Block, Inc. (NYSE:SQ) Q1 2024 Earnings Call Transcript

Amrita Ahuja: Sure. I can start on this, which is we saw strong growth in the quarter, as you noted, both from a GMV perspective, and even more so from a gross profit perspective, GMV being similar to our Q4 growth rate at 25%, but with gross profit at 32%, which is higher than the fourth quarter growth rate. What we saw with Afterpay was strong customer acquisition across both consumers and merchants with growth driven by single-use payments and our gift cards offering. Single lease payments is our product that allows customers across the U.K., U.S. and Australia to shop via the Afterpay app at merchants that aren’t in Afterpay’s network, so a broad set of merchants, and that enables us to reach highly engaged customers through personalized merchant recommendations in the app while also offering a flexible payment offering.

And gift card is a product that allows eligible customers to purchase an online gift card from a variety of leading retailers and then spread it out across four payments with Afterpay. Afterpay’s enterprise sales team also has been driving a strong pipeline of new merchant growth across all of these products, our core Buy Now, Pay Later products as well as some of these newer products. Some of these newer products also do have improved monetization rate relative to Buy Now, Pay Later. And that, I think, is what – some of what you’re seeing come through in terms of the stronger gross profit growth. Stepping back more broadly to the first part of your question, what’s changed here is, as Jack noted, we’ve reset on our strategy and reorganized our team.

Afterpay is now fully embedded in the Cash App ecosystem and operating at a high level of excellence between our sales team, our product-led teams and our customer-facing teams. And so we’re excited to see what’s ahead, not only for some of the standalone Afterpay initiatives, but also the deeper integrations that we’re doing with Afterpay on Cash App Card and with Cash App Pay, which is now the strong growth of which I think is very much attributable to the Afterpay team as well.

Brian Keane: Got it. Thanks so much.

Operator: And ladies and gentlemen, thank you for participating in today’s program. This does conclude our program, and you may all now disconnect.