Block Inc
For the period ended Sep 30, 2024. Filed Nov 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 7, 2024
XYZ$85.48+1.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-01.
0001628280-24-034157
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-07.
0001628280-24-046294
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 114 previous paragraphs and 118 current paragraphs.
68 unchanged; 45 reworded; 5 added; 0 removed; 1 previous and 0 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Amortization of customer and other acquired intangible assets for three and nine months ended September 30, 2024 decreased $20.9 million, or 37%, and $10.8 million, or 8%, compared to the three and nine months ended September 30, 2023, respectively, primarily as a result of revisions of certain intangibles' useful lives in the third quarter of 2023. Refer to Note 8, Acquired Intangible Assets within Notes to the Condensed Consolidated Financial Statements for more details.
Current report
Deferred Tax Valuation Allowance
Current report
Deferred income tax assets represent amounts available to reduce income taxes payable on taxable income in future years. Such assets arise because of temporary differences between the financial reporting and tax bases of assets and liabilities, as well as from net operating loss, capital loss, and tax credit carryforwards. We evaluate the realizability of our deferred tax assets on a quarterly basis to determine whether a valuation allowance is necessary and reduce such assets to the amount that is more likely than not to be realized. This evaluation requires significant judgment and involves the consideration of all available positive and negative evidence, including our historical operating results, the existence of cumulative losses in recent years, ongoing prudent and feasible tax planning strategies, and projections of future taxable income. Given our recent results and expected future results in the United States, sufficient positive evidence may exist in a future period to support the conclusion that all or a portion of the valuation allowance will no longer be required. The release would result in the recognition of material federal and state deferred tax assets and a corresponding decrease to income tax expense and the effective tax rate in the period the release is recorded. The timing and amount of the valuation allowance release could vary based on our assessment of all available evidence.
Current report
Accruals and Disclosures for Loss Contingencies
Current report
We are party to various legal proceedings, claims, and regulatory or government inquiries and investigations that arise in the ordinary course of business. Certain of these matters include speculative claims for substantial or indeterminate amounts of damages. Contingent liabilities are difficult to measure, as their measurement is subject to multiple factors that are not easily predicted or projected. Further, additional complexity in measuring these liabilities arises due to the various jurisdictions in which these matters occur, which makes our ability to predict their outcomes highly uncertain. We will accrue a liability when we believe a loss is probable and the amount can be reasonably estimated. Accounting guidance also requires disclosure of a loss contingency matter when, in management’s judgment, a material loss is reasonably possible or probable. Significant judgment is required to determine both the likelihood and the estimated amount of a loss related to such matters. In reaching our conclusions with respect to accrual of a loss or loss contingency disclosure, we take a holistic view of each matter based on these factors and the information available prior to the issuance of our financial statements. Uncertainty with respect to an individual factor or combination of these factors may impact our decisions related to accrual or disclosure of a loss contingency, including a conclusion that we are unable to establish an estimate of possible loss or a meaningful range of possible loss. We update our disclosures to reflect our most current understanding of the contingencies at the time we issue our financial statements. However, events may arise that were not anticipated and the outcome of a contingency may result in a loss to us that differs materially from our previously estimated liability or range of possible loss.
Reworded paragraphs (45)
Previous wording
We delivered strong growth across our primary ecosystems in the second quarter of 2024, with gross profit of $2.2 billion, up 20% year over year.
Current wording
We delivered strong growth across our primary ecosystems in the third quarter of 2024, with gross profit of $2.2 billion, up 19% year over year.
Previous wording
Cash App generated gross profit of $1.3 billion in the second quarter of 2024, up 23% year over year. Performance was driven by strength across our financial services products.
Current wording
Cash App generated gross profit of $1.3 billion in the third quarter of 2024, up 21% year over year. Performance was driven by strength across our financial services products.
Previous wording
Square generated gross profit of $922.6 million in the second quarter of 2024, up 15% year over year, driven by notable strength in our banking products and software and integrated payments.
Current wording
Square generated gross profit of $932.4 million in the third quarter of 2024, up 16% year over year, driven by notable strength in our banking products and software and integrated payments.
Previous wording
In the second quarter of 2024, operating income was $306.6 million and Adjusted Operating Income was $399.1 million, compared to an operating loss of $132.1 million and Adjusted Operating Income of $25.5 million in the second quarter of 2023. For the same period, net income attributable to common stockholders was $195.3 million, compared to a net loss attributable to common stockholders of $102.0 million, and Adjusted EBITDA was $759.5 million, compared to $384.4 million. Net income for the second quarter of 2024 and net loss for the second quarter of 2023 included a loss of $70.1 million and gain of $16.0 million, respectively, from the remeasurement of our bitcoin investment.
Current wording
In the third quarter of 2024, operating income was $323.0 million and Adjusted Operating Income was $443.5 million, compared to an operating loss of $9.9 million and Adjusted Operating Income of $89.7 million in the third quarter of 2023. For the same period, net income attributable to common stockholders was $283.8 million, compared to a net loss attributable to common stockholders of $88.7 million, and Adjusted EBITDA was $807.5 million, compared to $477.5 million. Net income for the third quarter of 2024 and net loss for the third quarter of 2023 included a gain of $5.3 million and loss of $28.2 million, respectively, from the remeasurement of our bitcoin investment.
Previous wording
In 2023, we sharpened our focus on our organizational structure and expenditures with a view to identifying areas where we can be more cost efficient as we focus on disciplined growth and pursuing cost efficiencies. In the second quarter of 2024, we continued to make progress on these goals and we expect to continue these efforts through the remainder of 2024, including implementing greater expense discipline and reassessing certain contractual vendor arrangements. In November 2023, we announced we would implement an absolute cap of 12,000 on the number of employees we have at our company, which we have achieved, and plan to continue to operate below this cap, through a combination of performance management, centralization of teams and functions to reduce duplication, and prioritization of our scope. As of June 30, 2024, we have recorded $125.5 million of severance and other related expenses, of which $3.9 million was recorded in the quarter ended June 30, 2024. We may continue to incur expenses, including restructuring costs, in the short term to implement these initiatives. In the second quarter of 2024, we have begun to realize benefits related to our focus on disciplined growth and cost efficiencies and we expect to continue to benefit from these actions in future periods.
Current wording
In 2023, we sharpened our focus on our organizational structure and expenditures with a view to identifying areas where we can be more cost efficient as we focus on disciplined growth and pursuing cost efficiencies. In the third quarter of 2024, we continued to make progress on these goals and we expect to continue these efforts through the remainder of the year, including implementing greater expense discipline and reassessing certain contractual vendor arrangements. In November 2023, we announced we would implement an absolute cap of 12,000 on the number of employees we have at our company, which we have achieved, and plan to continue to operate below this cap, through a combination of performance management, centralization of teams and functions to reduce duplication, and prioritization of our scope. We may continue to incur expenses, including restructuring costs, in the short term to implement these initiatives. We continue to realize benefits related to our focus on disciplined growth and cost efficiencies and we expect to continue to benefit from these actions in future periods.
Previous wording
During the second quarter of 2024, we issued an aggregate principal amount of $2.0 billion of senior unsecured notes due 2032 ("2032 Senior Notes"). Including the net proceeds from this debt offering after issuance costs, we ended the second quarter of 2024 with $10.3 billion in available liquidity, with $9.5 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities, as well as an undrawn amount of $775.0 million available under our revolving credit facility. This represents an increase of $2.5 billion from the end of 2023.
Current wording
During the second quarter of 2024, we issued an aggregate principal amount of $2.0 billion of senior unsecured notes due 2032 ("2032 Senior Notes"). We ended the third quarter of 2024 with $10.7 billion in available liquidity, with $9.9 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities, as well as an undrawn amount of $775.0 million available under our revolving credit facility. This represents an increase of $3.0 billion from the end of 2023.
Previous wording
On July 25, 2024, our board of directors authorized an increase to this share repurchase program to repurchase up to an additional $3 billion of our Class A common stock. The goal of the program is to return capital to shareholders. The timing and number of shares repurchased will depend on a variety of factors, including the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors.
Current wording
In October 2023, our board of directors authorized the repurchase of up to $1 billion of our Class A common stock. On July 25, 2024, our board of directors authorized an increase to this share repurchase program to repurchase up to an additional $3 billion of our Class A common stock, for a total overall authorization of $4 billion. The goal of the program is to return capital to shareholders. The timing and number of shares repurchased will depend on a variety of factors, including the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors. As of September 30, 2024, we have repurchased $1.1 billion of our Class A common stock under the program, of which $345.6 million was purchased in the third quarter of 2024.
Previous wording
Total net revenue for the three and six months ended June 30, 2024 increased by $620.6 million, or 11%, and $1.6 billion, or 15%, compared to the three and six months ended June 30, 2023, respectively. Bitcoin revenue increased by $220.9 million and $788.2 million for the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023, respectively. Excluding bitcoin revenue, total net revenue increased by $399.7 million, or 13%, and $799.4 million, or 13%, in the three and six months ended June 30, 2024 compared to the three and six months ended June 30, 2023, respectively.
Current wording
Total net revenue for the three and nine months ended September 30, 2024 increased by $358.3 million, or 6%, and $1.9 billion, or 12%, compared to the three and nine months ended September 30, 2023, respectively. Bitcoin revenue increased by $5.0 million and $793.3 million for the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023, respectively. Excluding bitcoin revenue, total net revenue increased by $353.3 million, or 11%, and $1.2 billion, or 13%, in the three and nine months ended September 30, 2024 compared to the three and nine months ended September 30, 2023, respectively.
Previous wording
Transaction-based revenue for the three and six months ended June 30, 2024 increased by $75.3 million, or 5%, and $163.8 million, or 5%, compared to the three and six months ended June 30, 2023, respectively, driven primarily by growth in Gross Payment Volume ("GPV"), which grew by 5% and 6% in the same periods. The growth in Square GPV was driven by improvements in both card-present and card-not-present volumes including strength in online channels. See below in Key Operating Metrics and Non-GAAP Financial Measuresfor further discussion of GPV.
Current wording
Transaction-based revenue for the three and nine months ended September 30, 2024 increased by $53.8 million, or 3%, and $217.6 million, or 5%, compared to the three and nine months ended September 30, 2023, respectively, driven primarily by growth in Gross Payment Volume ("GPV"), which grew by 4% and 5% in the same periods. The growth in Square GPV was driven by improvements in both card-present and card-not-present volumes including strength in online channels. See below in Key Operating Metrics and Non-GAAP Financial Measuresfor further discussion of GPV.
Previous wording
Subscription and services-based revenue for the three and six months ended June 30, 2024 increased by $326.4 million, or 22%, and $642.5 million, or 23%, compared to the three and six months ended June 30, 2023, respectively. This increase was primarily due to growth in Cash App's financial service-related products, including Cash App Card, BNPL platform, Cash App Borrow, Instant Deposit, and Cash App Pay, as well as revenue from Square banking products. Revenue generated from the BNPL platform was $294.0 million and $577.5 million for the three and six months ended June 30, 2024, respectively. Revenue generated from the BNPL platform was $235.4 million and $459.2 million for the three and six months ended June 30, 2023, respectively.
Current wording
Subscription and services-based revenue for the three and nine months ended September 30, 2024 increased by $305.0 million, or 20%, and $947.5 million, or 22%, compared to the three and nine months ended September 30, 2023, respectively. This increase was primarily due to growth in Cash App's financial service-related products, including Cash App Card, BNPL platform, Cash App Borrow, Instant Deposit, and Cash App Pay, as well as revenue from Square banking products. Revenue generated from the BNPL platform was $317.6 million and $895.0 million for the three and nine months ended September 30, 2024, respectively. Revenue generated from the BNPL platform was $257.9 million and $717.1 million for the three and nine months ended September 30, 2023, respectively.
Previous wording
Bitcoin revenue for the three and six months ended June 30, 2024 increased by $220.9 million, or 9%, and $788.2 million, or 17%, compared to the three and six months ended June 30, 2023, respectively. As bitcoin revenue is the total sale amount of bitcoin to customers, the amount of bitcoin revenue recognized will fluctuate depending on customer demand as well as changes in the market price of bitcoin. The increase in the three and six months ended June 30, 2024 was driven by an increase in the average market price of bitcoin, partially offset by a decrease in the quantity of bitcoin sold to customers, compared to the three and six months ended June 30, 2023. While bitcoin contributed 42% and 44% of the total revenue for the three and six months ended June 30, 2024, respectively, gross profit generated from bitcoin was only 3% of the total gross profit for both the three and six months ended June 30, 2024, compared to 2% and 3% of total gross profit in the three and six months ended June 30, 2023, respectively.
Current wording
Bitcoin revenue for the three and nine months ended September 30, 2024 increased by $5.0 million and $793.3 million, compared to the three and nine months ended September 30, 2023, respectively. As bitcoin revenue is the total sale amount of bitcoin to customers, the amount of bitcoin revenue recognized will fluctuate depending on customer demand as well as changes in the market price of bitcoin. The increase in the three and nine months ended September 30, 2024 was driven by an increase in the average market price of bitcoin, partially offset by a decrease in the quantity of bitcoin sold to customers, compared to the three and nine months ended September 30, 2023. While bitcoin contributed 41% and 43% of the total revenue for the three and nine months ended September 30, 2024, respectively, gross profit generated from bitcoin was only 3% of the total gross profit for both the three and nine months ended September 30, 2024, compared to 2% and 3% of total gross profit in the three and nine months ended September 30, 2023, respectively.
Previous wording
Total cost of revenue for the three and six months ended June 30, 2024 increased by $253.2 million, or 7%, and $840.3 million, or 12%, compared to the three and six months ended June 30, 2023, respectively. Bitcoin costs of revenue, which increased by $197.7 million and $735.3 million in the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, respectively, was the primary driver of the increase in total cost of revenue, with the remaining increase related to an increase in Square GPV. Excluding bitcoin costs of revenue, total cost of revenue increased by approximately $55.5 million, or 4%, and $105.0 million, or 4%, in the three and six months ended June 30, 2024, compared to the three and six months ended June 30, 2023, respectively.
Current wording
Total cost of revenue for the three and nine months ended September 30, 2024 increased by $7.1 million and $847.4 million, compared to the three and nine months ended September 30, 2023, respectively. Bitcoin costs of revenue, which increased by $720.5 million for the nine months ended September 30, 2024, compared to the nine months ended September 30, 2023, was the primary driver of the increase in total cost of revenue, with the remaining increase largely related to an increase in Square GPV. Excluding bitcoin costs of revenue, total cost of revenue increased by approximately $21.9 million, or 2%, and $126.9 million, or 3%, in the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, respectively.
Previous wording
Transaction-based costs for the three and six months ended June 30, 2024 increased by $49.5 million, or 5%, and $101.9 million, or 6%, compared to the three and six months ended June 30, 2023, respectively, in line with GPV growth of 5% and 6% in the same periods.
Current wording
Transaction-based costs for the three and nine months ended September 30, 2024 increased by $26.8 million, or 3%, and $128.7 million, or 5%, compared to the three and nine months ended September 30, 2023, respectively, largely in line with GPV growth of 4% and 5% in the same periods.
Previous wording
Subscription and services-based costs for the three and six months ended June 30, 2024 increased by $12.6 million, or 5%, and $18.2 million, or 3%, compared to the three and six months ended June 30, 2023, respectively. The increase in the three and six months ended June 30, 2024 was driven by growth in Cash App's financial service-related products, including Cash App Card and related processing costs and fees, which was partially offset by favorable terms on such processing costs due to a contract renewal executed during the third quarter of 2023.
Current wording
Subscription and services-based costs for the three and nine months ended September 30, 2024 increased by $12.0 million, or 5%, and $30.2 million, or 4%, compared to the three and nine months ended September 30, 2023, respectively. The increase in the three and nine months ended September 30, 2024 was driven by growth in Cash App's financial service-related products, including Cash App Card and related processing costs and fees, BNPL platform, and bitcoin withdrawal fees, which was partially offset by favorable terms on such processing costs due to a contract renewal executed during the third quarter of 2023.
Previous wording
Bitcoin costs for the three and six months ended June 30, 2024 increased by $197.7 million, or 8%, and $735.3 million, or 16%, compared to the three and six months ended June 30, 2023, respectively. Bitcoin costs are comprised of the total amount we pay to purchase bitcoin, which fluctuates in line with bitcoin revenue.
Current wording
Bitcoin costs for the three and nine months ended September 30, 2024 decreased by $14.8 million, or 1%, and increased by $720.5 million, or 11%, compared to the three and nine months ended September 30, 2023, respectively. Bitcoin costs are comprised of the total amount we pay to purchase bitcoin, which fluctuates in line with bitcoin revenue.
Previous wording
Product development expenses for the three and six months ended June 30, 2024 increased by $18.5 million, or 3%, and $112.1 million, or 8%, compared to the three and six months ended June 30, 2023, respectively, primarily due to an increase of $44.7 million and $88.2 million in software and cloud computing infrastructure fees for the three and six months ended June 30, 2024, respectively, as a result of increased capacity needs and expansion of our cloud-based services. Expenses for the three months ended June 30, 2024 were partially offset by a decrease in personnel costs of $15.5 million arising from cost efficiencies realized from the ongoing efforts to reduce headcount and expenditures.
Current wording
Product development expenses decreased by $2.8 million for the three months ended September 30, 2024 compared to the three months ended September 30, 2023, primarily due to a decrease in personnel costs of $52.4 million arising from cost efficiencies realized from the ongoing efforts to reduce headcount and expenditures. This decrease was partially offset by an increase of $42.7 million in software and cloud computing infrastructure fees for the three months ended September 30, 2024 as a result of increased capacity needs and expansion of our cloud-based services. Product development expenses for the nine months ended September 30, 2024 increased by $109.3 million compared to the nine months ended September 30, 2023, primarily due to an increase of $130.9 million in software and cloud computing infrastructure fees as a result of increased capacity needs and expansion of our cloud-based services. This increase was partially offset by a decrease in personnel costs of $24.0 million for the nine months ended September 30, 2024, arising from cost efficiencies realized from the ongoing efforts to reduce headcount and expenditures.
Previous wording
Sales and marketing expenses for the three and six months ended June 30, 2024 decreased by $30.0 million, or 6%, and $82.2 million, or 8%, compared to the three and six months ended June 30, 2023, respectively, primarily due to a decrease in marketing and other advertising costs. The decrease for the six months ended June 30, 2024 was also impacted by a release of estimated chargeback losses of $27.3 million in the first quarter of 2024.
Current wording
Sales and marketing expenses increased by $32.4 million, or 7%, and decreased by $49.8 million, or 3%, for the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, respectively. The increase in sales and marketing expenses for the three months ended September 30, 2024 was driven by charges related to changes to certain contractual arrangements as well as inventory write-offs. These charges were more than offset for the nine months ended September 30, 2024 by a decrease in marketing and other advertising costs as well as release of estimated chargeback losses of $27.3 million in the first quarter of 2024.
Previous wording
General and administrative expenses for the three and six months ended June 30, 2024 decreased by $75.7 million, or 14%, and $37.3 million, or 4%, compared to the three and six months ended June 30, 2023, respectively. The decrease was primarily due to headcount related reductions in personnel costs of $69.7 million and $69.1 million for the three and six months ended June 30, 2024, respectively, as well as a reduction of facilities expenses of $5.7 million and $12.7 million, respectively, for the same periods. The decrease in expenses for the six months ended June 30, 2024 was partially offset by a charge of $32.2 million recognized during the first quarter of 2024 related to adjustments of certain TIDAL acquisition deferred purchase consideration. Additionally, in the second quarter of 2024, we derecognized $15.1 million of certain indemnification assets related to the TIDAL acquisition that was deemed no longer recoverable.
Current wording
General and administrative expenses for the three and nine months ended September 30, 2024 decreased by $5.0 million and $42.3 million compared to the three and nine months ended September 30, 2023, respectively. The decrease was primarily due to headcount related reductions in personnel costs of $69.4 million and $138.5 million for the three and nine months ended September 30, 2024, respectively, as well as a reduction of facilities expenses of $5.0 million and $17.7 million, respectively, for the same periods. The decrease in expenses for the three and nine months ended September 30, 2024 was partially offset by higher legal expenses and other professional fees. Additionally, during the first quarter of 2024, we recognized a charge of $32.2 million related to adjustments of certain TIDAL acquisition deferred purchase consideration. During the second quarter of 2024, we derecognized $15.1 million of certain indemnification assets related to the TIDAL acquisition that were deemed no longer recoverable.
Previous wording
Transaction, loan, and consumer receivable losses for the three and six months ended June 30, 2024 increased by $12.0 million, or 7%, and $49.9 million, or 16%, compared to the three and six months ended June 30, 2023, respectively, primarily due to:
Current wording
Transaction, loan, and consumer receivable losses for the three and nine months ended September 30, 2024 increased by $14.7 million, or 8%, and $64.6 million, or 13%, compared to the three and nine months ended September 30, 2023, respectively, primarily due to:
Previous wording
•an increase in loan losses of $47.7 million and $101.2 million for the three and six months ended June 30, 2024, respectively, primarily due to increased loan volumes; partially offset by
Current wording
•an increase in loan losses of $57.3 million and $158.5 million for the three and nine months ended September 30, 2024, respectively, primarily due to increased loan volumes; partially offset by
Previous wording
•a decrease in transaction losses of $35.6 million and $51.3 million for the three and six months ended June 30, 2024, respectively, primarily due to a release of previously established risk loss provisions related to prior periods.
Current wording
•a decrease in transaction losses of $42.6 million and $93.9 million for the three and nine months ended September 30, 2024, respectively. The decrease in transaction losses is attributable to both an operational outage in the third quarter of 2023, which resulted in higher transaction losses incurred for the three and nine months ended September 30, 2023, as well as a release of previously established risk loss provisions in the second quarter of 2024 related to prior periods.
Previous wording
Interest income, net, for the three months ended June 30, 2024 decreased by $2.1 million compared to the three months ended June 30, 2023, primarily due to an increase in interest expense related to our 2032 Senior Notes issued in the second quarter of 2024, which more than offset an increase in interest income received as a result of higher interest rates and investment balances. Interest income, net, for the six months ended June 30, 2024 increased by $13.5 million compared to the six months ended June 30, 2023, driven by an increase in interest income received as discussed above, partially offset by interest expense related to our 2032 Senior Notes. Refer to Note 12, Indebtedness within Notes to the Condensed Consolidated Financial Statements for further details.
Current wording
Interest expense, net, increased by $35.2 million and interest income, net, decreased by $21.7 million for the three and nine months ended September 30, 2024, compared to the three and nine months ended September 30, 2023, respectively, primarily due to an increase in interest expense related to our 2032 Senior Notes issued in the second quarter of 2024, which more than offset an increase in interest income received as a result of higher interest rates and investment balances. Refer to Note 12, Indebtedness within Notes to the Condensed Consolidated Financial Statements for further details.
Previous wording
Other expense, net, of $59.5 million and other income, net, of $178.3 million for the three and six months ended June 30, 2024, respectively, was primarily driven by a loss of $70.1 million and a gain of $163.3 million from the remeasurement of our bitcoin investment in the respective periods. Refer to Note 11, Bitcoin within Notes to the Condensed Consolidated Financial Statements for further details. Other income, net, of $14.6 million and $92.4 million for the three and six months ended June 30, 2023, respectively, was primarily due to a gain of $16.0 million and $112.1 million, respectively, from the remeasurement of our bitcoin investment in the respective periods, partially offset by unrealized losses on certain marketable and non-marketable investments.
Current wording
Other income, net, of $14.9 million and $193.2 million for the three and nine months ended September 30, 2024, respectively, was driven by gains of $5.3 million and $168.6 million from the remeasurement of our bitcoin investment in the respective periods as well as accretion of investments in marketable debt securities. Refer to Note 11, Bitcoin within Notes to the Condensed Consolidated Financial Statements for further details regarding the remeasurement of our bitcoin investment. Other expense, net, of $23.9 million and other income, net, of $68.4 million for the three and nine months ended September 30, 2023, respectively, was primarily due to a loss of $28.2 million and a gain of $83.9 million, respectively, from the remeasurement of our bitcoin investment in the respective periods, partially offset by unrealized losses on certain marketable and non-marketable investments.
Previous wording
The following table provides a summary of the revenue and gross profit for our Square segment for the three and six months ended June 30, 2024 and June 30, 2023 (in thousands, except for percentages):
Current wording
The following table provides a summary of the revenue and gross profit for our Square segment for the three and nine months ended September 30, 2024 and September 30, 2023 (in thousands, except for percentages):
Previous wording
Revenue for the Square segment for the three and six months ended June 30, 2024 increased by $167.8 million, or 9%, and $342.4 million, or 10%, compared to the three and six months ended June 30, 2023, respectively. The increase was primarily due to growth in Square GPV as well as growth in Square Banking products, which primarily include Square Loans, Instant Transfer, and Square Debit Card.
Current wording
Revenue for the Square segment for the three and nine months ended September 30, 2024 increased by $148.4 million, or 8%, and $490.8 million, or 9%, compared to the three and nine months ended September 30, 2023, respectively. The increase was primarily due to growth in Square GPV as well as growth in Square Banking products, which primarily include Square Loans, Instant Transfer, and Square Debit Card.
Previous wording
Cost of revenue for the Square segment for the three and six months ended June 30, 2024 increased by $49.2 million, or 5%, and $95.2 million, or 5%, compared to the three and six months ended June 30, 2023, respectively. The increase was primarily due to an increase in Square GPV.
Current wording
Cost of revenue for the Square segment for the three and nine months ended September 30, 2024 increased by $21.3 million, or 2%, and $116.5 million, or 4%, compared to the three and nine months ended September 30, 2023, respectively. The increase was primarily due to an increase in Square GPV.
Previous wording
The following table provides a summary of the revenue and gross profit for our Cash App segment for the three and six months ended June 30, 2024 and June 30, 2023 (in thousands, except for percentages):
Current wording
The following table provides a summary of the revenue and gross profit for our Cash App segment for the three and nine months ended September 30, 2024 and September 30, 2023 (in thousands, except for percentages):
Previous wording
Revenue for the Cash App segment for the three and six months ended June 30, 2024 increased by $455.7 million, or 12%, and $1.2 billion, or 18%, compared to the three and six months ended June 30, 2023, respectively. The increase was due to the Cash App items referenced within the Company's overall revenue discussion. While bitcoin revenue contributed 63% and 64% of Cash App revenue for three and six months ended June 30, 2024, respectively, gross profit generated from bitcoin was only 5% and 6% of Cash App gross profit for the three and six months ended June 30, 2024, respectively.
Current wording
Revenue for the Cash App segment for the three and nine months ended September 30, 2024 increased by $215.6 million, or 6%, and $1.5 billion, or 14%, compared to the three and nine months ended September 30, 2023, respectively. The increase was due to the Cash App items referenced within the Company's overall revenue discussion. While bitcoin revenue contributed 62% and 64% of Cash App revenue for three and nine months ended September 30, 2024, respectively, gross profit generated from bitcoin was only 5% of Cash App gross profit for the three and nine months ended September 30, 2024.
Previous wording
Excluding $2.6 billion and $5.3 billion in bitcoin revenue for the three and six months ended June 30, 2024, respectively, Cash App revenue increased by $234.8 million, or 18%, and $456.2 million, or 18%, compared to the three and six months ended June 30, 2023, respectively.
Current wording
Excluding $2.4 billion and $7.8 billion in bitcoin revenue for the three and nine months ended September 30, 2024, respectively, Cash App revenue increased by $210.6 million, or 16%, and $666.8 million, or 18%, compared to the three and nine months ended September 30, 2023, respectively.
Previous wording
Cost of revenue for the Cash App segment for the three and six months ended June 30, 2024 increased by $209.0 million, or 8%, and $749.2 million, or 15%, compared to the three and six months ended June 30, 2023, respectively. The increase was due to the items referenced within the Company's overall cost of revenue discussion. Excluding $2.5 billion and $5.2 billion in bitcoin cost of revenue for the three and six months ended June 30, 2024, respectively, Cash App cost of revenue increased by approximately $11.3 million, or 4%, and $13.8 million, or 3%, compared to the three and six months ended June 30, 2023, respectively.
Current wording
Cost of revenue for the Cash App segment for the three and nine months ended September 30, 2024 decreased by $12.8 million and increased by $736.4 million, compared to the three and nine months ended September 30, 2023, respectively. The decrease for the three months ended September 30, 2024 was primarily due to a decrease in the quantity of bitcoin sold to customers, partially offset by the items referenced within the Company's overall cost of revenue discussion. The increase for the nine months ended September 30, 2024 was due to the items referenced within the Company's overall cost of revenue discussion. Excluding $2.4 billion and $7.6 billion in bitcoin cost of revenue for the three and nine months ended September 30, 2024, respectively, Cash App cost of revenue increased by approximately $2.0 million, or 1%, and $15.9 million, or 2%, compared to the three and nine months ended September 30, 2023, respectively.
Previous wording
•To aid in comparability of our results across periods, we also exclude certain acquisition-related and integration costs associated with business combinations, various restructuring and other costs, and goodwill impairment charges, each of which are not normal operating expenses. Acquisition-related costs include amounts paid to redeem acquirees’ unvested share-based compensation awards, charges associated with holdback liabilities, and legal, accounting, valuation, and due diligence costs. Integration costs include advisory and other professional services or consulting fees necessary to integrate acquired businesses. Restructuring and other costs that are not reflective of our core business operating expenses may include severance costs, contingent losses, impairment charges, and certain litigation and regulatory charges. We also add back the impact of the acquired deferred revenue and deferred cost adjustment, which was written down to fair value in purchase accounting.
Current wording
•To aid in comparability of our results across periods, we also exclude certain acquisition-related and integration costs associated with business combinations, various restructuring and other costs, and goodwill impairment charges, each of which are not normal operating expenses. Acquisition-related costs include amounts paid to redeem acquirees’ unvested share-based compensation awards, charges associated with holdback liabilities, and legal, accounting, valuation, and due diligence costs. Integration costs include advisory and other professional services or consulting fees necessary to integrate acquired businesses. Contingencies, restructuring and other costs that are not reflective of our core business operating expenses may include contingent losses, severance costs, impairment charges, and certain litigation and regulatory charges. We also add back the impact of the acquired deferred revenue and deferred cost adjustment, which was written down to fair value in purchase accounting.
Previous wording
As of June 30, 2024, we had approximately $10.3 billion in available liquidity, with $9.5 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities, which includes net proceeds of approximately $2.0 billion related to the issuance of our 2032 Senior Notes in the second quarter of 2024, as well as an undrawn amount of $775.0 million available under our revolving credit facility subject to compliance with our covenants. Additionally, wehad $507.9 million available to be withdrawn under our warehouse funding facilities. Refer to Note 12, Indebtedness within Notes to the Condensed Consolidated Financial Statements for more details. We intend to continue focusing on our long-term business initiatives and believe that our available funds are sufficient to meet our liquidity needs for the foreseeable future, including the additional $3 billion related to the share repurchase program. As of June 30, 2024, we were in compliance with all financial covenants associated with our revolving credit facility and senior notes. None of our warehouse funding facilities contain financial covenants.
Current wording
As of September 30, 2024, we had approximately $10.7 billion in available liquidity, with $9.9 billion in cash, cash equivalents, restricted cash, and investments in marketable debt securities, which includes net proceeds of approximately $2.0 billion related to the issuance of our 2032 Senior Notes in the second quarter of 2024, as well as an undrawn amount of $775.0 million available under our revolving credit facility subject to compliance with the terms of the credit facility, including our covenants. Additionally, we had $517.8 million available to be withdrawn under our warehouse funding facilities. Refer to Note 12, Indebtedness within Notes to the Condensed Consolidated Financial Statements for more details. We intend to continue focusing on our long-term business initiatives and believe that our available funds are sufficient to meet our liquidity needs for the foreseeable future, including the additional $3 billion related to the share repurchase program. As of September 30, 2024, we were in compliance with all financial covenants associated with our revolving credit facility and senior notes. None of our warehouse funding facilities contain financial covenants.
Previous wording
(i) As of June 30, 2024, the Company has invested $149.2 million of restricted cash into a money market fund. See Note 5, Fair Value Measurements.
Current wording
(i) As of September 30, 2024, the Company has invested $197.1 million of restricted cash into a money market fund. See Note 5, Fair Value Measurements.
Previous wording
As of June 30, 2024, we held approximately 8,211 bitcoins for investment purposes ("bitcoin investment") with a fair value of $514.6 million based on observable market prices, which is included within “Other non-current assets” on the condensed consolidated balance sheets. We believe cryptocurrency is an instrument of economic empowerment that aligns with our corporate purpose. We expect to hold these investments for the long term but will continue to reassess our bitcoin investment relative to our balance sheet. Bitcoin is considered an indefinite-lived intangible asset, and upon adoption of Accounting Standards Update No. 2023-08, Accounting for and Disclosure of Crypto Assets, effective January 1, 2023, our bitcoin investment is remeasured at fair value at each reporting date with changes recognized in net income through “Other expense (income), net” in the condensed consolidated statements of operations. We purchased approximately 173 bitcoins with a cost basis of $11.4 million during the three and six months ended June 30, 2024 for investment purposes. We did not sell any of our bitcoin investment during the three and six months ended June 30, 2024. We recognized a loss of $70.1 million and a gain of $163.3 million from the remeasurement of our bitcoin investment during the three and six months ended June 30, 2024.
Current wording
As of September 30, 2024, we held approximately 8,363 bitcoins for investment purposes ("bitcoin investment") with a fair value of $529.6 million based on observable market prices, which is included within “Other non-current assets” on the condensed consolidated balance sheets. We believe cryptocurrency is an instrument of economic empowerment that aligns with our corporate purpose. We expect to hold these investments for the long-term but will continue to reassess our bitcoin investment relative to our balance sheet. Bitcoin is considered an indefinite-lived intangible asset, and upon adoption of Accounting Standards Update No. 2023-08, Accounting for and Disclosure of Crypto Assets, effective January 1, 2023, our bitcoin investment is remeasured at fair value at each reporting date with changes recognized in net income through “Other expense (income), net” in the condensed consolidated statements of operations. We purchased approximately 152 and 325 bitcoins with a cost basis of $9.7 million and $21.1 million during the three and nine months ended September 30, 2024, respectively, for investment purposes. We did not sell any of our bitcoin investment during the three and nine months ended September 30, 2024. We recognized gains of $5.3 million and $168.6 million from the remeasurement of our bitcoin investment during the three and nine months ended September 30, 2024, respectively.
Previous wording
As of June 30, 2024, we held over $6.2 billion in aggregate principal amount of debt, comprised of $1.0 billion in aggregate amount of convertible senior notes that mature on March 1, 2025 ("2025 Convertible Notes"), $575.0 million in aggregate amount of convertible senior notes that mature on May 1, 2026 ("2026 Convertible Notes"), and $575.0 million in aggregate amount of convertible senior notes that mature on November 1, 2027 ("2027 Convertible Notes," collectively referred to as the “Convertible Notes”), as well as an outstanding $1.0 billion in aggregate principal amount of senior unsecured notes that mature on June 1, 2026 ("2026 Senior Notes"), $1.0 billion in aggregate principal amount of senior unsecured notes that mature on June 1, 2031 ("2031 Senior Notes"), and $2.0 billion in aggregate principal amount of senior unsecured notes that mature on May 15, 2032 ("2032 Senior Notes" and, together with the 2026 Senior Notes and 2031 Senior Notes, the “Senior Notes” and, together with the Convertible Notes, the “Notes”). Refer to Note 12, Indebtedness within Notes to the Condensed Consolidated Financial Statements for further details.
Current wording
As of September 30, 2024, we held $6.2 billion in aggregate principal amount of debt, comprised of $1.0 billion in aggregate amount of convertible senior notes that mature on March 1, 2025 ("2025 Convertible Notes"), $575.0 million in aggregate amount of convertible senior notes that mature on May 1, 2026 ("2026 Convertible Notes"), and $575.0 million in aggregate amount of convertible senior notes that mature on November 1, 2027 ("2027 Convertible Notes," collectively referred to as the “Convertible Notes”), as well as an outstanding $1.0 billion in aggregate principal amount of senior unsecured notes that mature on June 1, 2026 ("2026 Senior Notes"), $1.0 billion in aggregate principal amount of senior unsecured notes that mature on June 1, 2031 ("2031 Senior Notes"), and $2.0 billion in aggregate principal amount of senior unsecured notes that mature on May 15, 2032 ("2032 Senior Notes" and, together with the 2026 Senior Notes and 2031 Senior Notes, the “Senior Notes” and, together with the Convertible Notes, the “Notes”). Refer to Note 12, Indebtedness within Notes to the Condensed Consolidated Financial Statements for further details.
Previous wording
We have warehouse funding facilities ("Warehouse Facilities") with an aggregate amount of$1.5 billion on a revolving basis, of which $945.8 million was drawn as of June 30, 2024. The Warehouse Facilities have been arranged utilizing wholly-owned and consolidated entities (collectively, the "Warehouse Special Purpose Entities (SPEs)") formed for the sole purpose of financing the origination of consumer receivables to partly fund our BNPL platform. Borrowings under the Warehouse Facilities are secured against the respective consumer receivables. While the Warehouse SPEs are included in our condensed consolidated financial statements, they are separate legal entities that maintain legal ownership of the receivables they hold. The assets of the Warehouse SPEs are not available to satisfy our claims or those of our creditors.
Current wording
We have warehouse funding facilities ("Warehouse Facilities") with an aggregate amount of$1.5 billion on a revolving basis, of which $965.8 million was drawn as of September 30, 2024. The Warehouse Facilities have been arranged utilizing wholly-owned and consolidated entities (collectively, the "Warehouse Special Purpose Entities (SPEs)") formed for the sole purpose of financing the origination of consumer receivables to partly fund our BNPL platform. Borrowings under the Warehouse Facilities are secured against the respective consumer receivables. While the Warehouse SPEs are included in our condensed consolidated financial statements, they are separate legal entities that maintain legal ownership of the receivables they hold. The assets of the Warehouse SPEs are not available to satisfy our claims or those of our creditors.
Previous wording
Short-term restricted cash of $597.9 million as of June 30, 2024 primarily includes cash held by the Warehouse SPEs used in the Warehouse Facilities funding arrangements that will be used to pay the borrowings under the Warehouse Facilities or will be distributed to us. It also includes pledged cash deposits in accounts at the financial institutions that process our sellers' payment transactions and collateral pursuant to various agreements with banks relating to our products. We use restricted cash to secure letters of credit with the related financial institutions to provide collateral for cash flow timing differences in the processing of payments. We have recorded these amounts as current assets on our condensed consolidated balance sheet given the short-term nature of these cash flow timing differences and that there is no minimum time frame during which the cash must remain restricted.
Current wording
Short-term restricted cash of $630.9 million as of September 30, 2024 primarily includes cash held by the Warehouse SPEs used in the Warehouse Facilities funding arrangements that will be used to pay the borrowings under the Warehouse Facilities or will be distributed to us. It also includes pledged cash deposits in accounts at the financial institutions that process our sellers' payment transactions and collateral pursuant to various agreements with banks relating to our products. We use restricted cash to secure letters of credit with the related financial institutions to provide collateral for cash flow timing differences in the processing of payments. We have recorded these amounts as current assets on our condensed consolidated balance sheet given the short-term nature of these cash flow timing differences and that there is no minimum time frame during which the cash must remain restricted.
Previous wording
Long-term restricted cash of $71.2 million as of June 30, 2024 is primarily related to cash held as collateral as required by the Federal Deposit Insurance Corporation ("FDIC") for Square Financial Services. We have recorded these amounts as non-current assets on our condensed consolidated balance sheet as the requirement by the FDIC specifies a time frame of 12 months or longer during which the cash must remain restricted.
Current wording
Long-term restricted cash of $69.9 million as of September 30, 2024 is primarily related to cash held as collateral as required by the Federal Deposit Insurance Corporation ("FDIC") for Square Financial Services. We have recorded these amounts as non-current assets on our condensed consolidated balance sheet as the requirement by the FDIC specifies a time frame of 12 months or longer during which the cash must remain restricted.
Previous wording
For the six months ended June 30, 2024, cash provided by operating activities was $1.0 billion, comprised of net income of $660.7 million, adjusted for non-cash expenses of $1.2 billion, consisting primarily of share-based compensation; transaction, loan, and consumer receivable losses; depreciation and amortization; and non-cash lease expenses, all of which contributed positively to operating activities. These were partially offset by the amortization of discounts and other non-cash adjustments on consumer receivables of $537.8 million; bitcoin remeasurement of $163.3 million; net outflows from loan products of $326.1 million. Changes in other assets and liabilities, including settlements receivable and customers payable, of $158.9 million contributed positively and was primarily due to the timing of period end.
Current wording
For the nine months ended September 30, 2024, cash provided by operating activities was $1.7 billion, comprised of net income of $941.8 million, adjusted for non-cash expenses of $1.9 billion, consisting primarily of share-based compensation; transaction, loan, and consumer receivable losses; and depreciation and amortization, all of which contributed positively to operating activities. These were partially offset by the amortization of discounts and other non-cash adjustments on consumer receivables of $824.2 million; net outflows from loan products of $467.8 million; and bitcoin remeasurement of $168.6 million. Additionally, there were net inflows related to changes in other assets and liabilities, including settlements receivable and customers payable, of $358.3 million due to the timing of period end.
Previous wording
For the six months ended June 30, 2023, cash provided by operating activities was $407.7 million, comprised of net loss of $9.6 million, adjusted for non-cash expenses of $1.2 billion, consisting primarily of share-based compensation; transaction, loan, and consumer receivable losses; depreciation and amortization; non-cash lease expense; and losses on revaluation of equity investments, all of which contributed positively to operating activities. These were partially offset by bitcoin remeasurement of $112.1 million; amortization of discounts and other non-cash adjustments on consumer receivables of $221.7 million; net outflows from loan products of $179.9 million; as well as changes in other assets and liabilities, including settlements receivable, customers payable, and settlements payable, of $313.8 million, primarily due to the timing of period end.
Current wording
For the nine months ended September 30, 2023, cash provided by operating activities was $898.9 million, comprised of net loss of $103.1 million, adjusted for non-cash expenses of $1.9 billion, consisting primarily of share-based compensation; transaction, loan, and consumer receivable losses; depreciation and amortization; non-cash lease expense; and losses on revaluation of equity investments, all of which contributed positively to operating activities. These were partially offset by the amortization of discounts and other non-cash adjustments on consumer receivables of $357.1 million; net outflows from loan products of $320.9 million; a change in deferred income taxes of $86.6 million; bitcoin remeasurement of $83.9 million; as well as changes in other assets and liabilities, including settlements receivable, customers payable, and settlements payable, of $13.1 million, primarily due to the timing of period end.
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Previous report — wording carried elsewhere
In October 2023, our board of directors authorized the repurchase of up to $1 billion of our Class A common stock. As of June 30, 2024, we have purchased $798.4 million of our Class A common stock under this program, of which $389.5 million was purchased in the second quarter of 2024. The program was completed as of July 31, 2024.