HOT SAMS

Detroit, MI

December 2020
Company Overview
SQUARE.COM/INVESTORS CASH BOOST
Cautionary statement

This document contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which statements
involve substantial risks and uncertainties. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, statements regarding possible or assumed future
performance and results of operations; the business plans and strategies of Square, Inc. and its consolidated subsidiaries (the “Company”); future growth and growth rates in the Company’s businesses, products, and
services; the Company’s ability to cross-sell and up-sell its products; the Company's ability to maintain and/or improve upon its prior performance metrics, including its historic transaction loss rates, acceptance rates, and
gross profit retention rates; information concerning expansion into new markets and total addressable market opportunity; and trends in the Company's markets, business and financial and operating metrics. Such
statements are subject to a number of risks, uncertainties, assumptions, and other factors that may cause the Company’s actual results, performance, or achievements to differ materially from results expressed or implied
in this document. Investors are cautioned not to place undue reliance on these statements. In addition, our historical reported results should not be considered as an indication of future performance.

Risks that contribute to the uncertain nature of the forward-looking statements include, among others, risks associated with: uncertainty around COVID-19 and the effects of government and other measures seeking to
contain its spread; an economic downturn or recession in the United States and in other countries around the world; developing and delivering products and services to address the rapidly evolving market for payments
and point-of-sale, financial, and marketing services; the Company’s ability to create and monetize an ecosystem of products for its Cash App; the Company’s ability to expand its product portfolio and market reach and
deal with the substantial and increasingly intense competition in its industry; the Company’s ability to ensure interoperability of its technology with that of third parties; the Company’s ability to retain existing customers,
attract new customers, and increase sales to all customers; changes to the rules and practices of payment card networks and acquiring processors; the Company’s history of generating net losses; possible fluctuations in
the Company’s results of operation and operating metrics; and the effect of management changes and business initiatives, as well as other risks listed or described from time to time in the Company's filings with the
Securities and Exchange Commission (the “SEC”), including the Company’s most recent filing on Form 10-K, which is on file with the SEC and available on the investor relations page of the Company's website. All forward-
looking statements are based on information and estimates available to the company at the time of this document and are not guarantees of future performance. Except as required by law, the Company assumes no
obligation to update any of the statements in this document.

This document includes certain non-GAAP measures not based on generally accepted accounting principles. These non-GAAP measures are in addition to, not a substitute for or superior to, measures of financial
performance prepared in accordance with GAAP. The non-GAAP measures used by the Company may differ from the non-GAAP measures used by other companies. Reconciliations between GAAP and these non-GAAP
measures are included in the appendix to this document.
We are growing two significant ecosystems

3
 Gross Profit
Seller Gross Profit Cash App Gross Profit

$1,226M

Strong growth at scale $458M

50% five-year CAGR

$195M
$47M
$5M

$345M $564M $777M $1,072M $1,390M $1,508M

2015 2016 2017 2018 2019 2020

Caviar gross profit has been excluded for all periods. CAGR represents the compound annual gross profit growth rate from 2015 to 2020. 4
Addressing significant market opportunities…
SELLERS INDIVIDUA LS

$ $
100B+ 60B+
…with significant runway to grow share in each ecosystem

<3% <2%
PE NE TRATE D O F $100B+ PEN ETRATED OF $6 0B +
OP PORTUNIT Y OPPORTUN ITY

Penetration within each of the Seller and Cash App ecosystems is calculated based on the sum of 2019 transaction-based gross profit, bitcoin gross profit, and subscription and services-based revenue as 5
applicable within each ecosystem as a percentage of the overall market opportunity for each ecosystem.
Total
Addressable
Market
Seller ecosystem represents a $85B+ opportunity in the U.S.

~20M BUS INES S ES

$
6T
GROSS RECEIPTS
85B+
$
U. S . TAM
OPPORTUN ITY

Sources: 2012 U.S. Census, U.S. Bureau of Labor Statistics 7

For further information on how we calculate number of "Businesses", "Gross Receipts", and the "U.S. TAM Opportunity", please see Appendix.
Seller ecosystem represents a $85B+ opportunity in the U.S.

$85 B+ OP PORTUNITY

$
39B + $
30B + $
12B + $
5B
TRA NSAC TION SOFT WARE SQ UARE CAPITAL FIN ANCIAL
PROF I T SE RVICES

Sources: Square internal company data, 2012 U.S. Census, FDIC, Goldman Sachs—Future of Finance, Mastercard 2019-2020 U.S. Region Interchange Programs and Rates, Forbes: Small Business Credit Card 8
Trends And Their Future, The Nilson Report (Issue #1166), International Monetary Fund: “Shadow Economies Around the World: What Did We Learn Over the Last 20 Years?”
For further information on how we calculate “Transaction Profit” opportunity and “Software”, “Square Capital”, and “Financial Services” revenue opportunity please see Appendix.
…and $100B+ opportunity with multiple vectors for future growth

Medium-Term Long-Term

> 85B
$16 B TRANSACTION

$
PROFI T IN CURREN T
NE W MARKE TS
INTE RNATIONA L
MARKE TS

+ +
U. S . R EVENUE
OPPORTU NI TY TODAY
NEW PROD UCTS E XPAND FURTHER
AND USE CAS ES UPMARKET

Sources: The Nilson Report (Issue #1166), Euromonitor 9

For further information on how we calculate “Transaction Profit in Current International Markets” opportunity, please see Appendix.
Significant opportunities in serving larger sellers

Seller Size U.S. Sellers U.S. Gross Sales

23K
Enterprise $100M+ $6.2T

$20M-$100M 43K $1.3T

Mid Market
Additional
$1M-$20M 879K $3.0T Area of Focus
beyond Micro

SMB $250K-$1M 2.7M $1.2T

<$250K $446B
Micro 15.3M

Sources: 2012 U.S. Census, U.S. Bureau of Labor Statistics 10

"Seller Size" is based on U.S. Census data classified by annual gross receipts for a given business.
“U.S. Sellers” opportunity in the US is based on employer and non-employer firms with less than $100 million in annual gross receipts in select industry verticals based on 2012 U.S. Census data.
“U.S. Gross Sales” opportunity based on U.S. Census data as of 2012, adjusted for inflation through 2019 based on CPI from the U.S. Bureau of Labor Statistics.
Cash App ecosystem has a large opportunity in consumer financial
services: $9 trillion in addressable volume in the U.S. alone

$
4T
SENDI NG
$
2T
SPEND ING
$
3T
INVESTING

Sources: Square internal company data, U.S. Census, International Monetary Fund: “Shadow Economies Around the World: What Did We Learn Over the Last 20 Years?”, PayPal, Early Warning Services, The 11
Nilson Report (Issue #1166), U.S. Securities and Exchange Commission: “The Evolving Market for Retail Investment Services and Forward-Looking Regulation — Adding Clarity and Investor Protection while
Ensuring Access and Choice”, Barber and Odean: “The Behavior of Individual Investors”
For further information on how we calculate the “Sending”, “Spending”, and “Investing” volume opportunity, please see Appendix.
Cash App ecosystem represents a $60B+ revenue opportunity in the U.S.

$60 B+ OP PORTUNITY

$
20B + $
41B + $
2B
SENDING SPEND ING INVESTING

Sources: Square internal company data, The Nilson Report (Issue #1166), Visa USA Interchange Reimbursement Fees, CoinMetrics 12
For further information on how we calculate the "Sending", "Spending", and "Investing" revenue opportunity, please see Appendix.
With multiple vectors for future growth

> 60B
Medium-Term Long-Term

$
+ NEW PROD UCTS
AND U SE CASES + NE W MARKE TS

CASH A PP REVENUE
OPPORTU NI TY TODAY

13
 • Strong aspirational brands with word-of-mouth

• Remarkable products with rapid development and improvements

Multiple • Elegant design to enable self-serve experience
differentiators across
Seller and Cash App • Integrated and scalable technology platform
ecosystems • Scaled acquisition with strong returns on investment

• Ability to drive higher engagement and graduate customers to

broader ecosystem of products

14
Seller Ecosystem
Square is building a unique ecosystem of products and services
As sellers and individuals use more services, their activity with Square increases, reinforcing our recurring revenue model.

MANAGED PAYMENTS POS + BUSINESS TOOLS VERTICAL SPECIFIC SOFTWARE FINANCIAL SERVICES

Payments Services Access to Funds

(In-person and online) Square Point of Sale Customers (Appointments, Invoices, Virtual Terminal) (Instant Deposit, Square Card)
(Marketing, Loyalty, 

Gift Cards)

Hardware
Retail Payroll
(Square for Retail)

Employee Tracking
& Reporting eCommerce
(Team Management} (Square Online Store)

Risk Management + Disputes Food + Drink Financing

(Square Capital, Installments)
(Square for Restaurants)

PLATFORM
(Integration & Customization Tools)
Payments API Integrations Commerce APIs & Integrations Partner App Marketplace
(Reader SDK, in App Payments SDK, eComm API) (8 APIs including Employees API, Inventory
API, and Customers API)
16
 Seller Gross Profit by Product Category
Sidecar payments Software & integrated payments Capital Instant Transfer & Square Card

Evolving mix to
software, integrated
payments, and
financial services

2016 2017 2018 2019 2020

Seller gross profit mix does not include hardware gross profit losses. 17
A platform for developers to meet sellers’ needs

E-COMME RCE THIR D-PARTY A PPS IN- HOUSE

Integrate Square on websites, Integrate Square with third-party Integrate Square into a seller’s
enabling sellers to manage offline apps and back-office solutions specialized POS to accept payments
and online businesses. that bring additional functionality. and access other services.

W IX M AGENTO Q UI CKB O O KS TO U CH B IS T R O H A M PTON JI T N E Y P H IL Z CO FFE E

E-COM ME R CE E-COMMER C E ACCO U N T I N G P OI NT O F SAL E T R AN S P O RTAT I O N CO F F E E HO US E

WO OCO M MER CE GO DADDY PO ST MAT E S MA ILC HI M P L AS E R AWAY T H E R E A L R E AL

E-COM ME R CE E-COMMER C E DE LI V ERY M A R K E T IN G H E ALT H & B E AU T Y LU X U RY FAS H IO N

18
 Scalable go-to-market strategy…

BRAND MARKETI NG SALES RE TAIL PARTNER S RE TENTION

DISTRIBUTION

We lead with a strong We focus on direct and Our direct sales and Square hardware We work with third- We take a systematic
brand. Our high NPS of scalable marketing account management products are available at party developers who approach to growth
64 means our sellers channels both online and teams contribute to the thousands of retail offer our solutions to and retention
recommend our services offline. acquisition and support stores. their customers. marketing with
to others. of our larger sellers. machine learning as
These include online the underpinning
SEO, display advertising, engine.
direct mail, television,
mobile, and affiliate and
seller referral programs.

Net Promoter Score (NPS) represented as a trailing four-quarter average ended December 31, 2020. 19
Why Seller wins: Unique assets, difficult to copy, and at scale
FO CU S ON TECH NOLOGY
Integrated, end-to-end: hardware, software, payments, and data
AN D D E S I G N

B R EA DT H OF MA NAG ED
Comprehensive, full-service offering that helps sellers manage the entire payment life cycle
PAYM EN T S

D I F F E R E NTI ATED R I SK
Automated risk assessment using machine learning while maintaining high acceptance rates
M AN AGE M E NT

OM N I- C HA NNE L CAPABI LI TI ES Powerful solutions that enable sellers to engage with buyers wherever they are

OP EN PL ATFOR M Flexible platform expands functionality that benefits sellers, developers, partners, and Square

ST R ON G B RAN D Net promoter score of 64, ~2x the average for banking service providers

B R EA DT H AN D EFF I CI ENCY
Self-serve onboarding and ubiquitous and scalable distribution channels
OF GO -TO -M AR KET

G R OW T H $427 million in gross profit during Q4 2020, up 13% year over year

Square Net Promoter Score (NPS) is for the U.S. and is represented as a trailing four-quarter average ended December 31, 2020. Banking NPS calculated by Satmetrix Systems, Inc., a third-party research 20
firm, as of 2018.
Profit exceeded initial
sales and marketing in
four quarters
Q1 2015 Cohort
Sales and Marketing Expense Cumulative Cohort Gross Profit

$
33M
IN CUM UL ATI VE GROSS
$33M

PROFIT I N F OUR QUART ERS

($32M)

Q1 Q2 Q3 Q4 Q1
2015 2016

Sales and marketing shown above represents "Seller Go-to-Market Spend" in Q1 2015, as defined on slide 25. Cumulative cohort gross profit is based on the Q1 2015 cohort of sellers. 21
...and continued to grow
thereafter
Q1 2015 Cohort
Sales and Marketing Expense Cumulative Cohort Gross Profit

$172M

$
172M
IN CUM UL ATI VE GROSS
PROFI T IN FIVE YEARS

($32M)
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 
 Q2 Q3 Q4 Q1
 Q2 Q3 Q4
2015 2016 2017 2018 2019

Sales and marketing shown above represents "Seller Go-to-Market Spend" as defined on slide 25. Cumulative cohort gross profit is based on the Q1 2015 cohort of sellers. 22
 6

4
Efficient paybacks and
positive retention have

ROI
3

driven strong customer

lifetime value and 2

return on investment
1

0
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Months after joining

Monthly cohorts shown are from Q1 2014 to Q4 2020. 23

Maintained payback period even as we have grown larger sellers

Seller Go-to-Market Spend Growing GPV from Larger Sellers

Payback period $125K–$500K Annualized GPV >$500K Annualized GPV
5

Quarters
2

$122M
$122M $387M
$265M
Q4 Q4 Q4 Q4 Q4 Q4 

2015 2016 2017 2018 2019 2020 2015 2016 2017 2018 2019 2020

Payback period on gross profit measures the effectiveness of "Seller Go-to-Market Spend" for a seller cohort. "Seller Go-to-Market Spend" represents sales and marketing expenses for the Seller ecosystem, 24
excluding the portion of sales and marketing expenses from the legacy Weebly business. A seller cohort represents the new sellers onboarded to Square during a given period.
Strong gross profit retention has led to recurring revenue streams

Gross Profit by Cohort

2020 Cohort
Positive gross profit
retention for every 2019

cohort from 2012 to

2019 2018

2017

Pre-2017 Cohort

2017 2018 2019 2020

Gross profit retention rate is calculated as the year-over-year gross profit growth of a quarterly seller cohort, averaged over the last four quarters (excluding gross profit from hardware, Gift Cards, Caviar, 25
and Weebly prior to the acquisition). We do not include hardware or gift cards because they are typically non-recurring in nature, and we view hardware as an acquisition tool and not a profit center for our
business. Each of our quarterly and annual cohorts had exhibited positive overall retention on aggregate from their date of onboarding through December 31, 2020.
Cash App Ecosystem
Why Cash App wins: differentiated platform allow customers to easily
send, spend, store and now invest money
ST R ON G N E TWORK EF F ECTS More than 36 million monthly customers transacting >15x per month on average

More than 7 million Cash Card actives, up 2x year over year, transacting multiple times per
E N GAGE M E NT
week on average

Innovating quickly with launch of Cash Card, direct deposit, ATM withdrawals, cross-border,
P R O D U C T V E LOC I TY
and buying and selling both bitcoin and fractional equities

E F F IC IE N T CUSTOMER Less than $5 acquisition cost for a transacting active customer driven by virality of peer-to-
ACQU IS IT I O N peer payments, strong brand and streamlined on-boarding flow

H E ALT HY COHORT Over 130% gross profit retention for the past three years of annual cohorts with greater than 6x
ECONOM I C S returns on investment over three years

R A PI D G R OW TH I N
$377 million in gross profit during Q4 2020, up 162% year over year
M ON E T IZ ATI ON

27
36 million monthly transacting actives as of December 31, 2020. Monthly transacting active customers includes Verse customers, which was immaterial. Cash Card actives are as of June 30, 2020.
Cash App Revenue Model

CAS H APP R E V E N UE

AC T IV E CU S TO M E R S ( # ) RE VE NUE P ER C USTOME R ($)

PR ODUCT
ACQU IS I TI O N RE T ENTI ON W I NBACK EN GAGEM EN T M ON ETIZATION
ADOPTION

28
 Revenue Streams
Sending Spending Investing

We have driven
growth across a
diversity of services
and revenue streams

2015 2016 2017 2018 2019 2020

Sending equals revenue from Instant Deposit, Cash for Business, and P2P transactions funded with a credit card. Spending equals revenue from transaction fees on Cash Card, and interest on customer 29
funds. Investing equals bitcoin gross profit.
 Monthly Transacting Actives

36M

Our network of
monthly transacting 24M
actives has increased
10x over the past four
years 15M

7M
1M 3M
DEC 2015 DEC 2016 DEC 2017 DEC 2018 DEC 2019 DEC 2020

A monthly transacting active is defined as a Cash App customer who has one cash inflow or outflow during a given monthly period. Types of cash inflows or outflows include the following: sending or 30
receiving a P2P transfer, making a direct deposit, withdrawing from an ATM, cashing in or out, buying or transferring bitcoin, buying or selling a stock, making a Cash Card payment, sending or receiving a
Cash for Business payment.
Profit exceeded
acquisition spend in
less than 12 months
June 2017 Cohort
Acquisition spend Cumulative Cohort Variable Profit

$
1.6M
$1.6M

IN CUMUL ATI VE CO HO RT
VAR IABLE P ROF I T A F TE R
TWELVE MONTHS

($1.4M)

JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
2017 2018

June 2017 acquisition spend uses the average monthly spend for 2017 to adjust for timing of spend during the year, and is representative of actual June 2017 spend. Cumulative cohort variable profit is based 31
on the June 2017 monthly cohort of customers. For definitions of Cash App payback period, acquisition marketing spend, cohort variable profit, and cumulative variable profit see Appendix.
…and continued to
grow thereafter
June 2017 Cohort
Acquisition spend Cumulative Cohort Variable Profit $7.7M

$
7.7M
IN CUMUL ATI VE CO HO RT
VAR IABLE PROF I T A F TER 2. 5
YEARS

($1.4M)
JUN AUG OCT DEC FEB APR JUN AUG OCT DEC FEB APR JUN AUG OCT DEC FEB
2017 2018 2019 2020

June 2017 acquisition spend uses the average monthly spend for 2017 to adjust for timing of spend during the year, and is representative of actual June 2017 spend. Cumulative cohort variable profit is based 32
on the June 2017 monthly cohort of customers. For definitions of Cash App payback period, acquisition marketing spend, cohort variable profit, and cumulative variable profit see Appendix.
 16

14

12

Efficient paybacks and 10

positive retention have

ROI
8

driven strong customer

lifetime value and 6

return on investment 4

0
0 6 12 18 24 30 36

Months

Return on investment (ROI) is calculated by dividing a given Cash App monthly cohort’s cumulative variable profit by acquisition spend for the initial month when onboarded. For a more comprehensive 33
definition of cohort variable profit and acquisition spend, please see Appendix.
ROIs are presented for the monthly periods from January 2017 through November 2020, using actual monthly acquisition spend for each period and not annual averages, and ROIs are impacted by the timing
of acquisition expenses during the year. Payback periods for monthly Cash App cohorts have been less than 12 months on average from 2017 through 2020.
Strong gross profit retention has led to recurring revenue streams
Gross Profit by Cohort

2020 Cohort

>130% gross profit retention 2019

for each annual cohort over

the past three years

2018

2017

Pre-2017 Cohort

2017 2018 2019 2020

Annual gross profit retention is calculated as the year-over-year gross profit growth of an annual Cash App customer cohort, excluding contra revenue and interest income. A customer’s annual cohort is 34
determined based on the date they were first ever a transacting active on the platform. Each of our annual Cash App cohorts since 2015 and for the pre-2015 cohort have exhibited positive overall gross
profit retention on aggregate from their date of onboarding through December 31, 2020.
 Cohort Revenue Mix Before and After Cash Card
January 2019 Cohort
Cash Card, Bitcoin, & Other Revenue Instant Deposit

Graduating customers
to Cash Card can drive
meaningful uplift in
revenue

Before adopting Cash Card (6 mos.) After adopting Cash Card (6 mos.)

Cohort revenue mix is based on the cohort of customers who adopted Cash Card in January 2019. The periods presented are 6 months prior to adoption of Cash Card (July 2018 through December 2018) and 35
6 months after adoption (January 2019 through June 2019). Revenue includes transaction-based gross profit, bitcoin gross profit, and subscription and services-based revenue from Cash App.
Engagement with additional products has driven higher customer lifetime
value

DIRECT DE POSIT
CASH CARD
PEER-TO-PE ER STOCKS
BO OST
BITCOIN

36
square.com/investors
 Appendix
Footnotes and GAAP Reconciliation
Broad portfolio of Seller products with multiple monetization levers

Subscription and
Transaction-based Hardware
services

S ID ECA R PAY M EN TS POS App with payments usage only

Invoices, Virtual Terminal, Developer, APIs/SDKs, Third

Party Apps

S O F T WARE AN D
Square for Retail, Restaurants, Appointments, Square
IN T EG R AT ED PAY M ENTS
Online Store

Team Management, Marketing, Loyalty

F INAN CI AL SERV I CES Square Card, Instant Transfer

CA P ITA L Core Flex Loans, Installments

Square Register, Terminal, Stand, and Contactless and

H A RDWA RE
Chip Reader, Third Party Peripherals

39
Broad portfolio of Cash App products with multiple monetization levers

Subscription and
Engagement Drivers Revenue Stream Transaction-based Bitcoin
services

Instant Deposit

S EN D IN G M ON EY Peer-to-Peer Cash for Business
Credit Card funding

Cash Card interchange

Boost (rewards)
Cash Card Studio
S PE N D IN G M ON EY Stored balance
ATM withdrawals
Direct Deposit
Interest Income

Bitcoin
IN V E S T IN G MON EY Bitcoin
Stock Brokerage

40
Definitions
Slide 7:
“Businesses” in the US is based on employer and non-employer firms with less than $100 million in annual gross receipts in select industry verticals based on 2012 U.S. Census data. “Businesses" also assumes a 3% share
for Square of the estimated number of informal economy businesses, based on estimated U.S. volume from informal businesses based on IMF’s estimated 8% share for informal economy from 1991 through 2015 applied to
US 2019 GDP, and applying an average assumed business size of $50,000 based on the average size of non-employer firms in the 2012 U.S. Census.
“Gross Receipts” is based on U.S. Census data regarding gross receipts for these “Businesses” as of 2012, adjusted for inflation through 2019 based on CPI from the U.S. Bureau of Labor Statistics.
“US TAM Opportunity” is calculated as sum of "Transaction Profit" and "Software", "Square Capital", and "Financial Services" revenue opportunities on subsequent slides.

Slide 8:
“Transaction Profit” opportunity is calculated by multiplying “Gross Receipts” opportunity by The Nilson Report’s estimate of card payments at 65% of 2018 U.S. consumer payment volume (as of December 2019), and
multiplying by Square’s average transaction margin as a percentage of GPV of approximately 1%.
“Software” revenue opportunity is calculated by multiplying select employer and non-employer firms producing less than $100 million in annual gross receipts in select relevant industry verticals based on 2012 U.S.
Census data by Square’s annualized software revenue per existing seller by product based on three months ending January 2020, or forecasted revenue per seller for products with recent price changes. Software
products include: Restaurants, Appointments, Retail, Marketing, Loyalty, Payroll, Team Management, Square Online Store.
“Square Capital” revenue opportunity is calculated by multiplying the sum of FDIC’s $232B of U.S. small business loans under $250,000 outstanding as of December 31, 2019 by the average of Goldman Sachs’ estimated
revenue rate on small business loans of 4% to 6% as of 2015.
“Financial Services” revenue opportunity is the sum of estimated Instant Transfers and Square Card opportunities. Instant Transfers opportunity is calculated by multiplying Square’s estimated average Instant Transfer
volume per seller in 2H 2019 and pricing of 1.5% on volume by Square’s estimated blended attach rate on the “Businesses” opportunity with less than $250K in gross receipts. Square Card opportunity is calculated based
on The Nilson Report’s estimates for 2019 US debit and prepaid spend, as of February 2020, applied to Forbes’ estimated share of business card spend to calculate overall business spend. Forbes’ estimate for businesses
with credit cards was applied to 65M total businesses from “Businesses” opportunity plus informal economy businesses, with informal economy businesses based on IMF’s estimated 8% share for informal economy from
1991 through 2015 applied to US 2019 GDP and divided by an assumed average business size of $50,000 based on the median non-employer seller size based on US Census data. These were used to calculate average
spend per business, which was then applied to the “Businesses” opportunity for less than $20M in gross receipts and a blended interchange rate assumption based on Mastercard’s public interchange rates.

Slide 9:
“Transaction Profit in Current International Markets” opportunity is calculated using the $2.9T of total estimated 2019 card payment volume across Australia, Canada, Japan, and United Kingdom based on
Euromonitor’s 2018 estimates and forecasted based on Euromonitors 2018 growth in these markets, multiplied by Square’s estimated 55% addressable share of card volume in the U.S. (based on the $3.9T of addressable
card volume relative to $7T in overall card spend) and applying Square’s average transaction profit margin of approximately 1%. Square’s share of card volume in the U.S. is based on “Gross Receipts” opportunity relative
to The Nilson Report’s estimate of total 2018 U.S. estimated card volume (as of December 2019).
Definitions
Slide 11:
“Sending” volume opportunity is the sum of estimated P2P and micro-merchants volume opportunities. “P2P volume opportunity” is calculated based on U.S. Census data on adult population as of 2018 multiplied by
estimated monthly P2P volumes per individual, which is the sum of Cash App internal average volume per monthly active, added to estimates for Zelle and Venmo monthly volume per customer based on respective public
disclosures as of Q4 2019. “Micro-merchants volume opportunity" is the sum of gross receipts for employer and non-employer firms with less than $250,000 in annual gross receipts in select industry verticals based on
2012 U.S. Census data, as well as estimated U.S. volume from informal businesses based on IMF’s estimated 8% share for informal economy from 1991 through 2015 applied to US 2019 GDP.
“Spending” volume opportunity is calculated using The Nilson Report’s estimates for 2018 US debit and prepaid spend (as of December 2019).
“Investing” volume opportunity is calculated based on $3.6T in balance sheet assets for registered broker-dealers serving retail customers according to the S.E.C. Chairman as of May 2018, adjusted for an assumed 16-
month average holding period of individual investors.

Slide 12:
“Sending” revenue opportunity is based on the approximate percentage of Cash App’s sending revenue as a percentage of peer-to-peer volumes, applied to the peer-to-peer portion of the “Sending” volume opportunity.
“Spending” revenue opportunity is calculated based on “Spending” volume opportunity multiplied by Visa’s public unregulated prepaid interchange rates as of April 2019 applied to Cash Card’s card-present vs. card-not-
present transaction mix by volume and The Nilson Report’s 2018 average debit transaction size (as of December 2019).
“Investing” gross profit opportunity is calculated based on bitcoin USD-denominated volume for 2019 from CoinMetrics multiplied by Square’s bitcoin gross profit as a percentage of bitcoin revenue for full-year 2019.

Slide 31:
Cash App payback period is calculated as the length of time for a cohort’s cumulative variable profit to exceed acquisition marketing spend during the period when the cohort was onboarded. Acquisition marketing
spend (or "acquisition spend") includes acquisition marketing, referral expenses and referral contra-revenue for a given period, and excludes costs for P2P processing and risk loss. Cohort variable profit is calculated as
gross profit across Cash App transaction-based profit, Cash Card gross profit including interchange and ATM withdrawals, Instant Deposit gross profit for Cash App, bitcoin gross profit and less certain variable sales and
marketing expenses, including P2P processing and risk loss. A Cash App cohort represents the new customers onboarded to Cash App during a given period. Cumulative cohort variable profit is cohort variable profit
over a given period.
Adjusted EBITDA—Reconciliation to GAAP

Twelve Months Ended

Dec 31, Dec 31, Dec 31, Dec 31, Dec 31, Dec 31,
2015 2016 2017 2018 2019 2020
(in thousands) (unaudited)

NET INCOME (LOSS) ($179,817) ($171,590) ($62,813) ($38,453) $375,446 $213,105

STARBUCKS TRANSACTION-BASED REVENUE (142,283) (78,903) — — —
STARBUCKS TRANSACTION-BASED COSTS 165,438 69,761 — — —
SHARE-BASED COMPENSATION EXPENSE 82,292 138,786 155,836 216,881 297,863 397,500
DEPRECIATION AND AMORTIZATION 27,626 37,745 37,279 60,961 75,598 84,212
LITIGATION SETTLEMENT EXPENSE — 48,000 — — —
INTEREST EXPENSE (INCOME), NET 1,163 (533) 10,053 17,982 21,516 56,943
OTHER (INCOME) EXPENSE, NET 450 (247) (1,595) (18,469) 273 (291,725)
PROVISION FOR INCOME TAXES 3,746 1,917 149 2,326 2,767 2,862
LOSS (GAIN) ON DISPOSAL OF PROPERTY AND EQUIPMENT 270 (49) 100 (224) 1,008 2,570
GAIN ON SALE OF ASSET GROUP — — — — (373,445)
ACQUISITION RELATED AND OTHER COSTS — — — 4,708 9,739 7,482
ACQUIRED DEFERRED REVENUE ADJUSTMENT — — — 12,853 7,457 1,497
ACQUIRED DEFERRED COSTS ADJUSTMENT — — — (2,042) (1,369) (375)
ADJUSTED EBITDA ($41,115) $44,887 $139,009 $256,523 $416,853 $474,071
Adjusted EBITDA—Reconciliation to GAAP
Adjusted EBITDA is a non-GAAP financial measure that represents our net income (loss), adjusted to eliminate the effect of Starbucks transaction-based revenue and Starbucks transaction-based costs, before interest
income and expense, provision or benefit for income taxes, depreciation, amortization, share-based compensation expense, other income and expense, the litigation settlement with Robert E. Morley in 2016, the gain or
loss on disposal of property and equipment, and impairment of intangible assets. We also exclude certain costs associated with acquisitions that are not normal recurring operating expenses, including amounts paid to
redeem acquirees’ unvested stock-based compensation awards, and legal, accounting, and due diligence costs, and we add back the impact of the acquired deferred revenue and deferred cost adjustment, which was
written down to fair value in purchase accounting. We have included Adjusted EBITDA in this document because it is a key measure used by our management to evaluate our operating performance, generate future
operating plans, and make strategic decisions, including those relating to operating expenses and the allocation of internal resources. Accordingly, we believe that Adjusted EBITDA provides useful information to
investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. In addition, it provides a useful measure for period-to-period comparisons of our
business, as it removes the effect of certain non-cash items and certain variable charges. We also make these adjustments for non-GAAP operating expenses, as applicable.
Adjusted EBITDA has limitations as a financial measure, and should be considered as supplemental in nature to, and is not meant as a substitute for, the related financial information prepared in accordance with GAAP.
The prior table presents a reconciliation of net income (loss) to Adjusted EBITDA for each of the periods indicated.
Discussion of financial results excluding Caviar

Three Months Ended

Mar 31, Jun 30, Sep 30, Dec 31, Mar 31, Jun 30, Sep 30, Dec 31,
2018 2018 2018 2018 2019 2019 2019 2019

TOTAL NET REVENUE $668,603 $814,938 $882,108 $932,528 $959,359 $1,174,238 $1,266,474 $1,313,429

LESS: CAVIAR CONTRIBUTION TO TOTAL NET REVENUE 27,469 36,928 39,584 44,628 46,530 43,389 40,948 15,045

TOTAL NET REVENUE EXCLUDING CAVIAR $641,134 $778,010 $842,524 $887,900 $912,829 $1,130,849 $1,225,526 $1,298,384

GROSS PROFIT, IN ACCORDANCE WITH GAAP $255,170 $315,816 $352,660 $380,054 $396,754 $465,845 $500,037 $527,049

LESS: CAVIAR CONTRIBUTION TO GROSS PROFIT 6,248 9,337 9,736 11,049 11,440 13,296 12,663 4,190

GROSS PROFIT EXCLUDING CAVIAR $248,922 $306,479 $342,924 $369,005 $385,314 $452,549 $487,374 $522,859

We have included total net revenue excluding Caviar and gross profit excluding Caviar because they are key measure used by our management to evaluate our operating performance, generate future operating plans, and
make strategic decisions, including those relating to operating expenses and the allocation of internal resources. Accordingly, we believe that total net revenue excluding Caviar and gross profit excluding Caviar provide
useful information to investors and others in understanding and evaluating our operating results in the same manner as our management and board of directors. In addition, it provides a useful measure for period-to-
period comparisons of our business, as it removes the impact of a business that was disposed of during the fourth quarter of 2019.