Square, Inc. (NYSE:SQ) Q3 2018 Earnings Conference Call Transcript

Nov 07, 2018 • 05:00 pm ET

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Square, Inc. (NYSE:SQ) Q3 2018 Earnings Conference Call Transcript

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Presentation
Operator
Operator

Good day, ladies and gentlemen, and welcome to the Square Third Quarter 2018 Earnings Conference Call. I would now like to turn the call over to your host, Jason Lee, Head of IR. Please go ahead.

Executive
Jason Lee

Hi, everyone. Thanks for joining our third quarter 2018 earnings call. We have Jack and Sarah with us today.

First, we want to remind everyone of the format of our earnings call. We have published a shareholder letter on our IR website, which was available shortly after the market closed. We will begin this call with some short prepared remarks before opening the call directly to your questions. During Q&A, we will take questions from our sellers in addition to questions from conference call participants.

(Forward-Looking Cautionary Statements) Also, during this call, we will discuss certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP financial measures are provided in the shareholder letter on our IR website. These non-GAAP measures are not intended to be a substitute for our GAAP results. Finally, this call in its entirety is being audio webcast in our IR website. An audio replay of this call will be available on our website shortly. With that, I'd like to turn it over to Jack.

Executive
Jack Dorsey

Good afternoon, everyone. We're going to try something a little bit different here. Instead of reading you prepared remarks to start the call and the conversation, Sarah and I are going to go through a list of the highlights that we've seen throughout the quarter that we wanted to bring to your attention.

So I wanted to start with why we're here as a company. Our purpose is to empower people into the economy, enable them to participate in a way that they haven't been able to in the past. The way we do this is by focusing most of our efforts on helping sellers make a sale and ideally helping them make more sales. One of the things that we have done extremely well is increase the access to sellers in the first place. A number of sellers and individuals could not even participate, could not get on the financial networks and, therefore, could not participate in the economy.

This leads into one of the biggest highlights for the quarter for us, which was the launch of Square Terminal. We have seen these black rectangular boxes on countertops everywhere around the world. This is the common device that people use to accept a credit card and make a sale in the first place.

We answered it originally by enabling people to take their mobile personal device, like an iPhone or an Android device or an iPad, and plug in one of our readers or pair it wirelessly. We decided that we could do better and serve an entirely new market by building an all-in-one device that doesn't require a third-party tool and enables people to sell in the way that they are used to. We built this with a touchscreen, we built this with a