Timothy Chiodo: Perfect. Thank you, Mike. And sticking with – I appreciate that that’s more than there. And sticking with the theme of keeping it more to current quarter and numbers, just a quick clarifier, I apologize if I missed this. But on the Cash App portion of the contract extending 1 additional year through June 2028, did that come with any incremental pricing concessions on the Cash App side or was that sort of same as before when we talked a few months back?
Simon Khalaf: Hey, Tim, it’s Simon. There was no further concessions. So it’s the exact same term.
Mike Milotich: Sorry. The only thing is just the change that we made is we’re now are going to be applying the Square volumes together with Cash App to flow through those years. So it’s – so there will be, I guess, some sort of indirect benefit to Cash App over time. But the bulk of the impact is really for the benefit of the Square debit card.
Operator: Thank you. Our next question comes from the line of Darrin Peller with Wolfe Research. Please proceed with your question.
Darrin Peller: Hey, guys. Thanks. Maybe if we could hone in on the couple of the categories that you’ve seen some really good newer growth in. And so whether it’s early wage access, or the newer part of BNPL just helping provide access to merchants that don’t otherwise take your Debit Plus, etcetera. I guess, first of all, just how much has that really been contributing overall now to the numbers? And then really as an add-on to that, I mean, I don’t think I heard the bookings – any bookings commentary around this time around the way we did last couple. So maybe just some comments on what we’re seeing right now in terms of – you had strong bookings the last couple of quarters, I know, has that continued in I guess, what categories? Thanks, guys.
Mike Milotich: Thanks, Darrin. So I’ll take the first one, and then I’ll pass it over to Simon to talk about bookings. So in terms of the newer use cases that we’re saying, particularly the accelerated wage access and sort of the new I guess, consumer-focused BNPL offerings. I would say they are still relatively small but are being fast enough to make a difference. So like on accelerated wage access, for example, as I mentioned, the financial services vertical is by far our largest, over half of our TPV, and we did have a tougher comp there that we had to lap, but that was mostly offset that drag we got from the tougher comp was mostly offset by the rapid growth of the accelerated wage access use case just comparing Q3 to Q2.
It was up 2x. So it’s still relatively small but growing fast enough to at least offset some slowdown we’re seeing in our largest part of the business in financial services. And then in buy now pay later, again, it’s growing really fast. It’s now just under 10% of our BNPL TPV. So it’s still relatively small. But again, that 10% has happened just in the last few quarters. So it’s growing really fast. And so it’s getting, but it will be probably more meaningful both use cases in the next several quarters.
Simon Khalaf: On the bookings side, the trend that started, I’d say, late in 2024, Q4 – sorry, in ‘22 has continued. So it was a strong quarter, and I’ll give you some stats kind of 60% was in North America, about 40% outside the U.S. It was actually even 50-50 between expansions and new program. And the other interesting thing is about 20% of the deals were actually flip deals. So wins from the competition. So all in all, like I’d say, since October 2022 to date, we’ve seen very strong bookings.
Darrin Peller: That’s great to hear. And just one quick follow-up would be around anything you’re seeing weakness in. So some of the subverticals, mostly macroeconomically, I guess, is really the question. I mean we’re thinking expense management as a category where we’ve seen some cracks in. So just as an example. But anything you’re seeing that’s worth calling out for us to keep an eye on?
Mike Milotich: Yes. I would say, yes, the only thing we’re seeing when we look at – and I know several of our payment peers have talked about this, in October, our TPV growth was like a little bit slower than Q3 and in September, not a lot, but a little bit. And we’re seeing it across – we typically break in all the spend categories into sort of high, medium and low discretionary, like how much of it is really discretionary, and we’re seeing it slow across all three. So it’s not in a particular area it’s pretty broad-based. But what I would say, Darrin, is like when you look at our TPV monthly growth since March, so that’s about 7 months. We’ve been moving within about a 5-point band. So it’s been pretty tight, and we go – we’ve gone up 3x sequentially.
We’ve gone down 4x. So it’s kind of been bouncing around in a pretty tight band. So what we’re seeing in October is really just a continuation of the trends we’ve seen before. There is nothing that really concerns us at this point. But obviously, we’re monitoring it closely.
Darrin Peller: Alright. Very helpful, guys. Thank you.
Operator: Thank you. Our next question comes from the line of Ramsey El-Assal with Barclays. Please proceed with your question.
Ramsey El-Assal: Hi. Thanks for taking my question and terrific results this evening. I wanted to follow-up on Darrin’s question and ask about kind of trends you are seeing or updated thinking on bookings conversion. Are you starting to see some of the sort of bookings momentum that you have experienced flow through to revenues? Should we expect – what should we expect in terms of conversion trends going forward?
Mike Milotich: Thanks Ramsey for the question. Usually, I would say it usually takes about 18 months for deals to start contributing materially to revenue. Usually, it’s 6 months to 12 months to launch, and 12 months to fully ramp. So, we are starting to see the launch, but I would say it won’t be until the tail end of 2024 and 2025, in which we will see the material impact of the new deals that we started closing in Q4 2022. I mean we are all focused on delivery and we have made great progress, especially separating commercial from consumer because commercial moves a little bit faster. But I would stick to – it will be tail end of 2023 – sorry, ‘24 and ‘25 before we see the material impact. And then we will discuss this a lot more kind of the formula and kind of the process at Investor Day. We have got a lengthy section on that because we understand that everybody is expecting to see how and when the bookings will convert into gross profit.
Ramsey El-Assal: Got it. Okay. And one follow-up for me. You mentioned a rapid ramp of accelerated wage access, and that is not an opportunity that candidly, I thought of in the context of Marqeta had before, I am not sure why not. But maybe you could talk a little bit about that broader opportunity and the degree to which that could turn into a material sort for flow you guys?
