Block, Inc. Q2 FY2020 Earnings Call

· Earnings call transcript and AI-powered summary

  • Gross Profit: $597 million, up 28% YoY; excluding Caviar, up 32% YoY.
  • Net Loss: $11 million.
  • Adjusted EBITDA: $98 million.
  • Operating Segments: Newly split into Seller and Cash App for reporting starting Q2 2020.

Cash App Segment Highlights

  • Gross Profit: $281 million, up 167% YoY.
  • Monthly Active Customers: Over 30 million in June 2020, up ~25% in six months.
  • Engagement: Customers transacted more than 15 times per month on average, up 50% YoY.
  • Cash Card: 7 million monthly actives in June, doubled YoY. Cash Card spending up 50% QoQ despite industry declines.
  • Stimulus Impact: Significant positive uplift in inflows and engagement due to CARES Act payments, unemployment benefits, and tax refunds.
  • July Outlook: Expected Cash App gross profit growth of over 200% YoY vs 100% in Q1 2020.

Seller Segment Highlights

  • Gross Profit: $317 million, down 9% YoY due to COVID impacts.
  • Seller GPV Trends: Sequential monthly improvement from April to July. July GPV up 5% YoY.

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Jason Lee: Hi, everyone. Thanks for joining our second quarter 2020 earnings call. We have Jack and Amrita with us today. We'll begin this call with some short remarks before opening the call directly to your questions. During Q&A, we will take questions from our customers in addition to questions from conference call participants. We would also like to remind everyone that we will be making forward-looking statements on this call. Actual results could differ materially from those contemplated by our forward-looking statements, and reported results should not be considered as an indication of future performance. Please take a look at our filings with the SEC for a discussion of the factors that could cause the results to differ. 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. During this call, we will provide preliminary gross profit growth results is for the month of July. These represent our current estimate for July performance as we have not yet closed our accounting financials for the month of July, and our monthly results are not subject to interim review by our auditors. As a result, actual July results may differ from these estimates. Also, we will be discussing certain non-GAAP financial measures during this call. Reconciliations to the most directly comparable GAAP financial measures are provided in

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