Square, Inc. (NYSE:SQ) Q4 2019 Earnings Conference Call - Final Transcript

Feb 26, 2020 • 05:00 pm ET

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Square, Inc. (NYSE:SQ) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] Your first question comes from Lisa Ellis with MoffettNathanson. Your line is open.

Analyst
Lisa Ellis

App numbers. Two quick ones on Cash App. First, given the fee pressure in the retail investing industry, what's your monetization strategy for the new equity investing functionality? And then second, what are the biggest benefits you're seeing from the new Cash App design as you've rolled it out in the last few months?

Executive
Jack Dorsey

Thanks, Lisa. I'll start with the second question actually. We did as I mentioned in my remarks, one of the things we did last year was to clarify the navigation. And the goal of this was to increase the discoverability of our other services. The Cash Card, Bitcoin, which is also grouped with investing now and just provide a much more fluid and easy-to-access way to get some of the core functionality. That worked. We did see increased discoverability. And the reason why that's important, ultimately, is the peer-to-peer network has a great reinforcing model in that it grows as people just send and receive money. But as people see new features within the app such as investing, they tend to retain longer and we tend to see a lot of benefit from that usage as well.

So we started just going down that path, there's still potential work to do around the navigation to bring even more forth, but we're really happy with those results. As we've talked about in the past on these calls around any of these features, we have a lot of levers to pull in terms of whether we see them more as acquisition channels or areas for us to drive monetization and profit. We want to be flexible with that. So this is something, as we introduce these new adjacencies, that give people more access to the financial network. We can evolve or change over time. The goal right now is to provide something that not a lot of people have had access to in the past but also learn as much as possible so that we can then make better informed decisions.

Executive
Amrita Ahuja

Just to add to that, Lisa, when we look at products like investing, what we see is very engaged customers who have the opportunity to do lots of things across the ecosystem. And that engagement, in turn, drives broader monetization. So in investing or Bitcoin active tends to generate two to three times the annual revenue compared to other cash customers that we see. And what you think about there is the seven different revenue streams that we have, the multiple ways that we have to add value to our customers and drive that daily utility, which in turn results in seven different revenue streams that we have across Cash App that we can drive people to now that we have greater discoverability and navigation as well.

Analyst
Lisa Ellis

Terrific. Thank you.

Operator
Operator

Your next question comes from Tien-Tsin Huang with JPMorgan. Your line is open.

Analyst
Tien-Tsin Huang

Hi. Thanks for the presentation. I wanted to ask on