How Square makes Money

• Square is a financial services and mobile payments company that sells a
broad range of products, including point-of-sale hardware and software.

• Square's primary products are: a point-of-sale hardware system;
software for payments processing and analytics; Square Card, a free
business debit card; and Cash App, a peer-to-peer (P2P) payment service
and Bitcoin sales.

• Square faces a broad array of small and large competitors such as
business software companies, payroll processors, payment terminal
vendors, and banks.

• Four years after going public in 2015, Square posted its first annual profit
in FY 2019, reporting $375.5 million in net income compared to a $38.5
million loss a year earlier. Those profits were fueled by soaring net
revenue, up 42.9% year-over-year (YOY) to $4.7 billion.

• Bitcoin was Square's fastest-growing category and made up 11.0% of
Square's revenue in 2019 and Bitcoin revenue soared 210.2% to $516.5
million.

• In FY 2019, Square generated $1.0 billion in subscription and service
based revenue, up 74.3% YOY and it accounted for nearly 22% of the
annual revenue.

• In FY 2019, transaction fees accounted for $3.1 billion in revenue, up
24.7% YOY. Although transaction-based revenue was one of its slowest
growing categories, it represented by far the largest share of net
revenue, about 65%.

• On March 24, Square lowered its guidance for Q1 growth in revenue and
gross profit due the coronavirus pandemic and revised its net revenue
and gross profit expectations to between $1.30 and $1.34 billion and
between $515 to $525 million, respectively.

KC
(signing off....)