to share more and more with people is the power of inflows or the amount of funds that our customers pull into Cash App. So when you think about where we are today, customers pull inflows into the Cash App ecosystem in 4 different ways. There's peer-to-peer transfers, when someone is sending funds to another customer. There's transacting on our other products, which they're making a purchase on Cash Card or they're buying stocks or Bitcoin. There's adding cash. So pulling in funds to store in Cash App and to use later. You can do this on a recurring basis, an auto add cash feature. And then there's Direct Deposits, which is directly bringing in a paycheck or government funds. And these typically have larger amounts and generally are more recurring. And -- but it's today, relatively a smaller driver of overall inflows and one where we see fast opportunity. Over time, as we look ahead on the dynamics of dollar inflows into Cash App, we think that there's a big opportunity here to increase dollar inflows across a variety of drivers. First, obviously, in aggregate, as we grow our network of customers, we see growth related to the network, the dollar-based inflows that come in. But even on a per customer basis, we see the opportunity to grow inflows per customer over time through driving increased product adoption, through driving engagement in daily utility within the app, through the launch of new products. Obviously, our team has focused and has a history of product velocity over time. And as consumer spending power increases, as we've seen stimulus in the near term has had an impact on that, but longer term, as we think about moving upmarket, as we think about broader macro recovery and employment rates, and so we see inflows drive -- driving greater velocity of money to our platform, which ultimately leads to gross profit growth for Cash App. Now I talked about those longer-term trends. It is important to note in the near term, we do see correlation between our inflows consumer spending power, which has obviously been influenced by broader macro impacts and government fund inflows. You saw that in the growth rates that we talked about on the earnings call from December to January of 160% to 170% gross profit growth on a year-over-year basis, benefiting from government fund inflows versus February where we were pacing at about 130%. So we do expect near-term growth to vary depending on spending power, including employment rates and government programs. But we -- and we've obviously played an important part in the disbursement of those funds, but we also view our ability to invest into those strong cohort economics that we talked about earlier and to make progress on some of those foundational improvements that enable us to grow inflows over time on a per-person basis and in aggregate.

That's really good color. When we think about the long-term monetization potential, it's probably one of the most common questions we get now from investors, which we tried looking at it from a perspective of what you called out, 80 million users that had transacted on Cash App at least one time, and maybe that being more closer of a comparable number to some of the peers that put out active numbers that are really more annual than monthly. And when we just look at that, it feels like the monetization room is pretty long. I don't know if there's a way you can help us with this, but just thinking about Cash App's monetization road map, if there's any way for us to think about maybe even 10-year vision on this number, what do you see as an opportunity would be great.

Yes. I mean, look, we're looking at an addressable opportunity for Cash App of over $60 billion that we're less than 2% penetrated in. And that's based on the product suite that we have today in the markets that we are today, where we know the team has a track record of continuing to evolve and build upon over time. So we see a significant opportunity to grow here and in particular, to increase gross profit per customer through product adoption. When customers adopt products beyond peer-to-peer, we've seen a 3 to 4x lift in gross profit per customer. As they take on multiple products, that drives engagement and an increase in those inflows, as we were talking about earlier, the amount of funds pulled into Cash App. Our overall gross profit of $41, customers who use 2 or more products in Cash App generated gross profit per customer of closer to $100 in the fourth quarter. And those are on -- when they took on additional products beyond peer-to-peers, such as Cash Card, stocks, Bitcoin, our Boost product, Direct Deposit. But we see a long runway here because just on our existing base of customers, we see the opportunity to drive attach. Today, our highest attach rate product on the 36 million monthly actives is Cash Card, which, as we last shared, was about 1 in 4 of our monthly actives. Stocks and Bitcoins, both of which are about 1 in 10 attached or less to our growing base of monthly actives. So we see a growing percentage of customers adopting multiple products, and we see that increasingly with our new customers, who in their first month are taking on or have more awareness of the broader set of financial tools that we offer and are taking on our products in a quicker way. And that's particularly true as we started to ramp our paid marketing, which, again, we'll continue to lean into in 2021. So it's that increasing adoption that enables a more robust and diverse business model for Cash App too. We had one revenue stream with more than $100 million in gross profit in 2019 and in 2020, we had 4, all of which grew at over 100% year-over-year.

It's incredibly helpful data points. And so just thinking about what that kind of attach can be and what that can drive in our ARPU, I think, is pretty notable. I think before moving over to Seller, just given the number of questions we've gotten on this in the last week since some of these -- since the announcements, if you could just touch on the recent announcement last week of the acquisition of TIDAL, might be a little bit more correlated to Cash App than Seller, which is why we positioned it here. But if you can just walk us through the strategic rationale opportunity here?

Sure. We're excited to be acquiring a majority stake in TIDAL. It furthers our purpose of economic empowerment now in the creator economy against the backdrop of a creator marketplace. So the opportunity we see with TIDAL is to enter a new vertical: music. It has a unique structure with artists as owners and a unique focus on both artists and fans. We see artists as a vertical as being underserved. And we want to provide them with tools that help them grow and that help them create new revenue streams for themselves. So we intend to invest here over a multiyear horizon. The -- from a transaction deal size and financial standpoint, it's a mix of cash and stock across $297 million to acquire that significant majority stake. Jay-Z will be joining our Board, and all other artist shareholders will continue to be owners post close, which we felt was a really important dynamic in this deal to align our incentives. And from a financial standpoint, the upfront price is a relatively small percent of our market cap. It doesn't preclude all the amazing ways we're going to invest into Cash App and into Seller, which we've been talking about and we'll talk about on Seller. But it provides us that option value to explore this new adjacency. We don't expect it to be material in 2021 from a revenue and gross profit standpoint, and we can share more on the expected impact to our P&L after we close.

That's helpful. Just in interest of time, maybe we should shift to Seller, which is an area that we've obviously been very excited about in terms of transition and omnichannel opportunities that we're seeing you guys really execute on. But when we look at just so much of Square's Seller base are small merchants that are in end markets that are historically relied on largely physical POS spend. It was clearly -- I think a big question during the pandemic how you guys would fare, and it's -- I think you came through outperforming, I think, on almost anybody's expectations. So starting off just on the macro side, from your perspective, I mean, if you can give us a sense of how you see the health of the broader SMB and micro-merchant market looking? How are you thinking about the impact of current growth trends and any impact going forward from further restrictions and reopenings will be helpful.

Sure. During this time, well, we've seen strong growth in our online channels as sellers have adapted to the new normal. We still see some puts and takes around growth trends depending on shelter-in-place restrictions, right? As restrictions ease, we've seen improvements in gross profit retention and overall GPV growth in specific markets and regions. Retention was down approximately 10% year-over-year on a gross profit basis in the back half of 2020, improving from the trough at down 30% in the last Q2. We believe this shows that sellers have adapted and are still constrained though in their ability to operate at a more normalized scale. So what does that look like in our business today? As we mentioned at earnings through the first 3 weeks of February, Seller GPV growth rates were a positive 2% year-over-year, impacted by the mid-month storms in the U.S. Particularly, we saw impact in Texas, obviously. We ended February in line with January though, GPV, positive 5% year-over-year as we saw recovery in trends in late February and improving into the first week of March.

That's great to hear. Good. I think if you look at the online and omnichannel side, look, that's an area that I think you know we were very excited about as we were seeing the trends develop throughout last year, and it's been driving strong growth during the pandemic. You mentioned over 50% of volumes are now online on omnichannel sellers. So just touch on what differentiates Square omnichannels, your company's omnichannel approach during COVID? And where does that mix and growth of online and omni go from here? Again, it's an area that we were very constructive on last year, seeing it pivot so successfully, but it's been going on for a while for you guys.

Sure. Yes. Omnichannel and online offerings for us, we think, are differentiated by the breadth of the ecosystem and the diverse range of verticals that we serve and the diverse range of use cases that we enable. Our online channels encompassed really a range of use cases for sellers across Square Online, which is a full website; Square Checkout, which is lighter weight links; Invoices, virtual terminal, our developer platform, which provides EPIs that can be more crafted to more specific use cases; and our app marketplace. We've seen continued strength in GPV from online channels, sustaining growth of more than 50%, as you said, on a year-over-year basis over the past 2 years, with certain parts growing faster and increasingly becoming a front door into Square. So when you include the online channels with our in-person tools and services, that's where you see the power of omnichannel. And it's these offerings that helped our sellers pivot during the pandemic, with now more than 50% of our GPV coming from omnichannel sellers in the fourth quarter. Some examples by vertical might be helpful in illustrating sort of how we helped sellers create new experiences for their buyers. When you look at restaurants, most restaurants were previously in-person dining only. We launched on-demand and seller-powered delivery. We launched QR codes. We launched a kitchen display system, which cohesively integrates orders placed in-person, online and through delivery apps to broaden that omnichannel capability for a restaurant. When you look at retail, we've seen in-person sellers transition to reaching customers with Square Online to further expanding their fulfillment capabilities, with our acquisition of Stitch Labs more recently. And we also launched our Square for Retail vertical point of sale in 3 new markets outside the U.S. in the past year. And then when you look at services, strong growth in Invoices and Appointments to collect payments remotely, to manage time, including in verticals where we haven't previously seen their use, showing the importance of that broad set of products that sellers can use as they hustle in these dynamic times. So we see omnichannel as a long-term trend that's been accelerated by COVID and believe many of these new norms will continue post.

The mix, though, I mean, again, you guys were at a level that obviously was extremely powerful, but also somewhat because of the mix in just macro-wise, how many people are out in the market versus online. In terms of what you're seeing, consumer behaviors and what your capabilities are, I mean, do you expect that mix to be elevated still from an omni standpoint? And maybe any broad sense of directionally where you think it could be?

Sure. When we think about new customers and kind of what they look like, what the mix looks like, first, we saw a strong acquisition in 2020. Despite or maybe even because of COVID, we onboarded our largest cohort of new sellers on a gross profit basis in 2020. That mix indexed to larger and mid-market sellers, most transitioning from legacy systems. And when you look quarter by quarter, each of our quarterly cohorts in 2020 paced at or near our largest on both the gross profit and a GPV basis. So we really see that COVID created a catalyst for understanding the power of a cloud-based platform of products that work together and are fast to onboard, that enable that adaptive ability to reach your buyer wherever they are. So many new sellers are joining Square for those omnichannel capabilities and are adopting more omnichannel products. For Square Online, which I mentioned earlier, we've seen 1 in 2 of the sign-ups who are new to Square Online were net new to Square in Q4 and in January, meaning that Square Online is now becoming [ becoming the core ] of our broader ecosystem. Another example of that is Invoices, which also served as the front door, with a healthy mix of net new in that product, driving Invoices' gross profit growth of 40% year-over-year to over $100 million in gross profit in 2020. And we see strong acquisition across our largest verticals, particularly food and drink and retail. And when we look ahead, we expect future cohorts to continue to index to larger sellers in omnichannel and online products, particularly as we invest in marketing that tells that broader story of the jobs we can do to solve our sellers' needs and as we invest in our sales team to manage both inbound and outbound for larger sellers.

That's really helpful. I mean, I think the large Seller was notable. The momentum there was very notable last quarter and really several quarters. But GPV, up I think it was 14% in fourth quarter. So what really is working there? And if you can give us a sense of what's driving momentum upmarket on your go-to-market strategy for the larger sellers going forward?

Yes. We've seen good traction here, moving upmarket in the fourth quarter, gross profit from mid-market sellers who we classify as sellers who have more than $0.5 million in annualized GPV. Gross profit from those sellers grew 27% year-over-year, which was up 2x versus the overall Seller business. And we again, see ecosystem is a differentiator here. Mid-market sellers use 2.5 of our products on average to manage inventory, employees use and create our custom developer integrations. And we're still early. We're less than 1% penetrated of that larger Seller opportunity, which we see representing $5 trillion to $6 trillion of volume. So there's a significant opportunity here to invest, to acquire larger sellers away from legacy platforms. And we'll do that this year by growing seller sales and marketing by 45% year-over-year across various go-to-market efforts. First, obviously, awareness and brand marketing, where we're driving awareness of the broader ecosystem of products that Seller has. And secondly, our sales team, as we've noted, we're doubling the size of the sales team to focus -- to give us the ability to focus more on outbound sales. We want to increase the percentage of mid-market Seller GPV engaged by our sales team, which was 40% in Q4. And that sales team really helps with the cross-sell at onboarding, particularly around software products. That has helped historically drive efficient paybacks for the sales team of 5 quarters. So when we look across the investments we've made so far in 2019 and 2020, we see those investments in sales and marketing pacing at less than a 5-quarter payback for pre-COVID cohorts and have sustained a 3x ROI over 3 years. And again, those are dynamics that we want to invest into.

Yes. That makes a lot of sense. Why don't we take -- I'm going to give you one more question and then there's -- I see a dozen questions already from the audience. And so we'll take -- we'll leave a little time for that as well. Just Square Financial Services. I mean, the announcement, I think it was, what, 2 weeks ago or so that you've opened the bank. And if you could just give us some more color on the significance around that now, strategic rationale, what it really means for the business, that will be helpful.

Sure. Yes, we're excited to bring our banking capabilities in-house. This will allow us to operate with more speed and flexibility while also maintaining a close relationship, obviously, with regulators. At the onset, we'll be transitioning the core Flex Loan product, our Square capital product in the U.S. to the bank. And we'll continue to sell those loans to third-party investors, the same approach of limiting balance sheet exposure. And in 2021, we don't anticipate this having a material impact to the financials. But when we think more broadly about what we're doing here, we see a really compelling opportunity to serve our sellers and particularly those smaller sellers with deeper financial services. During COVID, we saw sellers, smaller sellers, in particular, appreciate Square's ability to help them access capital and manage their finances. Through the PPP program, we helped simplify the process. We expanded access by reaching smaller sellers with an average of an $11,000 loan size across the over $1 billion we've now sent out through the PPP program to small sellers. That's -- that $11,000 loan size is 1/10 the size of the average SBA loan size. And we've seen strong adoption of Square Card during COVID, where Square Card sellers have higher engagement. And they're spending 1/3 of their GPV as of the third quarter in 2020 through their Square Card. So as we think about the future opportunities here, we want to focus on bundling more of these financial services into attractive, compelling bundles for our sellers. And the bank will enable that greater innovation and flexibility on our roadmap.

It's interesting. And I see there's a number of questions, but one of them is actually about the ILC or the banking side related to Cash App's success. And I know this is really more focused on the Seller side in terms of your banking initiatives, at least right now, but if you could just touch on the importance at all of banking or the ILC to the Cash App side even down the road? Is that going to be something that helps? You don't seem to really need it, given the inbound store balance is coming in, in many other ways. But I'm curious, any thoughts on potential [ reverbs ]?

Yes. No, I think there's opportunity down the road. Today, obviously, we're focused on ramping the bank. It's sort of day one for us. We announced it last Monday, and we are focused on the ramp of our capital loan program through the bank. As you think about how the bank could grow, certainly, there are implications and applicability across our ecosystem of products, whether it's additional financial services for Square sellers or its potential financial services for individuals through Cash App. We see applicability potentially across the ecosystem, but we want to do that in a deliberate way as we ramp the capabilities of the bank. And so that's why we remain focused today on the core Flex Loan opportunity.

Okay. That's helpful. So let me take a few more, if you don't mind, we have just about 4 or 5 minutes. Long term, where could ARPU top out in the context of what some of the private neo banks have disclosed? Sounds like there's a long runway, but any further color you can share?

Yes. We do think that there is a long runway and big opportunity ahead of us. As I discussed, I think there's near-term correlation to broader macroeconomic trends and spending power of our customers related to employment or unemployment related to stimulus and otherwise. Longer term, we see a vast opportunity, frankly, to grow our business and to grow ARPU. And we can do that through greater product adoption. We can do that through launching more products, and we can do that through accessing new demographics of customers beyond our sort of where we've indexed today, which is the underserved. So we have an opportunity. As we have with the Seller business to move upmarket, we see that opportunity with the Cash App business. And the other thing that I'd point out that I didn't mention earlier is that as we look at inflows and the dynamics of inflows and our take rate, if you will, on those inflows, the dollars that come into Cash App and how we then monetize those dollars over time. We not only have more ways to monetize now with 4 products at scale, over $100 million in gross profit in 2020, more ways than we've had in the past. But it used to be that we would monetize only when dollars moved out of the ecosystem through Instant Deposit or Cash Card. We now have ways to monetize when dollars stay in the ecosystem through Cash for Business and through Bitcoin. And so you can imagine, as we launch more products, that there'll be more ways to monetize the same dollar of inflow over time. And I think that's a powerful longer-term trend for us as well.

That's helpful. We actually have 2 different questions that touch on the same topic, so I'll group them. But is buy now pay later something Square's explored or could explore in the future? And then a related question is for Cash App new features, do you have plans to get into buy now pay later there as well?

Yes. I mean, we think about what is the fundamental need that you're addressing? What is the problem you're solving for your customer? And from a consumer standpoint, it's being able to access cash flow in measured and disciplined ways outside of the guise of a credit card. And we think that there are multiple potential approaches to this, whether in the Seller ecosystem and the Cash App ecosystem. We have a small product in beta right now called Cash App Borrow, which is addressing cash flow needs for a customer outside of just one potential purchase. Maybe the cash flow is needed across a couple of different purchases. We're still iterating and experimenting. It's still very early days in that beta, and we want to understand how that interacts with other products in our ecosystem. But we certainly see a need here, and it's one that we want to find a way to really address the root of the problem through our ecosystems.

Okay. All right. Let's just take maybe 1 or 2 more quick ones. I mean, somebody is just trying to follow-up on the TIDAL acquisition. And just if you can explain, is there any ecosystem bit for Square? In other words, just synergies, they're wondering about. Or is it really more of an investment, strategic investment in an area that the company thinks there's an opportunity?

Yes. The way we've approached it, each of our businesses, whether Cash App or Seller or TIDAL is that they are compelling businesses in and of themselves. They become even more compelling and even more powerful when you see the flywheel working. And we believe that there are ways that we can connect our ecosystems, whether it's Cash App and Seller, which we've talked about in the past, where we believe there's opportunities when you see both sides of the counter, a buyer and a seller. And those opportunities become all the more profound as you increase your density, as you see more of the same transactions. And that's why we're so focused on customer acquisition in both Cash App and Seller today. And then when you add TIDAL to the mix, it is another way potentially to access customers, but it's not one that we're reliant on. We're not reliant on those connections in a Cash App or in the Seller for TIDAL to be interesting in and of itself. So that's kind of the philosophy or the approach that we take as we build out our businesses within Square.

Why don't we take one last one? And it has to do with Cash for Business. Somebody is just asking, if you see an area to further the cause or invest further into Cash for Business as a flywheel or an ecosystem effect has been showing up well?

Absolutely. For us, it's about understanding the use cases, some of which have been motivated by our new virtual world that we live in, whether it's entertainers who now have need to interact with their fans virtually, which obviously has some TIDAL implications and connections as well. Or if you're a place of worship, where you can't go in person on a weekly basis, and you need to donate virtually. Or it's your local shop that has now seen critical mass in terms of their customers who have Cash App digital wallets. So we see an opportunity across a variety of use cases. Some of these norms will continue post-COVID, and we actually want to invest into that to continue to grow this product.

That makes sense. Amrita, I going to stop there. We're out of time, but thank you so much for joining us. Really great to have you as always. It's again, an area we're very focused on in terms of the research, Square overall. So stay safe, and thanks again. Everyone, the next one up is Jack Henry's CEO at starting, I think, in just 4 minutes. So Amrita, thanks again. Be well.

You the same.