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

Okay. We are going to get started now. Thank you, everyone, for being here. I'm Will Nance. I cover payments here at Goldman Sachs. We're delighted to have Amrita, CFO and COO of Block. Amrita, thanks for joining us. I'm going to run through some quick disclosures, and then I'm looking forward to the conversation.

Thank you so much for having me, Will.

Okay. So during this conversation, Amrita may make forward-looking statements, including about Block's expectations towards financial performance that are subject to risks and uncertainties. She may also speak as to certain non-GAAP metrics. Please take a look at Block'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 measures. Further, any discussion of our lending and banking products or further products referred to products that are offered through Square Financial Services or our bank partners. With that, Amrita, thanks for joining us today.

Thank you for having me. And also just thanks for dealing with my voice. Hopefully, we may get through the whole session. I'm in the process of losing it. Let's go for it.

All right. We'll see what we can do here. All right. So kicking off, 2Q was a busy quarter and in our view, one of the strongest quarters in recent memory for Block. Over the past 2 years, we've been on this journey, that in my mind, started with some of your restructuring announcements and over successive quarters, you, Jack and the team outlined very specific strategies across every segment of the business, where you were focused on investing, including both on products and strategy as well as profitability and financial targets. And this quarter, it felt like we really began to see some of the progress show up in the results, particularly on the Square side. So to kick off the presentation, I was wondering if you could maybe do a state of the union around the investments over the last 18 months, what has worked and where there's still work to be done?

Great. Will, I think your question laid out the long term very well, and I'll come back to that, but I'll start with the short term, which is that we sit here today very confident in our ability to deliver on the guidance that we provided for the back half of the year to accelerate our gross -- on gross profit growth in both Q3 and Q4 and to exit the year in Q4 with 19% growth and 20% adjusted operating income margin. And since we gave that guidance a month ago, we've gotten questions about risk loss given the ramping of our Cash App Borrow product, in particular, even if you look at gross profit net of risk loss, we expect to accelerate our growth in the back half of this year, so both on an as-reported basis and net of risk loss. Now turning to the longer term, which is really the genesis of your question. There's really 2 key things that we've changed that are fundamental to how our operating model and how we run as a business. One is our functional organizational structure and two, is how we orient our work and our priorities. So first, we used to be a business unit-oriented structure, we are now a functional oriented organizational structure, which means that we've elevated disciplined excellence around engineering and design, which means that we can flex our workforce across the most high-priority projects, whatever brand they happen to be on, and which means we can connect the dots across our various brands from Cash App to Square to Afterpay, to TIDAL to Proto. So it gives us organizational excellence and adaptability. The second thing is that we have road mapped Block's priorities as a whole and stack ranked each of our initiatives that ladder up to our overall strategy. So we focused our strategy, and we created clarity around prioritization of the initiatives that ladder up to the strategy. What each of these 2 things has done organizationally and culturally over the past year is it's led to greater product velocity. And that's what you see us delivering now so far in 2025 and what you should hold us accountable to as you look at the back half of this year and into next year. Just in Q2 alone, from a Square perspective, we launched Square AI, our latest Handheld and sometimes Square -- our latest hardware, I should say, in some time, Square Handheld. And we released new transformational features for Square Online. From a Cash App perspective, we went in 4 months from inception to prototyping to launch on Cash App Pools, which is our newest peer-to-peer future within Cash App and launched Tap to pay for Cash for Business. So the product velocity that you see across our business should be accelerating on the back of our organizational and prioritization efforts. And it's not just about product velocity. It's also about distribution. You'll see us do more as we invest behind strong returns. And as we experiment in new ways across our brand and performance marketing campaigns across the business. And it's this product velocity and distribution, which ultimately compounds to share gains and growth over time.

That's great. And I appreciate the update. I know there's been a lot of focus, but it sounds like things are truly accelerating the business kind of across the board. Before we go any deeper, I did want to touch on the current environment. I know everyone is eager to hear about what your data says about the state of the consumer. Is there any real-time insight you can provide on just the performance of the business, the health of the customer base? And just remind us what you're expecting in the back half of the year from a macro perspective?

Sure. From a macro perspective, obviously, we're very watchful and we did embed in our guidance that acknowledgment of the dynamism of the backdrop of the environment in which we operate. But what we've seen is resilience across our ecosystems. Through Q2, from a Square perspective, we saw acceleration from Q1 into Q2 on Square GPV, 7% to 10%. And importantly, in some of those key discretionary verticals that we look at, food and beverage and retail, we saw resilience as well with strong same-store growth and retention behind each of those 2 verticals. From a cash out perspective, we look at things like inflows per active and card spend. And we saw inflows per active be relatively steady from Q1 to Q2 at 8% year-over-year growth, but actually accelerating if you look at -- and we've talked about this before, some of the moderation in growth that we saw in Feb and March, we accelerated out of that into Q2 around inflows per active. Importantly, when we look at other key drivers of our business. So our underwriting models, repayment around loans like Square Loans, Cash App Borrow or BNPL, we've seen steady and healthy repayment rates. And for the investments that we make from a go-to-market perspective, we've seen strong returns on our marketing and sales investments behind our business. Now again, we have real-time data that we are managing our business behind. And so to the extent we see anything shift around repayment rate or ROIs from an investment perspective, we have the ability to shift things to protect our business and obviously continue to serve our customers responsibly.

Yes. That's great. So let's double click on the GPV trends in seller, particularly in the mid-market and the food and beverage because I think about those 2 categories specifically is an area where distribution really matters. And I know distribution has been a huge focus for the company across field sales and across resell arrangements, both here and abroad. When you look at the improved performance, what are the signals you're getting from the market that are leading you to guide to continued acceleration in the back half? And can you speak to the contribution from some of the new channels that you have?

Sure. So just philosophically, when you step back, the approach that we're taking that's different this year, really over the past sort of 12 months or so is to expand and broaden the ways in which we go to market for the Square business, which puts us in front of incrementally new sellers, a broader set of sellers than we were reaching before. And this product velocity behind our ecosystem gives us a chance to win more of those sellers, which leads to share gains and again, leads to compounding growth. So there's 3 key drivers of Square GPV: new customer acquisition; seller retention; and churn. And we've seen healthy and accelerating growth from a customer acquisition standpoint and across really the 3 key metrics. From a customer acquisition standpoint, what we saw in Q2 was the strongest dollar-based new volume added that we've ever had as a company as we attracted more sellers into our ecosystem and the highest growth rate we've seen since 2021. From a sales perspective, specifically within new volume added, just looking at the sales channel, the first half of the year, we saw 20%-plus growth rates, and we expect to exit the year at 40%-plus growth rates. Now it's still a smaller portion of overall new volume added relative to our truly differentiated strength, which is self-onboard, but it's one that we're leaning into as we see strong marginal returns across our sales force, from telesales to field sales. Partnerships is another key piece of our sales ecosystem we're delivering higher leads, larger leads and above our targets into that sales team. So we're seeing strong conversion of those leads, when our sales team engages with them. And then from a retention perspective, we're seeing, to your point, some of the key verticals for us, food and beverage and retail, strong retention, both on the back of the investments we've made from a product standpoint so that we can gain greater share of [ wallet ] [indiscernible] and also from a macro perspective. And from a churn perspective, we saw in Q2, the lowest churn that we've seen since mid-2023. So we're pretty encouraged about those 3 key drivers of our GPV growth rate and ability to accelerate from here.

Great. One item I did want to ask about that we got some questions on post earnings was, the contract renegotiation you talked about that led to about a 2-point gross profit in the seller business. And I think on our math, it worked out to about $80 million kind of on an annual run rate. Can you help investors understand just the nature of that change in the relationship with your processor. And kind of what you're getting out of this to justify the cost? And do you view this as sort of like an [ NPE ] positive change?

Sure. So first, I would say the changes like this actually happened beneath the surface regularly for a business of the size and scale and magnitude of ours. It's more noticeable. And so we called it out from a Q3 perspective because of the investments that we're making elsewhere in the ecosystem around hardware on the back of the strong launch of Square Handheld and on the back of increased customer acquisition, we're leaning into this really successful and important distribution channel for us with hardware. And so you're going to notice some of that gross profit to GPV differential, which is why we've called out this 1 processing partner piece. What happened purely is that we were holding more than was required from a minimum cash perspective with that processing partner in order to improve our operational flexibility. We brought that cash back from an interest income perspective, but it has a partial offset from a gross profit perspective. Net ROI beneficial to us, both from a flexibility standpoint and from a true economic standpoint with interest income. Ultimately, what we're focused on as we think about gross profit and GPV longer term is driving incremental variable profit dollars into our business. And those are some of the sort of healthy metrics that we're looking at, and we're seeing today is that even as we ramp with larger sellers in the U.S., we see new profit added dollars are actually higher than new volume added dollars, which means we maintain pricing power and the ability to cross-sell our 30-plus products into these -- into the seller base. And those are kind of the true health of the underlying ecosystem. Those are the sorts of metrics that we're most focused on.

Got it. And so just to follow up on that last point you made. Once you lap the headwind, investors have thought about this business as sort of a spread to GPV growth. Is that still the right framework? And do you think that Square will still maintain a positive gross profit spread if your -- the success you've had recently in mid-market and larger sellers continues.

Yes. I mean, look, I think we'll have more to say about this at our Investor Day later this year. I think ultimately, there are some puts and takes to think through. One is that we're going to be growing our business with larger sellers and with sellers in markets outside the U.S. Some of -- those are 2 of our top strategic areas of focus for the Square business, and those are 2 areas where we're seeing outsized growth. 25% GPV growth, 20%-plus GP growth in markets outside the U.S. That is going to come with lower take rate. As long as we're driving incremental variable profit dollars because we're seeing incremental sellers through those channels, we're deliberately making that decision in those trade-offs. It drives incremental profitability into our business. Now the flip side of it is that we see -- as we see larger sellers, as we bring more sellers on to our platform, as we broaden the product offerings that we have, we have the ability to cross-sell more products into these sellers. And so SaaS attached, banking attach should benefit the gross profit in a way where it obviously doesn't -- isn't reflected in GPV. So those are some of the puts and takes as we think about profit relative to GPV, but ultimately guided by the true economics of incremental profit dollars into the business.

Great. And just last 1 on the seller business. So you've been making a lot of investments in distribution. You just shared some of the results of those investments. Where are you in the build-out of things like field sales and partnerships? And what are some of the goalposts as we progress over the next 18 months that we should be looking out on the distribution side?

I think we're still early. I think as -- what we're seeing today is that the marginal investments into our field sales and telesales team is still -- is not diminishing in returns. It's -- they're coming in at the overall blended targets that we have from an ROI perspective, which means that we have a lot more room to run here. I think we're in our early days. I think you'll see us do more. But I also think you'll see us be disciplined to the extent that we see any shift in those returns or any diminishing returns or a need to shift to focus on A or B market over here instead of C or D, we're going to leave ourselves adaptable and nimble to do that. There's really 3 key pieces of the strategy from a distribution perspective. One is sales, which we've talked a lot about. The other is partners where we have had incrementally new partners over the past year than we've had in many years, frankly, whether it's the vertical specific partners like at US Foods or Cisco or SalonCentric or its horizontal partners like a T-Mobile. And where we've just started launching with ISOs, first outside the U.S. and then this year in the U.S. as well. And we're really excited by the leads that we're seeing, the size of the leads and the overall -- on an individual basis, on a per seller basis as well as the overall volume of leads that's leading into our sales team. And then the third key piece, which you'll see more in the coming weeks and months is around the brand refresh for Square, which we're really excited about, and you'll hear more about at Square releases next month.

Great. Looking forward to that. Let's pivot over to Cash App and starting with the Bank to Base strategy. You have seen a noticeable tick up in direct deposit growth year-to-date. I think something like $300,000 year-to-date in July versus $500,000 for the full year of 2024. Hopefully, I got those numbers right. You also shared at earnings that the cohort of customers using Cash App for primary banking services is much larger than the 2,800 of direct deposit -- that you have 2.8 million of direct deposits that you have. So what are you doing to deepen the relationship with customers and drive primacy, and what else can you do to tailor the products to more kind of banking type use cases?

Yes. Well, first, let me say, we're excited about the recent growth that we've seen and have continued to see on paycheck deposit active. There's much more that we can do to drive growth there and drive deeper engagement. But as we talk to our customers, what we saw is that many of our customers, over 40% of them don't earn a traditional wage that comes via ACH roles -- ACH rails. Many of them are independent earners or gig economy workers or have their first job in the neighborhood. And what we see is that many of those customers actually considered us to be their primary bank, but weren't showing up in the paycheck deposit active number. So then we looked across the engagement patterns on our platform, inflows, outflows, transaction movements, themes and patterns around spend behavior. And what we saw was that, effectively, we could consider someone a primary banking active if they were either a paycheck deposit active or they spent at least $500 through Cash App Card or Cash App Pay on our platform. And those customers are about 8 million monthly actives as of the end of Q2, growing 16% year-over-year. And those customers have 3x the ARPU -- over 3x the ARPU of the overall base. The overall base is about $87 on an annualized basis in Q2. For these primary banking actives, it's over $250 in ARPU, and they're transacting effectively on a daily basis within Cash App, 40 transactions in a given month from a spend perspective within Cash App. So they're highly engaged. Cash App is top of wallet, and they really consider us because the overall spend on average is about $900 for customers on their debit cards. We're top of wallet. We're the majority of their debit spend in a given month. So you're going to see us -- now that we've really segmented our customers to truly understand both what they're doing within our platform and how they consider us to be their primary bank. You'll see us do more with this customer base. In terms of providing full suite of banking packages from overdraft protection to ATM, free ATM fees, from savings, the full package of banking benefits that we have for this customer base. It's not just tied to being a paycheck deposit active but also to the spend threshold within Cash App. You'll see us do more with that. You'll also see us do more within the app itself from a design perspective within the Money tab so that people understand the full suite of commerce payment types that we have across Cash App because of the strong ARPU retention and engagement that ultimately we're seeing it's driving within Cash App.

I guess on that, it sounds like that -- with the segmentation work you've done, that is now the primary focus for direct deposits. How do you think about an acquisition strategy for that, just knowing how difficult it is to bring over primary bank relationships. And I guess, have you seen any evolution in your thought process around kind of penetrating the base versus acquiring direct deposit customers?

So we think both are important. We think growing the overall base of active is our top priority from a Cash App perspective. Ultimately, network density, which is the number of connections you have within Cash App, drive stronger retention and stronger lifetime value for customers. So products like peer-to-peer help us build upon that network density within Cash App. Once you're using Cash App regularly at that top of funnel level from a peer-to-peer perspective, we then have a chance to make sure that you're aware through in-app messaging and otherwise of all the other features that we have from investing, to savings, to spending. And so that's how we see people starting at top of funnel from a peer-to-peer instant deposit perspective and then working their way through with this full suite of products that we have. And then once we see the regularity of their inflows and outflows, we have the ability to make them eligible for other products that Cash App Borrow within Cash App.

Yes. No, that makes sense. So maybe we zoom out a bit and talk about the influence framework and MAU growth that you just referenced. I want to talk a little bit about the importance of the overall size of the network. You used the inflows framework to talk about the growth in Cash App. And over the last 18 months, it's been much more of an inflow than a monetization kind of algorithm. Can you talk about how you think about an inflection in MAU growth? And do you see that dense -- or that mix shifting a bit more towards the user growth in the near term?

So Jack and Owen and our full organization are fully focused on Cash App MAU growth, along with Square GPV growth. These are the 2 sort of North Star metrics for us as a business. The 3 key strategies that we're going to deploy to drive growth from an MAU perspective are driving increase -- I'll go through each one, but they're driving network density, they're increasing our spend in high ROI ways across marketing, referrals and incentives and growing with the next generation of customers. So from a network density perspective, this is, again, when we see customers with 4 or more connections with Cash App, we see a step change from a retention perspective and from an ARPU perspective. And so products like Cash App Pools, which is something that 60% of U.S. adults have to do is group their money together for an office gift or for a birthday present or a baby shower. Cash App Pools offers a tremendous opportunity to enhance the overall peer-to-peer network in a way that is unique to our ecosystem and also to do it in a way where we can bring out of network funds in by opening up Cash App for the first time to Apple Pay and Google Pay as a funding mechanism in the Cash App Pools. So we get to both bring more functionality on a peer-to-peer viral network effect driven aspect in Cash App and exposed people who maybe don't have a Cash App yet, aren't using it regularly to increased functionality within the ecosystem. We also launched Tap to Pay on Cash for Business, another way to expose people who don't yet have Cash App to the overall ecosystem. So that's an element around network effects and network density. From a marketing perspective, in July, we launched -- a relaunch, a rebrand of Cash App effectively with our Cash-in campaign, which is both a brand campaign as well as performance marketing tied to specific products to bring visibility to products like Cash App Card with 26 million monthly active and strong spend dynamics, product that we know has a very strong distribution surface against which attach our banking products and products like Borrow and paycheck deposit active. And so -- and referrals and incentives, which are knobs that we are turning on a weekly, daily, monthly basis based on the returns that we're seeing as more customers come into Cash App and as we're able to deepen them in the engagement funnel. And then third, next-gen perspective. Teams is a product, the families offering is a product that we launched some years back and are now going to have renewed focused energy and investment behind. We have 5 million sponsored accounts in Cash App today. And 80% of those accounts are Cash App Card actives, 25% use Cash App Pay. These are high product market fit products for our team customers. And in the coming weeks and next couple of months, you're going to see us do more, both from a product and a marketing perspective with these future spenders and earners of America that we're excited to grow with.

Okay. And then this year, a big topic of conversation has been the ramp in Cash App Borrow. And this is primarily coming from a significant expansion in your geographical reach, coupled with a step-up in economics from using your own bank instead of partners. Where are we in that process? And for those who are less comfortable with the idea of your credit exposure stepping up this much, what can you share about the performance of the loans and the underwriting so far?

Yes. I'll come back to this, but I think it's a very unique product and very differentiated relative to other lending products. First, just to talk about the year, the first half of the year was not about the new states actually, about the TAM expansion, it was more about traditional sort of credit underwriting improvements that improved both from an eligibility standpoint as well as a credit limit standpoint. And through those improvements, we were still able to nearly double our Cash App Borrow origination in the first half of this year. And getting to an $18 billion annualized run rate in Q2 and about $6 million monthly Cash App Borrow active. The back half of the year, is about not only continued credit underwriting improvements, but also launching Cash App Borrow in those 20-plus states that we weren't yet in through the migration of cash App Borrow from a partner bank into our own bank, Square Financial Services. We're super excited about this. We're going to be extremely deliberate and ramp into those new customer cohorts in those 20-plus new states. But what we've seen so far is encouraging, and that's really what drives the acceleration in the back half of the year. Now from a credit underwriting and risk perspective, what's truly unique about this product is it is a cash flow management, working capital type of product. Small dollar loans typically about $100, $150 on average that lasts for less than 4 weeks, $1 turns about 15 to 17x for Cash App Borrow loan in a given year. The annualized net margin on these loans, as you see in our investor presentation, about 24% on a trailing 12-month basis as of Q2. We -- our target is above 20%. These are high ROI, high ROIC loans for us. And there are loans where we have the ability to determine eligibility. So to the extent that we see anything that looks different from a repayment perspective, we have the ability to pause and reevaluate or retrench as we expand these loans in the coming months.

Can we double-click a little bit on the use of the bank subsidiary because it seems like that's a really differentiated competitive advantage for Block overall across both segments. Where else do you see opportunities to lean in there?

We're very excited about the road map ahead for Square Financial Services. Today, the bank has 3 products in it, Square Loans, which is obviously a product we've been operating for 10 years, but about 5 years now within Square Financial Services, Square Savings account and now Cash App Borrow. When you think about the future of the company from a lending acquiring or deposit perspective, SFS will likely have a hand to play. And we also have future optionality even if you think longer term or about 0 to 1 products, products that we don't even have company yet, like stable coins as an example. We have unique capabilities and differentiators. A truly unique asset with SFS that we can bring to bear as we think about all of those things. So SFS, from a strategic perspective, brings us a direct line to our regulators as we think about what's strategic to our business. It brings us the opportunity to be more efficient in how we serve these customers. It brings us the opportunity to bring a number of products that are sitting on a partner stack into our own, which ultimately gives us reliance and resilience if we think about the overall supplier network for Square and for Block.

Great. Okay. Turning to Afterpay. Another detail you shared was the ramp of the postpaid BNPL this quarter. Could you just double-click on what this product is and where you are in the evolution of the combined Cash App and Afterpay offering?

We're really excited about this one. We launched it just in February. So this is the ability, if you're 1 of those 26 million monthly actives in Cash App Borrow, and we've determined you're eligible. So there's only a subset so far, we're still ramping this product. If we determine you're eligible, you can go into your transaction history and retroactively post purchase or pay in for. Let's say, you bought $100 pair of jeans, you can get $75 back that you then pay off over the next 4 weeks. What we have seen so far, just in these really first 6 months of operations is incredibly encouraging. We're able to take the same infrastructure that we built, the same internal credit scoring that we built for Cash App Borrow, which, by the way, if you compare it to traditional credit score, mechanisms like a Vantage Score. We are able to underwrite 38% more customers our internal credit score than a traditional credit score company would do like a Vantage Score at the same loss rates. So we are able to expand access to credit through products like Cash App Borrow or post purchase BNPL and Cash App Card and able to do it responsibly with sustainable economics for us. So with [ retro ], what we've seen is actually in -- I think the latest stats we gave were as of July, 1 million monthly actives and a $2 billion annualized origination rate as of July, which for us from an origination and margin perspective,are well ahead of where Borrow was at a similar point in its life. We're able to learn and compound those benefits the learning across each of the different products that we have. We're really excited with what's to come as we continue to ramp Borrow in the back half of this year. And I think maybe 2026 is where we see even more material benefits from it. And as we think about Cash App Card, revolutionizing it to become a next-gen credit card with transparency and upfront understanding of fees that don't trap our customers in debt spirals.

Great. Okay. One of my favorite Easter eggs in this past quarter's shareholder letter was the disclosure around Cash App commerce volume. And first of all, I think it would be helpful just to remind us what's in that number? And then secondarily, how are you thinking about that as an ongoing disclosure and as a way to measure the health of the Cash App business?

Yes. So commerce is 1 of 4 pillars for Cash App. Peer-to-peer financial services, commerce and Bitcoin. And if you look at the trailing 12-months, we had $183 billion in volume across our commerce pillar with 16% growth year-over-year. This includes things like Cash App Card, Cash up Pay, BNPL, Cash for Business. And in fact, the growth rate is much higher if you exclude Cash for Business. And so the core products that we're investing behind, which enable our customers to manage their cash flows and spend where they see fit, and we are where they want -- where they are, and where they need to be at the point of sale. We're incredibly excited about the commerce growth for Cash App for a couple of reasons. One is, it's the distribution surface into which we will connect our 2 ecosystems. Commerce is the pillar that unites Square and Cash App. And I think you'll see more in the next couple of months around Cash App Local and how we're able to drive incremental demand of Cash App consumers into Square sellers. That's a unique superpower that we've been testing, but we're really excited to bring to pair at far greater scale in the next in the months ahead. The second piece is that commerce is directly connected into financial services. As I spoke about earlier, as we think about those primary banking actives within Cash App, we think that there are unique benefits that we can provide, people who are deeply steeped in our commerce motion through our banking platform, which can then drive further growth in our banking platform. So the growth of 1 pillar begets growth in another pillar.

That's great. In the last couple of minutes, I did want to ask on the Proto initiative. I think you said in the shareholder letter that the guidance includes some contribution from Proto. Could you talk a bit about how much you're expecting that to contribute and how you think about forecasting the sales of that business?

Sure. So we'll have more to share about Proto at Investor Day. What I will say is that, first, we're very excited about this business. We just had a launch event last month where we showcased our mining rigs are going to be truly differentiated relative to what's out in the market today. That's through modularity, where customers can really have a more cost-effective solution by replacing only pieces versus an entire rig as needed. That's through reliability, that's through customer support so that the overall total cost of ownership for these mining rigs, we think, will be truly differentiated relative to what's out in the market today. What is that market today? We size it at as about a $3 billion to $6 billion TAM on an annualized basis for Bitcoin hardware supply. It is very much concentrated in 1 supplier that's based out of China. We -- as we talk to these Bitcoin miners, we see strong demand for differentiation and competition in the space. We already have a customer lined up and aim to -- intend to be shipping those rigs in the back half of this year and which in part contributes to our acceleration in Q4. And we have a long pipeline of pilot customers that we're experimenting with in the next couple of months as well. So we'll have more to share, but we're very excited about Proto.

That's great. Just like a more clerical question. Where will that show up in the P&L as we -- across the 2 segments? Is it cash App or...

In our other segment.

Other segment. Okay. Great. All right. Well, look, I think that's all the time we have, but thank you so much for spending the time. Really appreciate the opportunity to have a conversation.

Thanks, Will.