#1Q2 2022 Investor Presentation investors.block.xyz#2BLOCK Forward-looking statements 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. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, statements regarding our future performance and our market opportunity. These forward-looking statements are subject to a number of known and unknown risks, uncertainties, assumptions, and other factors that may cause 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. Among the factors that could cause actual results to differ materially from those indicated in the forward-looking statements are risks and uncertainties described from time to time in the Company's filings with the Securities and Exchange Commission. 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, we assume no obligation to update any of these forward-looking statements. Industry Information Information, including forecasts and estimates regarding market and industry statistics contained in this presentation, is based on information available to us that we believe is reliable; however, there can be no assurance that this information will prove accurate in whole or in part. It is generally based on publications that are not produced for purposes of economic analysis. For definitions of any industry terms not otherwise defined on a slide, please refer to the Appendix at the end of this presentation. Non-GAAP Financial Measures To supplement our financial information presented in accordance with generally accepted accounting principles in the United States ("GAAP"), we consider and present certain non-GAAP financial measures. These non-GAAP measures are presented in addition to, and not a substitute for or superior to, measures of financial performance presented 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 these non-GAAP measures and the related GAAP measures are included in the appendix to this presentation. 2#3BLOCK 3 We've grown our ecosystems and expanded the audiences we serve Square Cash App Square Reader Payments Point of Sale: Square Loyalty Square Directory Canada Square Stand Japan Square Loans Square Invoices Appointments Analytics App Marketplace. Gift Cards. Marketing Square Contactless + Chip. Payroll Instant Transfer Team Management Square Reader Payments Peer-to-peer payments Cash for Business Australia eCommerce API POS API Virtual Terminal Square for Retail. Square Register Point of Sale Square Loyalty UK Square Directory Canada Square Stand Japan Square Loans Square Invoices Appointments Analytics App Marketplace Gift Cards Marketing Square Contactless + Chipt Payroll Instant Transfer Team Management Square Reader Payments Stored balances. Instant Deposit Cash App Card ATM withdrawals Peer-to-peer payments Cash for Business Square for Restaurants Reader SDK. Square Installments Square Terminal In-App Payments SDK Square Card Square Online Store Order Management Square Photo Studio Orders API Square Assistant Square Financial Services Check deposits On-demand Delivery On-demand Pay and Instant Payments Self-serve ordering Terminal API Kitchen Display System Australia eCommerce API POS API Virtual Terminal Square for Retail UK Square Register Point of Sale Square Loyalty Square Directory Canada Square Stand Japan Square Loans Square Invoices Appointments Analytics App Marketplace Gift Cards Marketing Square Contactless + Chip Payroll Instant Transfer Team Management Square Reader Payments Bitcoin trading Direct Deposit UK Cash Boost Stock trading Cross-border payments Cash Card Studio Borrow Stored balances Instant Deposit Cash App Card ATM withdrawals Peer-to-peer payments Cash for Business Square Messages Ireland Subscriptions API France Spain BNPL as payment method DNFL Square for Restaurants Reader SDK Square Installments. Square Terminal In-App Payments SDK Square Card Square Online Store: Order Management Square Photo Studio Orders API Square Assistant Square Financial Services Check deposits On-Demand Delivery On-Demand Pay and Instant Payments Self-serve ordering: Terminal API Kitchen Display System Australia eCommerce API POS API Virtual Terminal Square for Retail UK Square Register Point of Sale Square Loyalty Square Directory Canada Square Stand Japan Square Loans Square Invoices Appointments Analytics App Marketplace Gift Cards Marketing Square Contactless + Chip Payroll Instant Transfer Team Management Square Reader Payments Bitcoin peer-to-peer Paper Money Cash App Pay Families Peer-to-peer stock and bitcoin gifting. Taxes Send Lightning payments Receive Lightning payments Paid in Bitcoin Round up feature Bitcoin trading Direct Deposit UK Cash Boost Stock trading Cross-border payments Cash Card Studio Borrow Stored balances Instant Deposit Cash App Card ATM withdrawals Peer-to-peer payments Cash for Business 2010 2015 2017 Products shown are illustrative and may not correspond to the exact period launched. 2020 2022#4BLOCK Strong growth at scale Gross Profit >50% CAGR over the past five years $4,420M $32M $2,071M $2,734M $1,848M $1,226M $1,267M $458M $824M $195M Corporate (& Other Emerging Initiatives) $2,317M $47M $1,390M $1,508M Cash App $1,072M $777M Square 2017 2018 2019 2020 2021 Caviar gross profit has been excluded for all periods. Compound annual growth rate (CAGR) represents the compound annual gross profit growth rate from 2017 to 2021. Please see Appendix for non-GAAP and other reconciliations. 4#5BLOCK MARKET OPPORTUNITY -> Market Opportunity#6BLOCK MARKET OPPORTUNITY We have expanded our addressable market over time and are less than 3% 2022 $120B penetrated today 2022 $70B 2020 $100B 2020 $60B 2017 $60B 2017 2015 Cash App Previous Addressable Market estimates were provided in prior Block Investor Day materials. 2015 2010 Square 2022 Addressable Market was sized on a gross profit basis, while 2020 and 2017 were sized based on the "revenue opportunity." Penetration is calculated based on 2021 company gross profit as a percentage of the overall estimated market opportunity for Square and Cash App, which can be referenced on slides 7 to 14. 6#7BLOCK MARKET OPPORTUNITY SQUARE Square represents a ~$120B gross profit opportunity - $81 B U.S. Commerce Integrated Payments Software $16 B + В U.S. Banking Square Loans Financial Services $25 B International Integrated Payments Software Financial Services $120 B Opportunity Sources: Square internal company data, 2017 U.S. Census, The Nilson Report. For further information on how we calculate "U.S. Commerce," "U.S. Banking," and "International" opportunity, please see Appendix. 7#8BLOCK MARKET OPPORTUNITY - SQUARE With SMB and mid-market sellers representing an attractive target opportunity Enterprise Seller Size (Gross Receipts) U.S. Sellers U.S. Gross Receipts $100M+ 25K $8.5T $20M $100M 51K $1.7T Mid-Market $1M - $20M 1.0M $3.7T SMB Micro $250K - $1M <$250K 2.9M 17.2M $1.3T $518B Sources: 2017 U.S. Census, U.S. Bureau of Labor Statistics. "Seller Size" is based on U.S. Census data classified by annual gross receipts for a given business. Highlighted seller sizes represents Square's target opportunity with larger sellers. "U.S. Sellers" opportunity is based on employer and non-employer firms in the U.S. in select industry verticals based on 2017 data. Seller sizes from the U.S. Census gross receipts are mapped to Square seller size classifications by assuming a given business' sales are 50% cash and 50% card payments. "U.S. Gross Receipts" opportunity is based on U.S. Census data as of 2017, adjusted for inflation through 2021 based on CPI from the U.S. Bureau of Labor Statistics. 8#9BLOCK MARKET OPPORTUNITY SQUARE Less than 1% penetrated in the mid-market segment today 2021 gross receipts as % of addressable opportunity 13% - 4% 0.5% Micro SMB Sources: Square internal company data, 2017 U.S. Census, U.S. Bureau of Labor Statistics. Mid-Market Seller sizes from the U.S. Census gross receipts are mapped to Square seller size classifications by assuming a given business' sales are 50% cash and 50% card payments. "U.S. Gross Receipts" opportunity is based on U.S. Census data as of 2017, adjusted for inflation through 2021 based on CPI from the U.S. Bureau of Labor Statistics. 9#10BLOCK MARKET OPPORTUNITY -> SQUARE Multiple strategies to expand addressable market Circles are illustrative of opportunities to expand addressable market, but are not proportional or to scale. Global expansion Financial services Growing upmarket Enhancing omnichannel capabilities $120 B 10#11BLOCK MARKET OPPORTUNITY -> CASH APP Cash App represents a ~$70B gross profit opportunity in the U.S. $28B Community (P2P) Business accounts Instant Deposit $40 B + Financial Services Cash App Card + $3 B Bitcoin (Consumer Trading) Buying and selling bitcoin $ 70 B Opportunity Sources: Cash App internal company data, Zelle and Venmo public released information, U.S. Census Bureau, Current Population Survey, Annual Social and Economic Supplement, 2019, The Nilson Report #1210, CoinGecko, Bitcoin Trade Volume, Bitnodes. For further information on how we calculate "Community (P2P)," "Financial Services," and "Bitcoin (Consumer Trading)" opportunity, please see Appendix. 11#12BLOCK MARKET OPPORTUNITY CASH APP Opportunity to expand on strong growth with digital natives - ~260M Potential Customers U.S. Population Age Mean Income Cash App Cash App % of Monthly Actives % of Inflows Generation Z ~56M 13-25 $39K Millennials 34% 27% ~72M 26-41 $85K 38% 44% Generation X ~67M 42-57 $113K 20% Baby Boomers ~66M 58-76 $79K 8% 22% 7% Sources: 2017 U.S. Census, U.S. Bureau of Labor Statistics. For definition of Cash App "active" please see Appendix. Cash App inflows for the 12 months ending 3/31/22, and Cash App monthly actives as of March 2022. Does not include actives or inflows from actives who have not gone through the identity verification process with Cash App. Income data from U.S. Bureau of Labor Statistics 2020 Consumer Expenditure Survey. 12#13BLOCK MARKET OPPORTUNITY CASH APP Reaching less than 20% of the U.S. population today Cash App monthly actives with demographic data (% of U.S. population) 20% - 17% 10% 4% 13 Gen Z Millennials Gen X Baby Boomers Represents Cash App monthly actives as of 3/31/22 as a percentage of the U.S. population. We defined the U.S. population as of U.S. Census data as of 2019, adjusted for assumed population growth. Does not include actives who have not gone through the identity verification process with Cash App. Circle sizes are representative of relative population size, and not drawn to scale.#14BLOCK MARKET OPPORTUNITY -> CASH APP Multiple strategies to expand our addressable market Circles are illustrative of opportunities to expand addressable market, but are not proportional or to scale. Global Bitcoin Credit Commerce Engagement $70 B 14#15BLOCK TIDAL BITCOIN MARKET OPPORTUNITY - Investing in emerging ecosystems with meaningful long-term potential Creators Consumers Bitcoin Developers Bitcoin TIDAL Wallet Bitcoin Mining TBD Spiral 15#16BLOCK SQUARE ECOSYSTEM Square Ecosystem#17BLOCK SQUARE ECOSYSTEM → 17 Customers Team Crew Timecards Payroll Mgmt Staff Next Insurance When Work Schedulicity TipJar Guideline Simply Insured On-Demand Delivery Seller-Powered Delivery Mailchimp ** 1000 Marketing Loyalty 7Shifts Homebase SQUARE The Square solution A cohesive ecosystem of integrated software, hardware, and financial services Afterpay Studio A M FUSED Gift Cards Messages TikTok Uber Eats 1000 SUPER HOT SALSA. SUPER SUPER STIPER FUBGS FUEGO FUEGO Banking MS WITHINTO BALSAS $10,752.98 Doordash Google for Business Loans Savings Bourtes Groupon Checking 00 00 Online Checkout eCommerce API's Invoices Order Manager Square for Restaurants In-Person API's SkulQ Commerce Square Capability First-Party Offering ○ Third-Party Partner Virtual Terminal Square Online Kitchen Display System Square for Retail Point of Sale Payments Terminal Appointments Marketman Spocket#18BLOCK SQUARE ECOSYSTEM → SQUARE Multi year transformation Gross profit by product area ~80% of gross profit in 2021 generated from software & integrated payments, banking, and international $2.4B 2015 2016 2017 2018 2019 2020 2021 International U.S. Banking 18 U.S. Software & Integrated Payments U.S. Sidecar Payments Excludes hardware gross profit losses. We view hardware as an acquisition tool and not a profit center for our business. 2015 and 2016 excludes contribution from Starbucks. Sidecar payments are transactions where sellers enter an amount on the keypad and hit charge.#19BLOCK SQUARE ECOSYSTEM 19 → SQUARE Multi year transformation Gross profit mix by ecosystem adoption (# of monetized products that a seller uses) 100% 40% 75% 50% of gross profit from sellers that use 4 or more monetized products 25% 4+ Products 3 Products 2 Products 1 Product 0% 2015 2016 2017 2018 2019 2020 2021 Includes only monetized products and excludes hardware devices. Bundle products treated as one product even if they include other monetized products (e.g., paid tier of Square for Retail includes Team Management). 2015 and 2016 excludes contribution from Starbucks.#20BLOCK SQUARE ECOSYSTEM SQUARE Square sellers represent a diverse range of industries % of Square Gross Payment Volume (GPV) by industry in 2021 9% Home & Repair 10% Healthcare & Fitness 10% Other 10% Beauty & Personal Care 13% Professional Services 29% Food & Drink 20% Retail 20#21BLOCK SQUARE ECOSYSTEM SQUARE Efficient paybacks and positive retention have driven strong customer lifetime value and return on investment >3x returns over 4 years Return on investment 20x 15x 10x 5x Ox 5 10 15 20 25 30 35 55 Quarters after joining For definition of Square "return on investment (ROI)" please see Appendix. Each line represents quarterly cohorts from Q2 2012 to Q4 2021, with data through Q1 2022. 21 21 40 40#22BLOCK SQUARE ECOSYSTEM SQUARE Positive dollar-based retention has led to recurring revenue streams Gross Profit by Cohort Positive gross profit retention for each annual cohort from 2012 to 2021 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2021 Cohort 2020 Cohort 2019 Cohort 2018 Cohort 2017 Cohort 2016 Cohort 2015 Cohort 2014 Cohort 2013 Cohort Pre-2012 Cohort For definition of Square "gross profit retention" please see Appendix. Each of our quarterly and annual cohorts had exhibited positive overall retention on aggregate from their date of onboarding through December 31, 2021. 22#23BLOCK SQUARE ECOSYSTEM SQUARE Product adoption can enhance cohort economics Gross profit could increase by 3.5x as a seller adopts Annual gross profit based on an actual Square seller $10,000 more products and expands $7,000 into new channels $5,000 $2,000 $500 $200 $900 $1,200 $1,500 $8,800 $2,500 Seller example: Gross profit opportunity for an $2,500 individual seller. Retail seller with $500,000 in annual GPV $0 across two locations and in- Software & Payments Software & Payments Square for Retail Square Online person and online channels. (1st Location) (2nd Location) Customer Engagement (Marketing, Loyalty) Invoices Loans Total Gross Profit Seller example is illustrative and based on an actual Square seller's use for all products except Loans, which was based on Square Loans monetization for similar sellers. Numbers were rounded for simplicity of the example. 23#24BLOCK SQUARE ECOSYSTEM SQUARE Growing omnichannel Gross profit from omnichannel sellers 6* gross profit growth from omnichannel sellers since 2015 $1.1B $0.2B $0.9B 24 24 Online-Only Sellers Omnichannel Sellers 2015 2016 2017 2018 2019 2020 2021 12% 14% 23% 30% 36% 47% 49% % of total Square Gross Profit Note: Omnichannel seller defined as a seller who has taken both an in-person payment and an online channel payment in a given quarter. Annual values are presented as the sum of four quarters within each year. All Gross Profit data excludes hardware. 2015 and 2016 excludes Starbucks gross profit.#25BLOCK SQUARE SQUARE ECOSYSTEM Global expansion Gross profit from international markets 60% international annual growth rate since 2015 $220M Rest of World¹ UK + Europe Canada Australia 25 2015 2016 2017 2018 2019 2020 2021 3% 3% 4% 4% 6% 8% 9% International % of total Square Gross Profit Note: Square gross profit does not include hardware gross profit losses. We view hardware as an acquisition tool and not a profit center for our business. 1 Rest of World includes gross profit from legacy Weebly solutions added in the 2018 acquisition.#26BLOCK SQUARE ECOSYSTEM SQUARE Upmarket progress Gross profit from larger sellers 19* gross profit growth from >$500K sellers since 2015 $1.3B 2015 2016 2017 2018 2019 2020 2021 Note: Seller size defined as annualized GPV based on the last quarter of the period. Gross profit excludes hardware and Starbucks data from 2015-2016. >$500K Annualized GPV $125K $500K Annualized GPV 26#27BLOCK CASH APP ECOSYSTEM Cash App Ecosystem#28BLOCK CASH APP CASH APP ECOSYSTEM Our services work together cohesively to build the Cash App ecosystem Paper Checks Inflows Direct Deposit Paper Money Borrow Cash-In Taxes P2P Deposit BTC Balance Outflows Instant Deposit ATM BTC P2P Cash App Card Stocks Revenue streams 28#29BLOCK CASH APP ECOSYSTEM CASH APP We instrument and operate Cash App's business through the inflows framework Actives X Inflows per Active X Monetization rate || Gross profit 29 29#30BLOCK CASH APP ECOSYSTEM CASH APP We have driven growth across a diversity of services and revenue streams Gross profit by category 2017 2018 2019 2020 2021 Bitcoin (Consumer Trading) Financial Services (Cash App Card) Community (P2P) Community (P2P) equals gross profit from Instant Deposit, business accounts, and P2P transactions funded with a credit card. Financial Services (Cash App Card) equals gross profit from transaction fees on Cash App Card, interest on customer funds, cash deposits, Cash App Card Studio, and ATM fees. Bitcoin (Consumer Trading) equals bitcoin and brokerage gross profit. 30#31BLOCK CASH APP CASH APP ECOSYSTEM We have driven greater weekly and daily engagement Monthly Actives Weekly Actives Daily Actives 2015 2016 2017 2018 2019 2020 2021 ~80M annual actives on average in March 2022 ~46M monthly actives on average in March 2022 ~27M weekly actives in March 2022 (~2 in 3 monthly actives) ~11M daily actives in March 2022 (~1 in 4 monthly actives) For definition of Cash App "active" please see Appendix. Chart shows annual average monthly, weekly, and daily actives from 2015 to 2021, calculated as the average of each month during the period. 31#32BLOCK CASH APP ECOSYSTEM CASH APP With a number of levers to grow and monetize inflows From 2017 to 2019, gross profit was driven primarily by growth in actives From 2019 to 2021, inflows per active became the primary driver of gross profit growth $47M 2017 $457M 2019 $2,071M 2021 Monetization Rate on Inflows Inflows per Active Actives 32 Cash App Gross Profit For definition of Cash App "active" please see Appendix. Monetization rate on inflows represents gross profit as a percentage of inflows over the given period. Inflows per active defined as overall inflows into Cash App each year, divided by the number of annual actives. "Actives" represents growth in annual actives for each year in the period.#33BLOCK CASH APP ECOSYSTEM CASH APP Product adoption has driven greater inflows and monetization Inflows multiplier 8x by product actives 6x 4X 4.4x 2x 3.7x 2.2x 2.4x 1.9x 1.0x Ox 6.5x Peer-to-peer only Stock Trading Cash App Card Taxes Bitcoin Borrow For definition of Cash App "active" please see Appendix. Represents monthly actives in March 2022 and total inflows for Q1 2022, except for Cash App Taxes actives where we used quarterly actives in Q1 2022 because it is an annual use case. Inflows per active for the specific product are calculated as the average quarterly total inflows for that product active. Actives can span multiple product categories. Direct Deposit 33#34BLOCK CASH APP CASH APP ECOSYSTEM Consumers have found broad-based utility with Cash App Card through everyday purchases Cash App Card spend at top 250 merchants in Q4 2021 9% Travel & Entertainment Note: Gas & Auto includes convenience store spending at relevant gas stations. 9% Telecom & Utilities 13% Gas & Auto 14% Other Retail 10% Grocery 20% Restaurants 21% Big Box & Discount Retail 2% Other 34#35BLOCK CASH APP ECOSYSTEM CASH APP $10 acquisition cost is a fraction of industry benchmarks Cash App's acquisition cost vs. industry $10 Cash App Source: Internal Cash App data, Unifimoney article: "A No CAC Bank?", and competitor transcripts. $30 - $50 $300 - $600 Neobanks Retail Banks 35#36BLOCK CASH APP ECOSYSTEM CASH APP Cash App sales and marketing includes acquisition spend and various non-discretionary expenses Cash App sales and marketing expense (2021) 28% Acquisition spend we use to calculate our $10 cost of acquisition 63% P2P expenses we deduct from gross profit in our cohort economics Other Acquisition Spend P2P Expenses For definitions of Cash App "acquisition spend" please see Appendix. Represents each category as a percentage of Cash App sales and marketing expenses. P2P (peer-to-peer) expenses include P2P processing costs and P2P risk loss. Other expenses include Cash App Card issuance costs, investing costs, and certain other costs which are not material. 36#37BLOCK CASH APP CASH APP ECOSYSTEM Efficient paybacks and positive retention have driven strong customer lifetime value and return on investment >6x returns over 3 years Return on investment 12x 10x 8x 6x 4X 2x 2021 2020 2019 2018 Ox 2017 6 12 18 24 30 Months after joining For definitions of Cash App "return on investment (ROI)" please see Appendix. Each line represents the average monthly cohort for the corresponding year. ROI trends only includes periods where we have a sample of at least 6 different months. 37#38BLOCK CASH APP ECOSYSTEM CASH APP Strong gross profit retention has led to recurring revenue streams Gross Profit by Cohort >125% gross profit retention for each annual cohort over the past four years 2017 2018 2019 2020 2021 2021 2020 2019 2018 2017 Pre-2017 For definition of Cash App "gross profit retention" please see Appendix. Each of our annual Cash App cohorts since 2015 and the pre-2015 cohort have exhibited positive overall gross profit retention on aggregate from the date of their first transaction through December 31, 2021. 38#39BLOCK CASH APP CASH APP ECOSYSTEM Product adoption can enhance cohort economics Annual gross profit for an ideal Cash App active $250 Gross profit could increase by >10x as an active adopts $200 more products and expands share of wallet $150 $30 $100 $225 $100 $35 Illustrative Cash App active example: Gross profit opportunity for a $50 transacting active that begins $45 $15 with a small P2P network, grows to become a banking and investing $0 active, before depositing their paycheck into Cash App P2P Cash App Card Bitcoin P2P & Cash for Business Cash App Card Total Gross Profit Gross profit is presented on a per active basis for a given year. Cash App active example is illustrative, although representative of adoption and engagement actives have demonstrated on Cash App. 39#40BLOCK CASH APP ECOSYSTEM CASH APP Investing in seven key development pillars → Community -> Financial Services → Crypto → Operating System Sreesehills 12:00 SC -> Trust -> Commerce -> Global $0 Request 2 8 9 0 IITO $ Pay B 40 40#41BLOCK AFTERPAY Afterpay: Connecting the Square and Cash App Ecosystems#42BLOCK AFTERPAY AFTERPAY Afterpay is a connection between Block's ecosystem of ecosystems Millions of Square active sellers >140k Active Sellers Incremental sales and growth AfterPay Building connections through commerce and payments Stronger engagement and frequency 80M Cash App annual actives >20m Active Consumers All mentions of "Afterpay active consumers", "Afterpay active sellers", "Cash App annual actives" and "Square active sellers" are as of March 31, 2022 unless otherwise specified. For definitions of "Square active Sellers", "Afterpay active sellers", "Afterpay active consumers" and "Cash App actives" please see Appendix. 42#43BLOCK AFTERPAY AFTERPAY Afterpay complements Square with strong merchant retention Gross Merchandise Volume (GMV) by Afterpay Seller Cohort Positive Afterpay seller GMV retention for each annual cohort from 2016 to 2021 2018 2019 2020 2021 2021 2020 2019 2018 Pre-2018 Cohort Afterpay Gross Merchandise Value or GMV is a measure of the total order value processed on the Afterpay platform. Afterpay seller GMV retention is calculated as the year-over-year GMV growth of an annual Afterpay cohort of sellers. An Afterpay seller's annual cohort is determined based on the date they first processed an Afterpay transaction. 43#44BLOCK AFTERPAY AFTERPAY Afterpay complements Cash App with strong consumer retention Consumer GMV by Cohort Positive Afterpay consumer GMV retention for each annual cohort from 2016 to 2021 2018 2019 2020 2021 2021 2020 2019 2018 Pre-2018 Cohort Afterpay Gross Merchandise Value or GMV is a measure of the total order value processed on the Afterpay platform. Afterpay consumer GMV retention is calculated as the year-over-year GMV growth of an annual Afterpay cohort of consumers. A consumer's annual cohort is determined based on the date they first processed an Afterpay transaction. 44#45BLOCK AFTERPAY AFTERPAY We have improved risk loss in each region over time Risk loss by region since launch Quarters since launch, risk loss as a percentage of GMV UK Post COVID pressure UK Risk intervention UK 1.47% US Post COVID pressure US Risk Intervention ANZ COVID pressure U.S. 1.06%¹ 1 Quarters since launch 1. Data through December 31, 2021. For definitions of "ANZ", "SKU" and "Risk Loss" please see Appendix. >90% of Afterpay customers use debit ANZ Risk Intervention 95% of all installments were paid on time 28 ANZ 0.80% 98% of all purchases incurred no late fees 45#46BLOCK AFTERPAY AFTERPAY Our integration priorities Live in Market → Afterpay and Square Online integration (AU & U.S.) Afterpay and Square In Person integration (AU & U.S.) → Lead generation into Cash App Medium-Term Underway → Launch Cash App Pay to Afterpay active sellers (existing and new) → Expose sellers to Cash App annual actives and Afterpay active consumers via commerce integration and Shop Directory → Broaden product set for Sellers through global API (Cash App Pay and Afterpay) Longer-Term → Expand Square's enterprise presence, cross-sell commerce ecosystem with Afterpay active sellers → Launch Cash App internationally, including Australia → Scale an advertising platform for Cash App For definitions of "Lead generation", "Afterpay active consumers", "Cash App actives", "Enterprise sellers" and "Shop Directory" please see Appendix. 46#47BLOCK INVESTMENTS & PROFITABILITY Investments & Profitability#48BLOCK Powerful business model INVESTMENTS & PROFITABILITY Driving growth at scale Compelling unit Attractive economics structural profitability 48#49BLOCK INVESTMENTS & PROFITABILITY Our largest ecosystems have achieved strong profitability 2021 Adjusted Fully- Burdened Profit Margin (as % of Gross Profit) 34% Square 12% Cash App For these purposes, corporate overhead is allocated by cost center to each ecosystem based on a driver selected to closely approximate each ecosystem's usage of centralized services which include ratios like headcount, gross profit, consumption rates, etc. Excludes share-based compensation expenses, and expenses related to TIDAL and TBD, and employer taxes from options exercised related to Caviar, which was sold in 2019. Please see Appendix for a reconciliation and information on expense categories. 49#50BLOCK INVESTMENTS & PROFITABILITY And benefit from attractive structural profitability Fixed Costs Product investments: Variable Costs Acquisition and growth: Marketing expenses -> Engineering, data science, -> and design teams -> Sales teams Software and data Corporate overhead: -> -> Corporate teams Professional and legal fees Rent and facilities Please see Appendix for a reconciliation and information on expense categories. Ongoing variable: -> Cash App P2P and card issuance costs -> Risk loss -> Customer support 50#51BLOCK INVESTMENTS & PROFITABILITY Square has benefited from high structural margins, which have remained relatively stable over time Structural Margin 1 - (variable costs as a % of gross profit) 80% Structural margins in the 60% to 70% range from 2018 through 2021 60% 40% 20% 0% 2018 2019 2020 2021 69% 2021 For these purposes, corporate overhead is allocated by cost center to each ecosystem based on a driver selected to closely approximate each ecosystem's usage of centralized services which include ratios like headcount, gross profit, consumption rates. Our corporate overhead used the same methodology and structure as our ecosystems did to assign variable and fixed costs. From this point, we used the ratio of variable vs fixed to allocate our total corporate overhead variable costs to each of the ecosystems based on their total allocation usage. Excludes share-based compensation expenses, and expenses related to TIDAL and TBD. Please see Appendix for a reconciliation and information on expense categories. 51#52BLOCK INVESTMENTS & PROFITABILITY Cash App has also achieved strong structural margins, which have improved significantly in recent years Structural Margin 1 - (variable costs as a % of gross profit) 40% 30% 20% 10% Structural margin expansion over time from 0% 4% in 2018 to 37% in 2021 2018 2019 2020 2021 37% 2021 For these purposes, corporate overhead is allocated by cost center to each ecosystem based on a driver selected to closely approximate each ecosystem's usage of centralized services which include ratios like headcount, gross profit, consumption rates. Our corporate overhead used the same methodology and structure as our ecosystems did to assign variable and fixed costs. From this point, we used the ratio of variable vs fixed to allocate our total corporate overhead variable costs to each of the ecosystems based on their total allocation usage. Excludes share-based compensation expenses, and expenses related to TIDAL and TBD. Please see Appendix for a reconciliation and information on expense categories. 52#53BLOCK INVESTMENTS & PROFITABILITY While for our overall company, we have driven leverage from our fixed expenses Block Fixed Costs (as a % of gross profit) 80% 60% 40% 20% 0% 2015 2017 2019 2021 Please see Appendix for a reconciliation and information on expense categories. Fixed expenses include fixed personnel expenses (G&A and product development personnel), professional fees and subscriptions (including add back for acquisitions), and facilities expenses. 53#54BLOCK INVESTMENTS & PROFITABILITY Maintaining discipline around our investments into our emerging TIDAL and bitcoin ecosystems Evaluating investments based on: -> Team and strategy -> Product roadmap -> Business model and growth potential くろ % of 2022 non-GAAP operating expenses Represents aggregate expected expenses for emerging initiatives across TIDAL, TBD, bitcoin hardware projects (bitcoin mining, bitcoin wallet). We have not provided the forward-looking GAAP equivalents for certain forward-looking non-GAAP operating expenses or a GAAP reconciliation as a result of the uncertainty regarding, and the potential variability of, reconciling items such as share-based compensation expense. Accordingly, a reconciliation of these non-GAAP guidance metrics to their corresponding GAAP equivalents is not available without unreasonable effort. However, it is important to note that material changes to reconciling items could have a significant effect on future GAAP results. 54#55BLOCK INVESTMENTS & PROFITABILITY Strong and healthy balance sheet provides optionality around funding A $~7B В in available liquidity on our balance sheet Free Cash Flow $101M ($72M) 2015 2017 $369M $867M 2019 2021 For definition of "free cash flow" please see Appendix. "Free cash flow" is a non-GAAP financial metric. Please see Appendix for non-GAAP and other reconciliations. 55#56BLOCK INVESTMENTS & PROFITABILITY Strong and healthy balance sheet provides optionality around funding Product Performance attributes Duration Loss rates Square Loans <12 month term <4% loss rate Afterpay BNPL Receivables Newer Experimental Products (Cash App Borrow) 4-6 week duration, 15x turnover ~1% loss rate Near-term funding Longer-term intent Sell majority of loans to third-party investors Sell majority of loans to third-party investors Fund with mix of cash and warehouse facilities Explore optionality around other structures Fund with available cash Explore optionality around other structures For definitions of "loss rate", "duration", "turnover" please see Appendix. Data as of March 31, 2022. 56#57BLOCK Appendix#58BLOCK Our ecosystems become more powerful as we build connections between them Messages Restaurant PCS Employee Financial Services Virtual Terminal POS API App Marketplace Gift Cards eCommerce API Appointments On Demand Delivery Time Cards Online Checkout eGift Cards. Hardware Financing/ Installmente Instant Transfers Reader SDK Stand Magstripe Reader In-App Payment SDK Retail POS Loane Kitchen Display System Terminal Photo Studio Invoices API Text Message Marketing Seller Powered Delivery Loyalty. Email Marketing Payroll Subscriptions API Order Manager Square BNPL Invoices neebly Tean Management Crew Coupons. Point of Sale Register Online Rick Manager Contactless & Chip Reader Subscriptions. Terminal API Savings. Checking. Dashboard Music Streaming Afterpay TIDAL Instant Deposit ATM Withdrawals Boosts Direct Deposit Cash In Bitcoin Withdrawals Bitcoin Deposits: Bitcoin Peer-to-Peer Bitcoin Payment. Bitcoin Custody Stock Gifting Custom Stock orders Cash App BNPL Cash App Pay Cash App Card Artist Tools Cash for Business Bitcoin Trading Families Auto Invest Paper Money Paper Checks Balance Cash App Studio Stocks Peer-to-Peer Borrow Taxes Mining TBD Lightning Spiral Bitcoin Hardware Wallet 58#59BLOCK Appendix Slide 7 "U.S. Commerce" gross profit opportunity is a combination of U.S. Payments, U.S. ACH, and SaaS opportunities. U.S. Payments opportunity is calculated by aggregating the gross receipts of U.S. businesses and adjusting for Square's addressable industries (2017 U.S. Census), then applying an inflation factor, card payment mix (per December 2021 Nilson Report), and a 1% transaction margin. The U.S. ACH opportunity uses the 2021 adjusted gross receipts, applies ACH penetration mix (Nilson Report), a 0.92% transaction margin, and the number of addressable businesses for Square's Invoices product as a percentage of Square's total addressable businesses. SaaS opportunity is calculated using the 2021 gross profit per active for each of Square's SaaS products, then multiplying by the number of addressable businesses respective to each product based on seller size and vertical. "U.S. Banking" gross profit opportunity is defined by the aggregate sizing of Square Loans, Square Card, and Instant Transfer. Square Card and Instant Transfer opportunities are calculated based on 2021 seller gross profit per active multiplied by gross margin, an estimated attach rate ceiling, and the number of addressable businesses respective to each product based on seller size and vertical. Square Loans is calculated using outstanding FDIC U.S. small business loans under $250,000 outstanding as of December 31, 2021, multiplied by the average of Goldman Sachs' estimated revenue rate on small business loans of 4% to 6%. "International" gross profit opportunity is defined by the International Payments opportunity and then extrapolating out International SaaS and International Financial Services based on a similar mix to the U.S. The International Payments opportunity is calculated by aggregating 2019 HFCE data (Household Final Consumption Expenditure) for each of Square's current international markets adjusted for applicable industries, then converting to USD and multiplying the 2-year card penetration CAGR to each country, and a 1% transaction margin. Slide 11 "Community (P2P)" gross profit opportunity is calculated based on the approximate gross profit percentage of Cash App's Community (P2P) volume opportunity. The Community (P2P) volume opportunity is calculated based on U.S. Census data on adult population as of 2019, adjusted for population growth, multiplied by estimated monthly peer-to-peer 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 2021. "Financial Services" gross profit opportunity is calculated by multiplying the approximate Cash App Card gross profit percentage by total debit and prepaid transaction volumes per The Nilson Report (December 2021). "Bitcoin (Consumer Trading)" gross profit opportunity is calculated by taking the average annual bitcoin trading volume between 2020-2021 per CoinGecko, adjusting for U.S. volume and washed trades, multiplied by the approximate Cash App bitcoin gross profit percentage. 59#60BLOCK Appendix Slide 21 Square "Return on investment (ROI)" measures the effectiveness of sales and marketing spend. ROI is calculated by dividing cumulative cohort gross profit of each cohort of sellers by GAAP sales and marketing expenses for the applicable period, excluding the following: Cash App sales and marketing expenses, Caviar sales and marketing expenses, and the portion of sales and marketing expenses from the legacy Weebly business. Cumulative cohort gross profit excludes gross profit from hardware, Square Gift Cards, and Weebly prior to the acquisition. We begin measuring returns for the first full quarter's worth of data for each cohort. Slide 22 Square "gross profit retention" 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, Square Gift Cards, Caviar, and Weebly prior to the acquisition). We do not include hardware or gift cards because they are typically non-recurring in nature, gift cards do not have a material impact to the trend, and we view hardware as an acquisition tool and not a profit center for our business. Slide 31 "Transacting active" or "active" is a Cash App account that has at least one financial transaction using any product or service within Cash App during the specified period. A transacting active for a specific Cash App product has at least one financial transaction using that product during the specified period and is referred to as an active. Certain of these accounts may share an alias identifier with one or more other transacting active accounts. This could represent, among other things, one customer with multiple accounts or multiple customers sharing one alias identifier (for example, families). Slide 36 Cash App "acquisition spend" includes paid marketing, referrals and incentives, brand awareness and social marketing expenses for a given period, and excludes peer-to-peer processing and risk loss. Slide 37 Cash App "cohort" represents the new actives onboarded to Cash App during a given period. Cash App "Return on investment (ROI)" or "payback period" measures the effectiveness of acquisition marketing spend, and is calculated by taking a given Cash App monthly cohort's cumulative gross profit net of peer-to-peer expenses, and dividing by acquisition marketing spend for the month when the given cohort was onboarded. Cash App gross profit net of P2P expenses is calculated as gross profit across Cash App transaction-based profit, Cash App 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 expenses" or processing costs and risk loss on peer-to-peer transactions. Slide 38 Cash App "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 determined based on the date they first became a transacting active on the platform. For example, retention for our 2019 cohort is the average annual gross profit growth from actives who had their first transaction in 2019. 60#61BLOCK Appendix Slide 42 "Square active sellers" are defined as processing more than 5 payments over the last four quarters. "Afterpay active sellers" are defined as having processed at least one transaction in the last 12 months and is measured on a per channel basis. "Afterpay active consumers" are defined as having transacted at least once in the last 12 months. "Cash App active" is a Cash App account that has at least one financial transaction using any product or service within Cash App during the specified period. A transacting active for a specific Cash App product has at least one financial transaction using that product during the specified period and is referred to as an active. Certain of these accounts may share an alias identifier with one or more other transacting active accounts. This could represent, among other things, one customer with multiple accounts or multiple customers sharing one alias identifier (for example, families). Slide 45 "ANZ" refers to Australia and New Zealand. "SKU" represents a stock-keeping unit, or a distinct type of item for sale, purchased, or tracked in inventory. "Risk Loss" or Losses on Consumer Receivables for Afterpay represents an assessment of expected credit losses over the term of the receivables. Slide 46 "Lead generation" is a referral for an Afterpay seller, such as a search, click, or purchase within the Afterpay App, or when a potential customer is directed to a seller's site. "Afterpay active consumers" are defined as having transacted at least once in the last 12 months. "Cash App active" is a Cash App account that has at least. one financial transaction using any product or service within Cash App during the specified period. A transacting active for a specific Cash App product has at least one financial transaction using that product during the specified period and is referred to as an active. Certain of these accounts may share an alias identifier with one or more other transacting active accounts. This could represent, among other things, one customer with multiple accounts or multiple customers sharing one alias identifier (for example, families). "Enterprise sellers" are defined as sellers processing more than $50M in annualized payment volumes, as either GPV through Square or GMV through Afterpay. "Shop Directory" is Afterpay's online and in-app directory that showcases Afterpay active sellers and affiliate brands. 61#62BLOCK Appendix Slide 55 "Free cash flow" is defined as net cash provided by (used in) operating activities adjusted to eliminate for the effects of settlements receivables, customers payable, settlements payable, and PPP loans less purchase of property and equipment. Additionally, we exclude the effects of PPP loans as we believe the amounts are not reflective of our ongoing operations. We include the impact of purchases of property and equipment because we consider these capital expenditures to be a necessary component of our ongoing operations. Slide 56 "Turnover", or "turnover of receivables", or "accounts receivable turnover" is the number of times per year that Afterpay collects its average consumer receivable. "Loss rate" for Afterpay are Losses on Consumer Receivables, and represents an assessment of expected credit losses over the term of the receivables, and for Square Loans are loan losses on loan originations, and represents an assessment of expected credit losses over the term of the loan. "Duration" for Square Loans represents the average length of time for a seller to repay their loan, and for Afterpay represents the average length of time for a consumer to complete their final repayment on a BNPL transaction. 62 62#63BLOCK Reconciliations Discussion of financial results excluding Caviar (in thousands) ($ in thousands) Total gross profit Less: Caviar contribution to total gross profit Gross profit excluding Caviar 2015 2016 2017 2018 2019 2020 2021 345,195 576,038 839,306 1,303,700 1,889,685 2,733,409 4,419,823 (462) 6,967 15,578 36,369 41,590 345,657 569,071 823,728 1,267,331 1,848,095 2,733,409 4,419,823 63#64BLOCK 64 Cash App Margins - Reconciliation to GAAP Variable expenses are investments that we incur to drive the next dollar of gross profit growth, and these typically scale with gross profit. These include discretionary expenses such as sales & marketing investments and teams, customer success teams, as well as non-discretionary expenses such as risk loss, or Cash App peer-to-peer expenses on transaction costs and risk loss. Fixed expenses are investments that may drive longer-term growth, and generally do not scale with an additional dollar of gross profit. These include expenses such as our product and general & administrative teams, professional fees incurred, and corporate overhead expenses such as rent & facilities. ($ in thousands) Cash App gross profit Variable expenses 2018 2019 2020 2021 194,835 457,668 1,225,578 2,070,847 Less: Transaction, loan, and advance losses 7,791 14,699 45,694 Less: Marketing expenses (Cash P2P marketing costs, card issuance costs, marketing expense, partnership fees) Less: Variable personnel expenses (sales & marketing personnel, contractor personnel, travel & entertainment) Less: Cloud storage and processing 162,127 311,204 726,160 126,803 1,007,873 12,088 30,741 55,328 134,626 2,528 5,048 12,509 27,389 Less: Taxes and licenses Total variable expenses Cash App gross profit less variable expenses Cash App structural margin (% of Cash App gross profit) Fixed expenses Less: Fixed personnel expenses (G&A and product development personnel) Less: Professional fees and subscriptions (including add backs for acquisitions) Less: Facilities expenses Total fixed expenses Cash app gross profit less variable and fixed expenses Cash App adjusted fully burdened profit margin (% of Cash App gross profit) 1,995 5,234 10,211 13,160 186,529 366,926 849,902 1,309,851 8,306 4% 90,742 375,676 760,996 20% 31% 37% 288,530 123,375 105,797 517,702 243,294 12%#65BLOCK 65 Square Margins - Reconciliation to GAAP Variable expenses are investments that we incur to drive the next dollar of gross profit growth, and these typically scale with gross profit. These include discretionary expenses such as sales & marketing investments and teams, customer success teams, as well as non-discretionary expenses such as risk loss. Fixed expenses are investments that may drive longer-term growth, and generally do not scale with an additional dollar of gross profit. These include expenses such as our product and general & administrative teams, professional fees incurred, and corporate overhead expenses such as rent & facilities. ($ in thousands) Square gross profit Variable expenses 2018 2019 2020 2021 1,072,496 1,390,427 1,507,831 2,316,671 Less: Transaction, loan, and advance losses 80,248 112,224 Less: Marketing expenses (marketing expense, partnership fees, hardware marketing, onboarding costs) Less: Variable personnel expenses (sales & marketing personnel, contractor personnel, travel & entertainment) Less: Cloud storage and processing 114,924 148,530 131,975 199,111 61,188 308,665 116,334 134,573 165,763 255,210 32,037 39,100 51,715 72,479 Less: Taxes and licenses 11,426 19,235 20,437 18,334 Total variable expenses 354,969 453,662 569,001 715,876 Square gross profit less variable expenses Square structural margin (% of Square gross profit) Fixed expenses 717,527 936,765 938,830 1,600,795 67% 67% 62% 69% Less: Fixed personnel expenses (G&A and product development personnel) Less: Professional fees and subscriptions (including add backs for acquisitions) Less: Facilities expenses Total fixed expenses Square gross profit less variable and fixed expenses Square adjusted fully burdened profit margin (% of Square gross profit) 575,746 118,373 122,203 816,322 784,473 34%#66BLOCK Fixed Expenses Variable expenses are investments that we incur to drive the next dollar of gross profit growth, and these typically scale with gross profit. These include discretionary expenses such as sales & marketing investments and teams, customer success teams, as well as non-discretionary expenses such as risk loss, or Cash App peer-to-peer expenses on transaction costs and risk loss. Fixed expenses are investments that may drive longer-term growth, and generally do not scale with an additional dollar of gross profit. These include expenses such as our product and general & administrative teams, professional fees incurred, and corporate overhead expenses such as rent & facilities. ($ in thousands) Total gross profit Fixed expenses 2015 345,195 2017 839,306 2019 1,889,685 2021 66 4,419,823 Plus: Fixed personnel expenses (G&A and product development personnel) 129,923 243,310 464,090 886,433 Plus: Professional fees and subscriptions (including add back for acquisitions) 38,185 56,594 68,140 252,713 Plus: Facilities expenses 35,022 50,066 109,238 236,332 Total fixed expenses Total fixed expenses (% of gross profit) 203,130 349,970 641,468 1,375,478 59% 42% 34% 31%#67BLOCK Reconciliations Discussion of Square financial results excluding Hardware and Starbucks (in thousands) 67 ($ in thousands) 2015 2016 2017 2018 2019 2020 2021 Square gross profit 345,283 564,022 776,633 1,072,496 1,390,427 1,507,831 2,316,671 Less: Hardware contribution to Square gross profit (14,497) (24,255) (20,978) (25,611) (51,880) (52,688) (75,506) Less: Starbucks contribution to Square gross profit (23,155) 9,142 Square gross profit excluding Hardware and Starbucks 382,935 579,135 797,611 1,098,107 1,442,307 1,560,519 2,392,177#68BLOCK Free Cash Flow - Reconciliation to GAAP We define free cash flow as net cash provided by (used in) operating activities adjusted to eliminate for the effects of settlements receivables, customers payable, settlements payable, and PPP loans less purchase of property and equipment. We believe that it is useful exclude the effects of customers payable, settlements receivables and settlements payable because the amounts represent customer transactions, move in tandem, and which may result in significant fluctuations depending on timing of the end of reporting period and whether such date is a bank holiday or a weekend. Accordingly, we do not believe such changes are reflective of the cash generation from our ongoing operations. Additionally, we exclude the effects of PPP loans as we believe the amounts are not reflective of our ongoing operations. We include the impact of purchases of property and equipment because we consider these capital expenditures to be a necessary component of our ongoing operations. 68 ($ in thousands) 2014 2015 2016 2017 2018 2019 2020 2021 Net cash provided by (used in) operating activities (112,379) 21,123 23,131 127,711 195,109 327,630 173,110 847,830 Addback: Changes in settlements receivable 50,361 27,420 177,662 305,831 (245,795) 326,596 547,484 346,217 Reversal of: Changes in customers payable (49,971) (69,547) (172,446) (242,310) 215,378 (181,520) (371,598) (171,555) Changes in settlements payable (13,105) (38,046) (63,637) 60,651 (41,697) (143,528) (15,249) Purchases and originations of PPP loans 873,579 681,849 Sales, principal payments, and forgiveness of PPP loans (452,593) (688,091) (111,989) (34,109) (9,699) 127,595 225,343 431,009 626,454 1,001,001 Less: Purchase of property and equipment Free cash flow (28,794) (37,432) (25,433) (26,097) (61,203) (62,498) (138,402) (134,320) (140,783) (71,541) (35,132) 101,498 164,140 368,511 488,052 866,681