Block, Inc. Discusses Strategic Focus and Product Innovations at JPMorgan Global Technology Conference 2025

Key Takeaways

TL;DR: Block (SQ) highlighted Cash App's April recovery (+13% YoY GP growth), Square's 100+ product launches (incl. new hardware), Borrow expansion via internal banking, and Proto's Bitcoin mining rig launch (H2 2025). AI-driven Codename Goose aims to automate ops. Management reiterated Rule of 40 focus and confidence in accelerating H2 growth despite a conservative near-term guide.

1. Cash App Trends & Strategy

• April Performance:
  • GP: +13% YoY (excl. onetime), up from +7% in March.
  • Inflows/active: +9% YoY (vs. +5% in March).
  • Management emphasized consumer resilience and improving engagement.
• 2024 Priorities:
  • Density & Network Growth: Shift to balance actives growth (vs. prior overemphasis on engagement). Focus on teens and integrating Cash App into local ecosystems (e.g., testing merchant reciprocity in Portland).
  • Borrow Expansion: 2H catalyst via Square Financial Services (doubles eligible actives, improves unit economics). Product now linked to paycheck deposit users for bridging cash flow gaps.

2. Square Turnaround & Product Velocity

• Product Launches:
  • New Hardware: "Owen" handheld reader (thinnest/priced entry in market).
  • 100+ Features unveiled at biannual event (inc. Contractual terms to counter competitors’ lock-ins).
• GTM Shift: Targeting 50-50 self-serve/sales-led mix (from ~80% self-serve). Field sales driving larger client wins (e.g., enterprise retailers).
• GPV Growth: Expected to improve through 2024.

3. Proto (Bitcoin Mining)

• 2H 2025 Launch: Custom 3-nanometer mining chips/rigs (via TSMC).
  • Targets both large-scale miners and niche buyers.
  • GP Contribution: First-time GP impact expected in 2024.
• Competitive Edge: Reliability, customization, and speed vs. single rival.

4. AI & Automation (Codename Goose)

• Autonomy Focus: AI agent tool for finance/ops automation (sellers and Block internally).
  • Capable of building apps/code-free interfaces (e.g., bridging Cash App/Square ecosystems).
• Interface Innovation: Aim to "prompt users" (vs. reactive Q&A) using proprietary finance/ops data.

5. Financials & Guidance

• 2024 Outlook:
  • Conservative Q2 Guide: Reflects macro uncertainty, but April/May trends robust.
  • Cash App GP Growth: Target acceleration to high-teens by YE 2024 (vs. 10% in Q1).