Thread by @tpsojda

1) Recap 🧵of @Square CEO @jack & brilliant CFO @amritaahuja speaking at @jpmorgan Global Technology, Media and Communications Conference today $SQ

@MaxTheComrade @caleb_investTML @InvestmentTalkk @alexkagin @BarbarianTrades @mukund @StockMarketNerd @Matt_Cochrane7 @ParrotStock

2) HAS COVID IMPACTED PRIORITIES?
🌀 @Jack priorities have not changed but dev velocity has improved mightily.
🌀 @CashApp DD work pulled up to get stimulus to Americans
🌀Focus/magic is how to connect 3 ecosystems together: Seller, @Cashapp, @TIDAL

3) APPEAL TO NEW AUDIENCES:
🌀 @CashApp / Seller: understand needs of customers & building ahead of that to broaden utility of ecosystem
🌀Meet underserved customers/markets, like in SE US, gaining better risk/security controls to open up🚪's comp. to peers

4) CULTURE
🌀 @cashapp is inherently social, "done very little to seize opportunity" per @jack but will be focus
🌀Continue to broaden utility and products and intuitively connect ecosystems that appear to broader audience and becoming more mainstream

5) 📈MONETIZATION & ARPU
🔑Growing ARPU related to customers finding increased value in ecosystem of products:

👀3 Opportunities to 📈 ARPU per @amritaahuja
(1) Cross-sell existing products
(2) Increasing Daily Utility
(3) New products

6) CROSS-SELL:
🌀📈 product adoption for multiple prod per user
🌀most attached prod is Cash Card w/ 10m MAUs in Mar (1/4 of current MAU base) w/ 7m trans weekly users
🌀 Users using 2+ products 3-4x 📈gross profit than 1 or < (GP annual $100+ / user using 2+)

7) x-sell (cont): using marketing/notifications to 🎯higher LT value / income users to x-sell in to over time

📈 DAILY UTILITY:
🌀📈network effect in @CashApp and utility drives 📈engagement w/ each product over time
🌀Volume per cust 📈 greatly (e.g., 📈40% on Cash Card Y/Y)

8) NEW PROD:
🌀scaling quick, now 4 rev streams w/ $100M+ in annual GP, w/ each 📈 over 100% Y/Y. 🔺from 1 in 2019 <- Attrib to prod market fit & 🏋️of network effects -> becoming self-reinforcing
🌀New prod like @CreditKarmaTax, pay w/💰, & lending - inning 1 on opportunity

9) INFLOWS are🔑
🔑 @jpmorgan surveys show extreme interest in DD
🌀Focused on @CashApp w/ DD during COVID stim check, tax refunds, and unemployment benefits ->surfaced it much higher in UI to get more utility out of it right away to help Americans

10) INFLOWS (cont):
🌀Focused on solving 2 constraints (1) Limits & (2) Other ways to deposit money
🌀Limits maxed at $7.5k/week - int for much more, using deep learning/ML, risk compliance to⬆️limits
🌀Deposit 💰: no ACH, cant deposit money via physical location into @CashApp

11) INFLOWS (cont):
👀 3 opportunities:
(1) 📈network base
(2) 📈adoption -> 📈engagement -> 📈inflows
(3) 📈 spending power -> 📈 funds (govt disbursements, tax refunds, boost -> virtuous circle to further grow base and ARPU

12) ROI:
🔑Continue to invest & see 📈 ROI
🌀Each tailwind reinforces 1 another (1) strong acquisition of customers (2) 📈 engagement (3)📈 in spending power
🌀@cashapp GP 📈 171% in Q1, lays foundation
🌀 ROI hist. 6x+ on acq spend over 3 yr period, recent 2021 cohorts even🔺

13) ROI (cont):
🌀Engagement Q1 monthly actives transacted over 18x/month & 40% Y/Y, which is at a ATH
🌀Spending power: inflows up 55% M/M🔺from 16% in Apr. @CashApp 📈130% in Apr Y/Y and 2 yr CAGR basis (comps will get tougher in May/Jun -> focused on 📈user base & engagement)

14) SELLER:
@jpmorgan 👀 $SQ seller 📈 faster than $V & $MA benchmark metrics despite sluggish SMB/SME data
🌀GPV 📈 2 yr CAGR of 21% in Apr up 16% in Q1
🌀Attrib. to existing seller ret, new seller acq, & 📈in 🔑strat areas like mix-shift to larger sellers online & international

15) SELLER (cont):
🌀Existing seller ret: normalized to pre-COVID levels, Mar/Apr GPV back to 2019 levels, recent cohorts even🔺
🌀New seller acq: onboarded largest cohort of sellers, newly acq cohorts show 📈GP among all annual sellers <- larger & omnichannel sellers mix-shift

16) SELLER (cont):
🌀Progress in mix-shift: larger sellers mid-market sellers GPV up 43% Y/Y in Q1, twice as fast as overall seller GPV (30% of total seller GPV)
🌀Online channels sustained 50%+ GPV📈last 2 yrs
🌀International GPV 📈80% in Q1 indexing better on larger sellers

17) MIX-SHIFT:
🔑Cause of shift to larger sellers: quality of tools & breadth of ecosystem <- larger & small sellers value connectivity
🌀Sellers need an avg of 17 different vendors to get business running, where $SQ is a one-stop-shop

18) MIX-SHIFT (cont):
🌀Platform/API: same API used by $SQ internally as what's offered & used by external developers creating standardization
🌀Creates cohesion & flexibility to tailor & build business where they are & where they want to go

19) MIX-SHIFT (cont):
Continue to focus on key attributes of development to build and strengthen tools that are:
(1) Fast
(2) Cohesive
(3) Elegant
(4) Self-serving
**Core attributes create value to sellers of all sizes

20) SALES & MKT:
🔑📈seller ecosystem & also evolving marketing to drive incremental 📈 to seller platform who wouldn't onboard themselves.
🌀Historically focused on organic acq & inbound leads from referrals & performance mkt
🌀📈S&M spend by 45% Y/Y in 2021 & focused on mix

21) SALES & MKT (cont):
(1)📈of performance mkt - gen direct leads & conversions combined w/
(2) Driving Brand & Awareness to broad ecosystem of 30+ prod
(3)📈Sales team & leveraging ML/data to 1x outbound sales vs inbound &📈prod adoption by 15% in mid-market sellers by x-sell

22) SALES & MKT:
🔑remain data driven & regularly evaluate efficiency of spend by mix & seller size & vertical
🌀shift spend dynamically, pacing at 5Q payback on 2020 S&M spend - intended to drive📈w/ larger sellers
🌀See <1% penetrated in broader up-market seller opportunity

23) INTERNATIONAL EXP
🔑sleeping giant for📈 (80% Y/Y growth in Q1)
🌀📈new market exp like 🇮🇪 & 🇪🇸; goal is to scale products available in 🇺🇸 to international markets
🌀 @cashapp has "ton of potential" per @jack (#1 finance app in 🇺🇸 and top 10 in 🇬🇧)

24) @TIDAL :
On #NFT per @jack: spirit is correct, lots of trash, ? is how an artist earns rev & what capabilities they have in doing so
🌀 @TIDAL acq may appear as a "weird one" per @jack but saw oppt as artists/creators were being underserved the same ways sellers are

25) @TIDAL (cont):
🌀Artists req same🔧to 📈 their careers as businesses (👀them exp. w/ #NFT, e-com, sponsorships w/ @CashApp to📈 fan base)
🌀"streaming market is saturated but artist🔧is not" per @jack <- there in lies the oppt 👀synergies w/ intersection of @CashApp & Seller

Copying the rest of the crew: @qcapital2020 @SatoshiAlien @InvestiAnalyst @rnebhwani @LukeDonay @HeroDividend @dhaval_kotecha @fatbabyfunds @SixSigmaCapital @WOLF_Financial @NatHarooni @PelotonHolder @plantmath1 @Soumyazen @skaushi @gannonbreslin @MrsVipPat

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