Square : Fourth Quarter 2020 Historical Financial Information

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Square, Inc.
Historical financials as of Q4 2020
Blue numbers	Hardcoded historical financials
Shaded grey	Historical financial metrics items that are no longer disclosed in our financials
The information contained in this file speaks only as of the particular date or dates included in the accompanying pages. Square, Inc. (the "Company") does not undertake an obligation to, and disclaims any duty to, update any of the information provided. "
The information contained in this file contains certain financial and other information reproduced or derived from more comprehensive information contained in our quarterly shareholders letters and periodic reports and other filings with the Securities and Exchange Commission (SEC). The information contained in this file is unaudited unless otherwise noted or accompanied by an audit opinion and is not intended as a substitute for, and should be read in the context of, the more comprehensive information contained in these other documents. In the event of any conflict, the information contained in our quarterly shareholders letters and our periodic reports and filings with the SEC shall take precedence. The information contained in this file speaks only as of the particular date or dates included in the accompanying pages. Square, Inc. (the "Company") does not undertake an obligation to, and disclaims any duty to, update any of the information provided.
The file also contains certain non-GAAP financial measures. The Company uses non-GAAP financial measures, among other financial measures, to evaluate its operating performance. Management believes that excluding certain items that are not comparable from period to period can help investors compare operating performance between two periods. Definitions for each non-GAAP financial measure are available in the shareholder letter for the corresponding periods.

GAAP IS

Square, Inc.
Condensed Consolidated Statements of Income
(In thousands, except for per share amounts)
(Unaudited)	Three months ended	Three months ended	Three months ended	Three months ended	Three months ended	Three months ended	Full year ended	Trailing twelve months
3/31/15	6/30/15	9/30/15	12/31/15	3/31/16	6/30/16	9/30/16	12/31/16	3/31/17	6/30/17	9/30/17	12/31/17	3/31/18	6/30/18	9/30/18	12/31/18	3/31/19	6/30/19	9/30/19	12/31/19	3/31/20	6/30/20	9/30/20	12/31/20	12/31/19	12/31/20
Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Dec 31,	Dec 31,	Dec 31,	Dec 31,	Dec 31,	Dec 31,	Dec 31,	Dec 31,	Dec 31,
2015	2015	2015	2015	2016	2016	2016	2016	2017	2017	2017	2017	2018	2018	2018	2018	2019	2019	2019	2019	2020	2020	2020	2020	2015	2016	2017	2018	2019	2020	2019	2020
Revenue
Transaction-based revenue	$ 211,110	$ 259,864	$ 280,955	$ 298,516	$ 300,453	$ 364,864	$ 388,347	$ 402,496	$ 403,478	$ 482,065	$ 510,019	$ 524,612	$ 523,037	$ 625,228	$ 655,384	$ 667,802	$ 656,762	$ 775,510	$ 816,622	$ 832,180	$ 758,101	$ 682,572	$ 925,294	$ 929,011	$ 1,050,445	$ 1,456,160	$ 1,920,174	$ 2,471,451	$ 3,081,074	$ 3,294,978	$ 3,081,074	$ 3,294,978
Starbucks transaction-based revenue	29,237	33,630	32,332	47,084	38,838	32,867	7,164	34	142,283	78,903
Subscription and services-based revenue	8,006	12,928	14,694	22,385	23,796	29,717	35,320	40,518	49,060	59,151	65,051	79,402	97,054	134,332	166,203	194,117	218,857	251,383	279,801	281,415	296,235	346,275	447,522	449,371	58,013	129,351	252,664	591,706	1,031,456	1,539,403	1,031,456	1,539,403
Hardware revenue	2,204	3,591	4,207	6,375	16,182	11,085	8,171	8,869	9,016	10,289	10,089	12,021	14,417	18,362	17,558	18,166	18,212	22,260	21,766	22,267	20,675	19,322	27,294	24,363	16,377	44,307	41,415	68,503	84,505	91,654	84,505	91,654
Bitcoin revenue	34,095	37,016	42,963	52,443	65,528	125,085	148,285	177,567	306,098	875,456	1,633,764	1,756,225	166,517	516,465	4,571,543	516,465	4,571,543
Total net revenue	$ 250,557	$ 310,013	$ 332,188	$ 374,360	$ 379,269	$ 438,533	$ 439,002	$ 451,917	$ 461,554	$ 551,505	$ 585,159	$ 616,035	$ 668,603	$ 814,938	$ 882,108	$ 932,528	$ 959,359	$ 1,174,238	$ 1,266,474	$ 1,313,429	$ 1,381,109	$ 1,923,625	$ 3,033,874	$ 3,158,970	$ 1,267,118	$ 1,708,721	$ 2,214,253	$ 3,298,177	$ 4,713,500	$ 9,497,578	$ 4,713,500	$ 9,497,578
Cost of revenue
Transaction-based costs	$ 132,107	$ 165,823	$ 182,007	$ 192,730	$ 194,276	$ 234,857	$ 254,061	$ 260,006	$ 257,778	$ 311,092	$ 328,043	$ 333,377	$ 327,911	$ 395,349	$ 414,456	$ 420,846	$ 409,069	$ 490,349	$ 519,312	$ 519,241	$ 465,779	$ 388,106	$ 522,680	$ 535,283	$ 672,667	$ 943,200	$ 1,230,290	$ 1,558,562	$ 1,937,971	$ 1,911,848	$ 1,937,971	$ 1,911,848
Starbucks transaction-based costs	36,211	40,921	41,410	46,896	36,610	28,672	4,528	-49	165,438	69,761
Subscription and services-based costs	3,155	5,072	5,593	8,650	9,033	10,144	12,524	11,431	15,876	17,116	18,169	24,559	30,368	39,784	47,078	52,654	60,523	60,119	63,352	50,276	40,711	50,169	66,786	65,046	22,470	43,132	75,720	169,884	234,270	222,712	234,270	222,712
Hardware costs	4,197	6,713	5,726	14,238	26,740	14,015	15,689	12,118	12,662	14,173	18,775	16,783	19,702	25,536	23,229	25,647	26,941	33,268	35,672	40,504	34,372	28,315	45,220	35,994	30,874	68,562	62,393	94,114	136,385	143,901	136,385	143,901
Bitcoin costs	33,872	36,596	42,408	51,951	64,696	122,938	146,167	174,438	299,426	858,041	1,601,615	1,715,452	164,827	508,239	4,474,534	508,239	4,474,534
Amortization of acquired technology	602	1,142	1,142	2,753	2,370	1,886	1,886	1,886	1,807	1,695	1,556	1,486	1,580	1,857	2,277	1,376	1,376	1,719	1,934	1,921	2,320	2,231	3,118	3,505	5,639	8,028	6,544	7,090	6,950	11,174	6,950	11,174
Total cost of revenue	$ 176,272	$ 219,671	$ 235,878	$ 265,267	$ 269,029	$ 289,574	$ 288,688	$ 285,392	$ 288,123	$ 344,076	$ 366,543	$ 376,205	$ 413,433	$ 499,122	$ 529,448	$ 552,474	$ 562,605	$ 708,393	$ 766,437	$ 786,380	$ 842,608	$ 1,326,862	$ 2,239,419	$ 2,355,280	$ 897,088	$ 1,132,683	$ 1,374,947	$ 1,994,477	$ 2,823,815	$ 6,764,169	$ 2,823,815	$ 6,764,169
Total gross profit	$ 74,285	$ 90,342	$ 96,310	$ 109,093	$ 110,240	$ 148,959	$ 150,314	$ 166,525	$ 173,431	$ 207,429	$ 218,616	$ 239,830	$ 255,170	$ 315,816	$ 352,660	$ 380,054	$ 396,754	$ 465,845	$ 500,037	$ 527,049	$ 538,501	$ 596,763	$ 794,455	$ 803,690	$ 370,030	$ 576,038	$ 839,306	$ 1,303,700	$ 1,889,685	$ 2,733,409	$ 1,889,685	$ 2,733,409
Operating expenses
Product development	$ 39,545	$ 45,887	$ 55,020	$ 59,186	$ 64,592	$ 68,638	$ 70,418	$ 64,889	$ 68,582	$ 78,126	$ 82,547	$ 92,633	$ 105,095	$ 114,800	$ 135,773	$ 141,811	$ 154,350	$ 174,201	$ 168,771	$ 173,284	$ 194,986	$ 206,825	$ 226,567	$ 253,448	$ 199,638	$ 268,537	$ 321,888	$ 497,479	$ 670,606	$ 881,826	$ 670,606	$ 881,826
Sales and marketing	36,181	31,730	39,259	38,448	38,496	39,220	46,754	49,406	49,900	59,916	66,533	76,821	77,266	98,243	116,337	119,305	133,713	156,421	149,467	185,231	194,535	238,096	348,463	328,576	145,618	173,876	253,170	411,151	624,832	1,109,670	624,832	1,109,670
General and administrative	28,119	31,804	37,820	45,723	96,107	50,784	52,075	53,027	56,935	62,988	64,312	66,318	75,501	82,772	85,527	95,445	101,598	100,508	115,980	118,164	129,495	136,386	153,902	159,420	143,466	251,993	250,553	339,245	436,250	579,203	436,250	579,203
Transaction and loan losses	16,322	8,513	16,005	13,169	7,861	17,455	12,885	13,034	11,891	18,401	19,893	16,833	18,031	21,976	23,596	24,474	27,841	34,264	32,722	32,132	108,883	37,603	15,198	15,986	54,009	51,235	67,018	88,077	126,959	177,670	126,959	177,670
Amortization of acquired customer assets	468	482	423	384	317	222	164	147	205	222	222	234	269	672	1,294	2,127	1,294	1,294	1,003	890	890	905	983	1,077	1,757	850	883	4,362	4,481	3,855	4,481	3,855
Total operating expenses	$ 120,635	$ 118,416	$ 148,527	$ 156,910	$ 207,373	$ 176,319	$ 182,296	$ 180,503	$ 187,513	$ 219,653	$ 233,507	$ 252,839	$ 276,162	$ 318,463	$ 362,527	$ 383,162	$ 418,796	$ 466,688	$ 467,943	$ 509,701	$ 628,789	$ 619,815	$ 745,113	$ 758,507	$ 544,488	$ 746,491	$ 893,512	$ 1,340,314	$ 1,863,128	$ 2,752,224	$ 1,863,128	$ 2,752,224
Operating income (loss)	$ (46,350)	$ (28,074)	$ (52,217)	$ (47,817)	$ (97,133)	$ (27,360)	$ (31,982)	$ (13,978)	$ (14,082)	$ (12,224)	$ (14,891)	$ (13,009)	$ (20,992)	$ (2,647)	$ (9,867)	$ (3,108)	$ (22,042)	$ (843)	$ 32,094	$ 17,348	$ (90,288)	$ (23,052)	$ 49,342	$ 45,183	$ (174,458)	$ (170,453)	$ (54,206)	$ (36,614)	$ 26,557	$ (18,815)	$ 26,557	$ (18,815)
Gain on sale of asset group	(373,445)
Interest (income) expense, net	414	444	137	168	69	(129)	(183)	(290)	996	3,494	3,080	2,483	2,112	3,470	7,224	5,176	4,681	5,143	5,632	6,060	9,206	14,769	14,980	17,988	1,163	(533)	10,053	17,982	21,516	56,943
Other (income) expense, net	796	(50)	644	(940)	(786)	(198)	294	443	(497)	(228)	(1,226)	356	707	(815)	(37,800)	19,439	11,299	1,230	(5,541)	(6,715)	5,862	(25,591)	(784)	(271,212)	450	(247)	(1,595)	(18,469)	273	(291,725)
Income (loss) before income tax	$ (47,560)	$ (28,468)	$ (52,998)	$ (47,045)	$ (96,416)	$ (27,033)	$ (32,093)	$ (14,131)	$ (14,581)	$ (15,490)	$ (16,745)	$ (15,848)	$ (23,811)	$ (5,302)	$ 20,709	$ (27,723)	$ (38,022)	$ (7,216)	$ 32,003	$ 391,448	$ (105,356)	$ (12,230)	$ 35,146	$ 298,407	$ (176,071)	$ (169,673)	$ (62,664)	$ (36,127)	$ 378,213	$ 215,967
Income tax provision (benefit)	418	1,152	932	1,244	339	312	230	1,036	509	472	(647)	(185)	175	604	1,066	481	129	(476)	2,606	508	535	(752)	(1,369)	4,448	3,746	1,917	149	2,326	2,767	2,862
Deemed dividend on Series E preferred stock	(32,200)	0	0	ERROR:#REF!	ERROR:#REF!
Net income (loss) to common stockholders	$ (80,489)	0	0	ERROR:#REF!	ERROR:#REF!
Net income (loss)	$ (47,978)	$ (29,620)	$ (53,930)	$ (48,289)	$ (96,755)	$ (27,345)	$ (32,323)	$ (15,167)	$ (15,090)	$ (15,962)	$ (16,098)	$ (15,663)	$ (23,986)	$ (5,906)	$ 19,643	$ (28,204)	$ (38,151)	$ (6,740)	$ 29,397	$ 390,940	$ (105,891)	$ (11,478)	$ 36,515	$ 293,959	$ (179,817)	$ (171,590)	$ (62,813)	$ (38,453)	$ 375,446	$ 213,105	$ 375,446	$ 213,105
Net income (loss) per share
Basic	$ (0.33)	$ (0.20)	$ (0.35)	$ (0.34)	$ (0.29)	$ (0.08)	$ (0.09)	$ (0.04)	$ (0.04)	$ (0.04)	$ (0.04)	$ (0.04)	$ (0.06)	$ (0.01)	$ 0.05	$ (0.07)	$ (0.09)	$ (0.02)	$ 0.07	$ 0.91	$ (0.24)	$ (0.03)	$ 0.08	$ 0.65	$ (1.23)	$ (0.50)	$ (0.17)	$ (0.09)	$ 0.88	$ 0.48
Diluted	$ (0.33)	$ (0.20)	$ (0.35)	$ (0.34)	$ (0.29)	$ (0.08)	$ (0.09)	$ (0.04)	$ (0.04)	$ (0.04)	$ (0.04)	$ (0.04)	$ (0.06)	$ (0.01)	$ 0.04	$ (0.07)	$ (0.09)	$ (0.02)	$ 0.06	$ 0.83	$ (0.24)	$ (0.03)	$ 0.07	$ 0.59	$ (1.23)	$ (0.50)	$ (0.17)	$ (0.09)	$ 0.81	$ 0.44
Weighted-average shares used to compute net loss per share
Basic	145,069	149,253	152,334	234,548	331,324	334,488	343,893	356,343	366,737	376,357	383,951	390,030	395,948	403,301	409,690	413,984	419,289	423,305	427,124	430,136	434,940	440,117	444,458	452,869	170,498	341,555	379,344	405,731	424,999	443,126
Diluted	145,069	149,253	152,334	234,548	331,324	334,488	343,893	356,343	366,737	376,357	383,951	390,030	395,948	403,301	474,915	413,984	419,289	423,305	466,099	485,394	434,940	440,117	488,069	502,237	170,498	341,555	379,344	405,731	466,076	482,167
Year-over-year growth metrics
Transaction-based revenue	42%	40%	38%	35%	34%	32%	31%	30%	30%	30%	29%	27%	26%	24%	25%	25%	15%	-12%	13%	12%	39%	32%	29%	25%	7%	7%
Subscription and services-based revenue	197%	130%	140%	81%	106%	99%	84%	96%	98%	127%	155%	144%	126%	87%	68%	45%	35%	38%	60%	60%	123%	95%	134%	74%	49%	49%
Hardware revenue	634%	209%	94%	39%	-44%	-7%	23%	36%	60%	78%	74%	51%	26%	21%	24%	23%	14%	-13%	25%	9%	171%	-7%	65%	23%	8%	8%
Total net revenue	51%	41%	32%	21%	22%	26%	33%	36%	45%	48%	51%	51%	43%	44%	44%	41%	44%	64%	140%	141%	35%	30%	49%	43%	101%	101%
Total gross profit	48%	65%	56%	53%	57%	39%	45%	44%	47%	52%	61%	58%	55%	48%	42%	39%	36%	28%	59%	52%	56%	46%	55%	45%	45%	45%

Non-GAAP IS

Square, Inc.
Non-GAAP disclosures
(In thousands, except for per share amounts)
(Unaudited)	Three months ended	Three months ended	Three months ended	Three months ended	Three months ended	Three months ended	Full year ended	Trailing twelve months
3/31/15	6/30/15	9/30/15	12/31/15	3/31/16	6/30/16	9/30/16	12/31/16	3/31/17	6/30/17	9/30/17	12/31/17	3/31/18	6/30/18	9/30/18	12/31/18	3/31/19	6/30/19	9/30/19	12/31/19	3/31/20	6/30/20	9/30/20	12/31/20	12/31/19	12/31/20
Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Dec 31,	Dec 31,	Dec 31,	Dec 31,	Dec 31,	Dec 31,	Dec 31,	Dec 31,	Dec 31,
2015	2015	2015	2015	2016	2016	2016	2016	2017	2017	2017	2017	2018	2018	2018	2018	2019	2019	2019	2019	2020	2020	2020	2020	2015	2016	2017	2018	2019	2020	2019	2020
Total net revenue, in accordance with GAAP	$ 250,557	$ 310,013	$ 332,188	$ 374,360	$ 379,269	$ 438,533	$ 439,002	$ 451,917	$ 461,554	$ 551,505	$ 585,159	$ 616,035	$ 668,603	$ 814,938	$ 882,108	$ 932,528	$ 959,359	$ 1,174,238	$ 1,266,474	$ 1,313,429	$ 1,381,109	$ 1,923,625	$ 3,033,874	$ 3,158,970	$ 1,267,118	$ 1,708,721	$ 2,214,253	$ 3,298,177	$ 4,713,500	$ 9,497,578	$ 4,713,500	$ 9,497,578
Starbucks transaction-based revenue	29,237	33,630	32,332	47,084	38,838	32,867	7,164	34	142,283	78,903	0	0	0
Transaction-based costs	132,107	165,823	182,007	192,730	194,276	234,857	254,061	260,006	257,778	311,092	328,043	333,377	327,911	395,349	414,456	420,846	409,069	490,349	519,312	672,667	943,200	1,230,290	1,558,562
Bitcoin costs	33,872	36,596	42,408	51,951	64,696	122,938	146,167	164,827
Deferred revenue adj. related to purchase accounting	2,440	5,892	4,521	3,456	1,849	1,224	12,853
Adjusted Revenue(1)	$ 89,213	$ 110,560	$ 117,849	$ 134,546	$ 146,155	$ 170,809	$ 177,777	$ 191,877	$ 203,776	$ 240,413	$ 257,116	$ 282,658	$ 306,820	$ 385,433	$ 431,136	$ 464,252	$ 489,050	$ 562,800	$ 602,219	$ 452,168	$ 686,618	$ 983,963	$ 1,587,641
Revenue from Zesty and Weebly	$ 12,540	$ 25,027	$ 26,152	$ 28,000
Deferred revenue adj. related to purchase accounting	2,440	5,892	4,521	3,456
Adjusted Revenue (excl. Weebly and Zesty)	$ 370,453	$ 400,217	$ 433,579	$ 457,594
Gross profit, in accordance with GAAP	$ 74,285	$ 90,342	$ 96,310	$ 109,093	$ 110,240	$ 148,959	$ 150,314	$ 166,525	$ 173,431	$ 207,429	$ 218,616	$ 239,830	$ 255,170	$ 315,816	$ 352,660	$ 380,054	$ 396,754	$ 465,845	$ 500,037	$ 527,049	$ 538,501	$ 596,763	$ 794,455	$ 803,690	$ 370,030	$ 576,038	$ 839,306	$ 1,303,700	$ 1,889,685	$ 2,733,409	$ 1,889,685	$ 2,733,409
Operating expenses : [e-mail] this isn't a defined metric. Can we still include it? -Tori Bertschy What's the value of this? -Shahzia Rahman So we can define it now vs. doing it in the future (and can exclude in case we did any M&A) -Tori Bertschy	$ 120,635	$ 118,416	$ 148,527	$ 156,910	$ 207,373	$ 176,319	$ 182,296	$ 180,503	$ 187,513	$ 219,653	$ 233,507	$ 252,839	$ 276,162	$ 318,463	$ 362,527	$ 383,162	$ 418,796	$ 466,688	$ 467,943	$ 509,701	$ 628,789	$ 619,815	$ 745,113	$ 758,507	$ 544,488	$ 746,491	$ 893,512	$ 1,340,314	$ 1,863,128	$ 2,752,224	$ 1,863,128	$ 2,752,224
Share-based compensation	13,461	15,232	20,793	32,806	31,198	36,922	36,779	33,887	31,670	39,575	40,019	44,495	46,793	52,089	58,895	59,007	61,067	79,437	77,388	79,816	77,227	96,085	110,289	113,531	82,292	138,786	155,759	216,784	297,708	397,132	297,708	397,132
Depreciation and amortization	4,943	5,268	5,428	5,165	6,189	6,573	7,230	7,544	7,531	7,400	7,498	8,115	8,580	10,242	13,215	20,754	17,236	16,873	17,084	16,691	17,635	18,788	17,507	18,966	20,804	27,536	30,544	52,791	67,884	72,896	67,884	72,896
Litigation settlement expense	50,000	(2,000)	0	48,000	0	0	0	0
Loss (gain) on disposal of property and equipment	240	30	(38)	169	(219)	39	2	62	36	(98)	73	806	(1,005)	19	281	128	580	218	1,481	396	475	270	-49	100	-224	1,008	2,570	1,008	2,570
Acquisition related costs	4,363	345	782	6,133	1,564	1,260	1,524	2,056	359	3,543	0	0	0	4,708	9,739	7,482	9,739	7,482
Non-GAAP operating expenses	$ 101,991	$ 97,916	$ 122,306	$ 118,909	$ 120,024	$ 134,655	$ 138,506	$ 139,033	$ 148,312	$ 172,676	$ 185,928	$ 200,193	$ 220,887	$ 251,696	$ 289,266	$ 304,406	$ 339,692	$ 363,964	$ 371,779	$ 411,354	$ 532,185	$ 501,405	$ 616,562	$ 621,992	$ 441,122	$ 532,218	$ 707,109	$ 1,066,255	$ 1,486,789	$ 2,272,144	$ 1,486,789	$ 2,272,144
Other adjustments(2)	7,577	8,433	10,220	3,747	701	(1,750)	(185)	2,301	$ 1,906	$ 1,743	$ 1,616	$ 1,547	$ 1,611	$ 4,202	$ 7,603	$ 5,662	$ 4,635	$ 3,423	$ 3,065	$ 2,834	$ 3,015	$ 2,573	$ 3,427	$ 3,791	$ 29,977	$ 1,067	$ 6,812	$ 19,078	$ 13,957	$ 12,806	$ 13,957	$ 9,015
Adjusted EBITDA	$ (20,129)	$ 859	$ (15,776)	$ (6,069)	$ (9,083)	$ 12,554	$ 11,623	$ 29,793	$ 27,025	$ 36,496	$ 34,304	$ 41,184	$ 35,894	$ 68,322	$ 70,997	$ 81,310	$ 61,697	$ 105,304	$ 131,323	$ 118,529	$ 9,331	$ 97,931	$ 181,320	$ 185,489	$ (41,115)	$ 44,887	$ 139,009	$ 256,523	$ 416,853	$ 474,071	$ 416,853	$ 474,071
56.49%
GAAP product development	$ 39,545	$ 45,887	$ 55,020	$ 59,186	$ 64,592	$ 68,638	$ 70,418	$ 64,889	$ 68,582	$ 78,126	$ 82,547	$ 92,633	$ 105,095	$ 114,800	$ 135,773	$ 141,811	$ 154,350	$ 174,201	$ 168,771	$ 173,284	$ 194,986	$ 206,825	$ 226,567	$ 253,448	$ 199,638	$ 268,537	$ 321,888	$ 497,479	$ 670,606	$ 881,826
Share-based compensation	8,958	10,391	13,938	21,451	21,947	24,168	23,949	21,340	19,356	25,136	25,254	28,564	30,482	33,806	39,525	40,788	42,649	56,144	56,321	55,726	57,400	69,565	78,682	83,906	54,738	91,404	98,310	144,601	210,840	289,553
Depreciation and amortization	2,881	3,055	3,171	2,240	3,141	3,128	3,282	3,639	3,712	3,436	4,586	5,221	5,473	5,974	7,831	14,029	11,142	11,478	11,933	11,446	12,336	12,696	11,546	12,647	11,347	13,190	16,955	33,307	45,999	49,225
Loss (gain) on disposal of property equipment	169	(169)	712	(986)	(71)	379	158	147	381	198	0	0	0	(274)	308	884
Non-GAAP product development	$ 27,706	$ 32,441	$ 37,911	$ 35,495	$ 39,504	$ 41,173	$ 43,356	$ 39,910	$ 45,514	$ 49,554	$ 52,707	$ 58,848	$ 69,140	$ 75,020	$ 87,705	$ 87,980	$ 100,630	$ 106,579	$ 100,517	$ 105,733	$ 125,092	$ 124,417	$ 135,958	$ 156,697	$ 133,553	$ 163,943	$ 206,623	$ 319,845	$ 413,459	$ 542,164
GAAP sales and marketing	$ 36,181	$ 31,730	$ 39,259	$ 38,448	$ 38,496	$ 39,220	$ 46,754	$ 49,406	$ 49,900	$ 59,916	$ 66,533	$ 76,821	$ 77,266	$ 98,243	$ 116,337	$ 119,305	$ 133,713	$ 156,421	$ 149,467	$ 185,231	$ 194,535	$ 238,096	$ 348,463	$ 328,576	$ 145,618	$ 173,876	$ 253,170	$ 411,151	$ 624,832	$ 1,109,670
Share-based compensation	1,429	1,345	1,750	2,836	2,903	3,363	3,697	4,159	3,935	4,355	4,579	4,699	4,961	5,634	6,108	6,094	6,202	7,833	6,269	6,416	6,407	8,884	12,063	9,273	7,360	14,122	17,568	22,797	26,720	36,627
Depreciation and amortization	4	3	3	2	6	5	17	77	98	650	590	609	952	1,608	1,238	1,078	1,085	1,093	1,188	964	1,033	1,060	1,095	10	30	1,415	4,407	4,444	4,152
Loss (gain) on disposal of property equipment	53	18	14	41	58	2	62	36	4	76	91	68	151	194	83	95	60	(59)	(3)	53	73	158	239	523	(2)
Non-GAAP sales and marketing	$ 34,748	$ 30,385	$ 37,506	$ 35,556	$ 35,573	$ 35,851	$ 43,038	$ 45,189	$ 45,830	$ 55,461	$ 61,242	$ 71,496	$ 71,692	$ 91,581	$ 108,530	$ 111,905	$ 126,282	$ 147,309	$ 142,022	$ 177,532	$ 187,104	$ 228,238	$ 335,340	$ 318,211	$ 138,195	$ 159,651	$ 234,029	$ 383,708	$ 593,145	$ 1,068,893
GAAP general and administrative	$ 28,119	$ 31,804	$ 37,820	$ 45,723	$ 96,107	$ 50,784	$ 52,075	$ 53,027	$ 56,935	$ 62,988	$ 64,312	$ 66,318	$ 75,501	$ 82,772	$ 85,527	$ 95,445	$ 101,598	$ 100,508	$ 115,980	$ 118,164	$ 129,495	$ 136,386	$ 153,902	$ 159,420	$ 143,466	$ 251,993	$ 250,553	$ 339,245	$ 436,250	$ 579,203
Share-based compensation	3,074	3,496	5,105	8,519	6,348	9,391	9,133	8,388	8,379	10,084	10,186	11,232	11,350	12,649	13,262	12,125	12,216	15,460	14,798	17,674	13,420	17,636	19,544	20,352	20,194	33,260	39,881	49,386	60,148	70,952
Depreciation and amortization	1,590	1,731	1,831	2,538	2,729	3,217	3,779	3,741	3,537	3,644	2,040	2,070	2,229	2,644	2,482	3,360	2,931	3,016	3,055	3,167	3,445	4,154	3,918	4,147	7,690	13,466	11,291	10,715	12,169	15,664
Litigation settlement expense	50,000	(2,000)	48,000
Loss (gain) on disposal of property equipment	240	(23)	(56)	(64)	(2)	(58)	(102)	(3)	3	(87)	(61)	87	45	106	1,393	15	280	217	(122)	(58)	(189)	177	1,688
Acquisition related and other costs	4,363	345	782	6,133	1,564	1,260	1,524	2,056	359	3,543	4,708	9,739	7,482
Non-GAAP general and administrative	$ 23,215	$ 26,577	$ 30,884	$ 34,689	$ 37,086	$ 40,176	$ 39,227	$ 40,900	$ 45,077	$ 49,260	$ 52,086	$ 53,016	$ 62,024	$ 63,119	$ 69,435	$ 80,047	$ 85,730	$ 75,812	$ 96,518	$ 95,957	$ 111,106	$ 111,147	$ 130,066	$ 131,098	$ 115,365	$ 157,389	$ 199,439	$ 274,625	$ 354,017	$ 483,417
Adjusted EBITDA reconciliation
GAAP net income (loss)	$ (47,978)	$ (29,620)	$ (53,930)	$ (48,289)	$ (96,755)	$ (27,345)	$ (32,323)	$ (15,167)	$ (15,090)	$ (15,962)	$ (16,098)	$ (15,663)	$ (23,986)	$ (5,906)	$ 19,643	$ (28,204)	$ (38,151)	$ (6,740)	$ 29,397	$ 390,940	$ (105,891)	$ (11,478)	$ 36,515	$ 293,959	$ (179,817)	$ (171,590)	$ (62,813)	$ (38,453)	$ 375,446	$ 213,105
Starbucks transaction-based revenue	(29,237)	(33,630)	(32,332)	(47,084)	(38,838)	(32,867)	(7,164)	(34)	(142,283)	(78,903)
Starbucks transaction-based costs	36,211	40,921	41,410	46,896	36,610	28,672	4,528	(49)	165,438	69,761
Share-based compensation expense	13,461	15,232	20,793	32,806	31,198	36,922	36,779	33,887	31,670	39,593	40,048	44,525	46,824	52,119	58,913	59,025	61,088	79,466	77,426	79,883	77,303	96,180	110,389	113,628	82,292	138,786	155,836	216,881	297,863	397,500
Depreciation and amortization	5,546	6,410	6,570	9,100	9,118	9,018	9,681	9,928	9,437	9,125	9,085	9,632	10,160	12,328	15,835	22,638	18,971	18,783	19,125	18,719	20,061	21,056	20,624	22,471	27,626	37,745	37,279	60,961	75,598	84,212
Litigation settlement expense	50,000	(2,000)	48,000
Interest expense, net	414	444	137	168	69	(129)	(183)	(290)	996	3,494	3,080	2,483	2,112	3,470	7,224	5,176	4,681	5,143	5,632	6,060	9,206	14,769	14,980	17,988	1,163	(533)	10,053	17,982	21,516	56,943
Other expense (income), net	796	(50)	644	(940)	(786)	(198)	294	443	(497)	(228)	(1,226)	356	707	(815)	(37,800)	19,439	11,299	1,230	(5,541)	(6,715)	5,862	(25,591)	(784)	(271,212)	450	(247)	(1,595)	(18,469)	273	(291,725)
Income tax provision (benefit)	418	1,152	932	1,244	339	312	230	1,036	509	472	(647)	(185)	175	604	1,066	481	129	(476)	2,606	508	535	(752)	(1,369)	4,448	3,746	1,917	149	2,326	2,767	2,862
Loss (gain) on disposal of property and equipment	240	30	(38)	169	(219)	39	2	62	36	(98)	73	806	(1,005)	19	281	128	580	218	1,481	396	475	270	(49)	100	(224)	1,008	2,570
Gain on sale of asset group	(373,445)
Impairment of intangible assets
Acquisition related and other costs	4,363	345	782	6,133	1,564	1,260	1,524	2,056	359	3,543	4,708	9,739	7,482
Acquired deferred revenue adjustment	2,440	5,892	4,521	3,456	1,849	1,224	928	657	302	281	257	12,853	7,457	1,497
Acquired deferred costs adjustment	(354)	(927)	(761)	(577)	(365)	(238)	(189)	(144)	(92)	(71)	(68)	(2,042)	(1,369)	(375)
Adjusted EBITDA	$ (20,129)	$ 859	$ (15,776)	$ (6,069)	$ (9,083)	$ 12,554	$ 11,623	$ 29,793	$ 27,025	$ 36,496	$ 34,304	$ 41,184	$ 35,894	$ 68,322	$ 70,997	$ 81,310	$ 61,697	$ 105,304	$ 131,323	$ 118,529	$ 9,331	$ 97,931	$ 181,320	$ 185,489	$ (41,115)	$ 44,887	$ 139,009	$ 256,523	$ 416,853	$ 474,071	$ 416,853	$ 474,071
Adjusted net income reconciliation
GAAP net income (loss)	$ (47,978)	$ (29,620)	$ (53,930)	$ (48,289)	$ (96,755)	$ (27,345)	$ (32,323)	$ (15,167)	$ (15,090)	$ (15,962)	$ (16,098)	$ (15,663)	$ (23,986)	$ (5,906)	$ 19,643	$ (28,204)	$ (38,151)	$ (6,740)	$ 29,397	$ 390,940	$ (105,891)	$ (11,478)	$ 36,515	$ 293,959	$ (179,817)	$ (171,590)	$ (62,813)	$ (38,453)	$ 375,446	$ 213,105
Starbucks transaction-based revenue	(38,838)	(32,867)	(7,164)	(34)	(142,283)	(78,903)
Starbucks transaction-based costs	36,610	28,672	4,528	(49)	165,438	69,761
Share-based compensation expense	31,198	36,922	36,779	33,887	31,670	39,593	40,048	44,525	46,824	52,119	58,913	59,025	61,088	79,466	77,426	79,883	77,303	96,180	110,389	113,628	82,292	138,786	155,836	216,881	297,863	397,500
Amortization of intangible assets	2,713	2,134	2,076	2,090	2,121	1,943	1,804	1,747	1,875	2,816	4,384	4,029	3,487	3,958	3,841	3,714	4,152	4,134	5,236	5,717	7,503	9,013	7,615	13,104	15,000	19,239
Litigation settlement expense	50,000	(2,000)	48,000
Amortization of debt discount and issuance costs	1,390	4,221	4,277	4,335	4,393	6,830	11,627	10,005	9,608	9,725	9,843	9,963	12,528	17,580	17,516	20,355	14,223	32,855	39,139	67,979
Loss (gain) on revaluation of equity investment	(36,908)	16,566	14,087	4,842	(2,462)	(4,141)	(20,998)	(274,299)	(20,342)	12,326	(295,297)
Loss on extinguishment of long-term debt	1,625	3,403	990	1,403	4,258	5,028	6,651
Loss (gain) on disposal of property and equipment	(38)	169	(219)	39	2	62	36	(98)	73	806	(1,005)	19	281	128	580	218	1,481	396	475	270	(49)	100	(224)	1,008	2,570
Impairment of intangible assets
Gain on sale of asset group	(373,445)	(373,445)
Acquisition related and other costs	4,363	345	782	6,133	1,564	1,260	1,524	2,056	359	3,543	4,708	9,739	7,482
Acquired deferred revenue adjustment	2,440	5,892	4,521	3,456	1,849	1,224	928	657	302	281	257	12,853	7,457	1,497
Acquired deferred cost adjustment	(354)	(927)	(761)	(577)	(365)	(238)	(189)	(144)	(92)	(71)	(68)	(2,042)	(1,369)	(375)
Adjusted net income - basic	$ (47,978)	$ (29,620)	$ (53,930)	$ (48,289)	$ (15,110)	$ 5,685	$ 3,677	$ 20,766	$ 20,091	$ 29,797	$ 30,093	$ 34,980	$ 29,008	$ 62,381	$ 65,400	$ 67,579	$ 53,799	$ 99,149	$ 120,723	$ 109,493	$ (8,663)	$ 89,165	$ 172,024	$ 167,825	$ (66,597)	$ 15,018	$ 114,961	$ 224,368	$ 383,164	$ 420,351
Cash interest expense on convertible notes	1,292	1,277	1,277	1,277	1,277	0	1,565	1,544	1,596	1,292	5,108	6,078
Adjusted net income - diluted	$ (47,978)	$ (29,620)	$ (53,930)	$ (48,289)	$ (15,110)	$ 5,685	$ 3,677	$ 20,766	$ 20,091	$ 29,797	$ 30,093	$ 34,980	$ 29,008	$ 62,381	$ 65,400	$ 68,871	$ 55,076	$ 100,426	$ 122,000	$ 110,770	$ (8,663)	$ 90,730	$ 173,568	$ 169,421	$ (66,597)	$ 15,018	$ 114,961	$ 225,660	$ 388,272	$ 426,429
Adjusted Net income (loss) per share:
Basic	$ (0.33)	$ (0.20)	$ (0.35)	$ (0.21)	$ (0.05)	$ 0.02	$ 0.01	$ 0.06	$ 0.05	$ 0.08	$ 0.08	$ 0.09	$ 0.07	$ 0.15	$ 0.16	$ 0.16	$ 0.13	$ 0.23	$ 0.28	$ 0.25	$ (0.02)	$ 0.20	$ 0.39	$ 0.37	$ (1.09)	$ 0.04	$ 0.30	$ 0.54	$ 0.89	$ 0.95
Diluted	$ (0.05)	$ 0.02	$ 0.01	$ 0.05	$ 0.05	$ 0.07	$ 0.07	$ 0.08	$ 0.06	$ 0.13	$ 0.13	$ 0.14	$ 0.11	$ 0.21	$ 0.25	$ 0.23	$ (0.02)	$ 0.18	$ 0.34	$ 0.32	$ 0.03	$ 0.27	$ 0.46	$ 0.80	$ 0.84
Shares outstanding
Basic	145,069	149,253	152,334	234,548	331,324	334,488	343,893	356,343	366,737	376,357	383,951	390,030	395,948	403,301	409,690	413,984	419,289	423,305	427,124	430,136	434,940	440,117	444,458	452,869	170,498	341,555	379,344	405,731	424,999	443,126
DIluted	331,324	365,731	370,746	382,531	404,319	418,468	432,284	450,703	461,761	470,022	495,621	488,177	487,056	486,532	486,404	485,394	434,940	500,243	514,806	523,586	170,498	341,555	426,519	478,895	486,381	507,229
Year-over-year growth metrics
Adjusted Revenue	63.8%	54.5%	50.9%	42.6%	39%	41%	45%	47%	51%	60%	68%	64%	59%	46%	40%	52%	43%	61%
Adjusted Revenue (excl. Weebly and Zesty)	54%	56%	53%	49%
Non-GAAP operating expenses : Why is this on this tab? -Shahzia Rahman We can remove -Tori Bertschy	17.7%	37.5%	13.2%	16.9%	24%	28%	34%	44%	49%	46%	56%	52%	54%	45%	29%	35%	57%	38%	66%	51%	21%	33%	51%	39%	53%	53%
Adjusted EBITDA	NM	NM	NM	NM	NM	191%	195%	38%	33%	87%	107%	97%	72%	54%	85%	46%	-85%	-7%	38%	56%	NM	210%	85%	63%	14%	14%
(1) We discontinued the use of Adjusted Revenue in the third quarter of 2019, following receipt of a comment letter from and discussions with the SEC.
(2) Other adjustments primarily includes Starbucks in 2015, deferred revenue adjustments related to Weebly acquisition, and other immaterial adjustments.

Operating Metrics

Square, Inc.
Operating Metrics
(In thousands, except for per share amounts)
(Unaudited)	Three months ended	Three months ended	Three months ended	Three months ended	Three months ended	Three months ended	Full year ended	Trailing twelve months ended
3/31/15	6/30/15	9/30/15	12/31/15	3/31/16	6/30/16	9/30/16	12/31/16	3/31/17	6/30/17	9/30/17	12/31/17	3/31/18	6/30/18	9/30/18	12/31/18	3/31/19	6/30/19	9/30/19	12/31/19	3/31/20	6/30/20	9/30/20	12/31/20	12/31/19	12/31/20
Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Dec 31,	Dec 31,	Dec 31,	Dec 31,	Dec 31,	Dec 31,	Dec 31,	Dec 31,	Dec 31,
2015	2015	2015	2015	2016	2016	2016	2016	2017	2017	2017	2017	2018	2018	2018	2018	2019	2019	2019	2019	2020	2020	2020	2020	2015	2016	2017	2018	2019	2020	2019	2020
Operating Metrics
Gross processing volume (GPV)	$ 7,117,000	$ 8,793,000	$ 9,540,000	$ 10,193,000	$ 10,290,000	$ 12,450,837	$ 13,248,135	$ 13,693,983	$ 13,647,000	$ 16,421,173	$ 17,386,205	$ 17,888,400	$ 17,826,540	$ 21,371,512	$ 22,497,848	$ 22,957,891	$ 22,586,500	$ 26,784,714	$ 28,228,259	$ 28,639,221	$ 25,742,640	$ 22,800,998	$ 31,728,726	$ 32,022,498	$ 35,643,000	$ 49,682,955	$ 65,342,778	$ 84,653,791	$ 106,238,694	$ 112,294,862	$ 106,238,694	$ 112,294,862
YoY Growth Rate	44.6%	41.6%	38.9%	34.3%	32.6%	31.9%	31.2%	30.6%	30.6%	30.1%	29.4%	28.3%	26.7%	25.3%	25.5%	24.7%	1.0%	-14.9%	12.4%	11.8%	39.4%	31.5%	29.6%	25.5%	5.7%	5.7%
GPV mix by Seller
Micro (<$125K GPV)	61%	58%	56%	57%	57%	54%	52%	52%	52%	49%	47%	48%	48%	45%	44%	44%	46%	43%	39%	40%
SMB ($125K-$500K GPV)	26%	27%	27%	27%	27%	28%	28%	28%	28%	28%	28%	28%	28%	29%	29%	28%	29%	30%	30%	30%
Mid-market (>$500K GPV)	14%	15%	16%	17%	16%	19%	20%	20%	20%	23%	24%	24%	24%	27%	28%	28%	26%	27%	31%	30%
Larger Sellers (>$125K GPV)	40%	42%	44%	43%	43%	47%	48%	48%	48%	51%	53%	52%	52%	55%	56%	56%	54%	57%	61%	60%
Total Cash App revenue	$ 260,493	$ 307,040	$ 360,664	$ 527,642	$ 1,200,269	$ 2,068,595	$ 2,171,880
Bitcoin revenue	$ 125,085	$ 148,285	$ 177,567	$ 306,098	$ 875,456	$ 1,633,764	$ 1,756,225
Total Cash App revenue ex-bitcoin	$ 135,408	$ 158,755	$ 183,097	$ 221,544	$ 324,813	$ 434,831	$ 415,655
Sales and marketing, in accordance with GAAP	$ 36,181	$ 31,730	$ 39,259	$ 38,448	$ 38,496	$ 39,220	$ 46,754	$ 49,406	$ 49,900	$ 59,916	$ 66,533	$ 76,821	$ 77,266	$ 98,243	$ 116,337	$ 119,305	$ 133,713	$ 156,421	$ 149,467	$ 185,231	$ 194,535	$ 238,096	$ 348,463	$ 328,576
Cash App marketing costs	2,773	2,147	3,871	3,320	4,487	3,072	6,056	6,150	8,775	10,025	12,436	16,673	21,693	32,404	43,113	46,431	59,368	69,801	68,444	92,439	107,554	$ 149,352	$ 216,980	$ 223,396	$ 12,111	$ 19,765	$ 47,909	$ 143,641	$ 290,052	$ 290,052	$ 697,282
YoY Growth	62%	43%	56%	85%	96%	226%	105%	171%	147%	223%	247%	178%	174%	115%	59%	99%	81%	114%	217%	128%	63%	142%	200%	102%	140%
Other sales and marketing expenses(1)	$ 33,408	$ 29,583	$ 35,388	$ 35,128	$ 34,009	$ 36,148	$ 40,698	$ 43,256	$ 41,125	$ 49,891	$ 54,097	$ 60,148	$ 55,573	$ 65,839	$ 73,224	$ 72,874	$ 74,345	$ 86,620	$ 81,023	$ 92,792	$ 86,981	$ 88,744	$ 131,483	$ 105,180	$ 133,507	$ 154,111	$ 205,261	$ 267,510	$ 334,780	$ 334,780	$ 412,388
YoY Growth	2%	22%	15%	23%	21%	38%	33%	39%	35%	32%	35%	21%	34%	32%	11%	27%	17%	2%	62%	13%	15%	33%	30%	25%	23%
Caviar sales and marketing costs	$ 4,165	$ 3,883	$ 3,428	$ 4,533	$ 5,229	$ 5,593	$ 6,205	$ 1,893	$ - 0	$ - 0	$ - 0	$ - 0
Sales and marketing excluding Cash App marketing costs and Caviar sales and marketing costs(1)	$ 51,408	$ 61,956	$ 69,796	$ 68,341	$ 69,116	$ 81,027	$ 74,818	$ 90,899	$ 86,981	$ 88,744	$ 131,483	$ 105,180	$ 251,501	$ 315,860	$ 315,860	$ 412,388
YoY Growth	34%	31%	7%	33%	26%	10%	76%	21%	26%	31%
Note: We define GPV as the total dollar amount of all card payments processed by sellers using Square, net of refunds. Additionally, GPV includes Cash App activity only related to peer-to-peer payments sent from a credit card and Cash for Business. GPV excludes card payments processed for Starbucks.
(1) Other sales and marketing expenses include advertising, personnel, and other costs.
Beginning in Q4 2020, Cash App marketing costs include referrals. Therefore, Cash App marketing costs beginning in Q4 2020 are not directly comparable to prior periods and the year-over-year growth rates will differ.

Segment Information

Square, Inc.
Segment information
(In thousands, except for per share amounts)	Year	Year	Year
(Unaudited)	ended	ended	ended	Three months ended	Three months ended
9/30/19	9/30/20	6/30/19	9/30/19	6/30/20	9/30/20
Dec 31,	Dec 31,	Dec 31,	March 31,	June 30,	Sep 30,	Dec 31,	March 31,	June 30,	Sep 30,	Dec 31,
Seller ecosystem	2018	2019	2020	2019	2019	2019	2019	2020	2020	2020	2020
Transaction-based revenue	2,428,736	3,008,209	3,061,231	641,482	758,544	797,406	810,777	730,282	628,915	844,573	857,461
Subscriptions and services-based revenue	222,279	369,274	376,307	75,732	89,552	99,315	104,675	102,510	75,119	93,412	105,266
Hardware revenue	68,503	84,505	91,654	18,212	22,260	21,766	22,267	20,675	19,322	27,294	24,363
Bitcoin revenue
Revenue	2,719,518	3,461,988	3,529,192	735,426	870,356	918,487	937,719	853,467	723,356	965,279	987,090
Cost of revenue	1,647,022	2,071,561	2,021,361	434,923	523,148	554,603	558,887	497,698	407,656	555,948	560,059
Gross profit	1,072,496	1,390,427	1,507,831	300,503	347,208	363,884	378,832	355,769	315,700	409,331	427,031
Cash App eocsystem
Transaction-based revenue	42,715	72,865	233,747	15,280	16,966	19,216	21,403	27,819	53,657	80,721	71,550
Subscriptions and services-based revenue	220,819	516,269	1,163,096	96,594	118,442	139,539	161,694	193,725	271,156	354,110	344,105
Hardware revenue
Bitcoin revenue	166,517	516,465	4,571,543	65,528	125,085	148,285	177,567	306,098	875,456	1,633,764	1,756,225
Revenue	430,051	1,105,599	5,968,386	177,402	260,493	307,040	360,664	527,642	1,200,269	2,068,595	2,171,880
Cost of revenue	235,216	647,931	4,742,808	92,591	155,152	183,550	216,638	344,910	919,206	1,683,471	1,795,221
Gross profit	194,835	457,668	1,225,578	84,811	105,341	123,490	144,026	182,732	281,063	385,124	376,659
Year-over-year growth
Seller ecosystem
Transaction-based revenue	24%	2%	14%	-17%	6%	6%
Subscriptions and services-based revenue	66%	2%	35%	-16%	-6%	1%
Hardware revenue	23%	8%	14%	-13%	25%	9%
Bitcoin revenue
Revenue	27%	2%	16%	-17%	5%	5%
Cost of goods sold	26%	-2%	14%	-22%	0%	0%
Gross profit	30%	8%	18%	-9%	12%	13%
Cash App ecosystem
Transaction-based revenue	71%	221%	82%	216%	320%	234%
Subscriptions and services-based revenue	134%	125%	101%	129%	154%	113%
Hardware revenue
Bitcoin revenue	210%	785%	367%	600%	1002%	889%
Revenue	157%	440%	197%	361%	574%	502%
Cost of goods sold	175%	632%	273%	492%	817%	729%
Gross profit	135%	168%	115%	167%	212%	162%
Note: Numbers for the six months and three months ended June 30, 2019 exclude Caviar (Refer to "Pro Forma ex-Caivar" tab). In the year ended December 31, 2019, the Company sold the Caviar business, a food ordering and delivery platform that does not align with and further contribute to the two operating segments.

Pro Forma ex-Caviar

Square, Inc.
Select Financial Results, Pro Forma ex-Caviar
(In thousands, except for per share amounts)
(Unaudited)	Three months ended	Three months ended
Mar 31,	June 30,	Sep 30,	Dec 31,	Mar 31,	June 30,	Sep 30,	Oct 31,
2018	2018	2018	2018	2019	2019	2019	2019
Total net revenue, in accordance with GAAP	$ 668,603	$ 814,938	$ 882,108	$ 932,528	$ 959,359	$ 1,174,238	$ 1,266,474	$ 1,313,429
Caviar	27,469	36,927	39,583	44,283	46,531	43,389	40,947	15,054
Total net revenue ex-Caviar	$ 641,134	$ 778,011	$ 842,525	$ 888,245	$ 912,828	$ 1,130,849	$ 1,225,527	$ 1,298,375
Subscription and services-based revenue	$ 97,054	$ 134,332	$ 166,203	$ 194,117	$ 218,857	$ 251,383	$ 279,801	$ 281,415
Caviar	27,469	36,927	39,583	44,283	46,531	43,389	40,947	15,054
Subscription and services-based revenue ex-Caviar	$ 69,585	$ 97,405	$ 126,620	$ 149,834	$ 172,326	$ 207,994	$ 238,854	$ 266,361
Adjusted Revenue	$ 306,820	$ 385,433	$ 431,136	$ 464,252	$ 489,050	$ 562,800	$ 602,219	$ - 0
Caviar	27,469	36,927	39,583	44,283	46,531	43,389	40,947
Adjusted Revenue ex-Caviar	$ 279,351	$ 348,506	$ 391,553	$ 419,969	$ 442,519	$ 519,411	$ 561,272
Cost of revenue, in accordance with GAAP	$ 413,433	$ 499,122	$ 529,448	$ 552,474	$ 562,605	$ 708,393	$ 766,437	$ 786,380
Caviar cost of revenue	21,223	27,569	29,820	33,549	35,091	30,093	28,284	10,666
Cost of revenue ex-Caviar	$ 392,210	$ 471,553	$ 499,628	$ 518,925	$ 527,514	$ 678,300	$ 738,153	$ 775,714
Gross Profit, in accordance with GAAP	$ 255,170	$ 315,816	$ 352,660	$ 380,054	$ 396,754	$ 465,845	$ 500,037	$ 527,049
Caviar	6,246	9,358	9,763	10,734	11,440	13,296	12,663	4,380
Gross profit ex-Caviar	$ 248,924	$ 306,458	$ 342,897	$ 369,320	$ 385,314	$ 452,549	$ 487,374	$ 522,669
Operating expenses, in accordance with GAAP	$ 276,162	$ 318,463	$ 362,527	$ 383,162	$ 418,796	$ 466,688	$ 467,943	$ 509,701
Caviar product development	3,095	2,759	3,709	4,100	4,711	5,413	5,591	950
Caviar sales and marketing	4,165	3,883	3,428	4,533	5,229	5,593	6,205	1,893
Caviar general and adminstrative	6,338	3,983	7,540	8,976	8,108	8,908	8,949	3,980
Caviar total operating expenses	13,598	10,625	14,677	17,609	18,048	19,914	20,745	6,823
Operating expenses ex-Caviar	$ 262,564	$ 307,838	$ 347,850	$ 365,553	$ 400,748	$ 446,774	$ 447,198	$ 502,878
Operating income (loss), in accordance with GAAP	$ (20,992)	$ (2,647)	$ (9,867)	$ (3,108)	$ (22,042)	$ (843)	$ 32,094	$ 17,348
Caviar operating income (loss)	(7,352)	(1,267)	(4,914)	(6,875)	(6,608)	(6,618)	(8,082)	(2,443)
Operating income ex-Caviar	$ (13,640)	$ (1,380)	$ (4,953)	$ 3,767	$ (15,434)	$ 5,775	$ 40,176	$ 19,791
Adjusted EBITDA (reported)	$ 35,894	$ 68,322	$ 70,997	$ 81,310	$ 61,697	$ 105,304	$ 131,323	$ 118,529
Caviar operating income (loss)	(7,352)	(1,267)	(4,914)	(6,875)	(6,608)	(6,618)	(8,082)	(2,443)
Caviar share-based compensation expense	1,734	1,837	2,254	2,293	2,592	$ 3,483	$ 3,729	$ (685)
Caviar depreciation and amortization	387	539	547	659	657	$ 544	$ 842	$ - 0
Caviar other (income) expense, net	152	(83)	(50)	96	18	$ 336	$ 104	$ 1,018
Caviar Adjusted EBITDA	$ (5,079)	$ 1,026	$ (2,163)	$ (3,827)	$ (3,341)	$ (2,155)	$ (3,427)	$ (2,110)
Adjusted EBITDA ex-Caviar	$ 40,973	$ 67,296	$ 73,160	$ 85,137	$ 65,038	$ 107,459	$ 134,750	$ 120,639
Year-over-year growth metrics
Total net revenue, in accordance with GAAP	43.5%	44.1%	43.6%	40.8%
Total net revenue ex-Caviar	42.4%	45.4%	45.5%	46.2%
Adjusted Revenue	59.4%	46.0%	39.7%
Adjusted Revenue ex-Caviar	58.4%	49.0%	43.3%
Subscription and services-based revenue	125.5%	87.1%	68.3%	45.0%
Subscription and services-based revenue ex-Caviar	147.6%	113.5%	88.6%	77.8%
Gross Profit, in accordance with GAAP	55.5%	47.5%	41.8%	38.7%
Gross Profit ex-Caviar	54.8%	47.7%	42.1%	41.5%
Adjusted EBITDA	71.9%	54.1%	85.0%	45.8%
Adjusted EBITDA ex-Caviar	58.7%	59.7%	84.2%	41.7%
Note: We have included non-GAAP metrics.
Note: Adjusted EBITDA is excluded from both GAAP Revenue and Adjusted Revenue for the margin metrics. Adjusted EBITDA ex-Caviar is excluded from GAAP revenue ex-Caviar and Adjusted Revenue ex-Caviar for margin metrics.