Thoughts on Square's Q4

Few tidbits/thoughts:

Dorsey owns about 60 million shares of Square (https://www.forbes.com/sites/bizcarson/2019/01/25/forbes-fac…)

  • On the call, Square did beta testing on their sellers, 40% of them did not have a business debit card.

  • A Square seller was on the call - I do not know if these are pre-planned or used to “market” for Square, but the question was interesting - asking about using Square solely as their one stop shop as a bank essentially. This is interesting given Square going for bank charter.

  • Cash App grew more than double YOY. I wonder how much more they can monetize it; they mentioned the current levers, and implied there would be more.

  • I do not know how much bigger the market cap of this company can grow easily. Meaning, I think the easy part has been done in terms of stock price going up rapidly over the last few years. But that said, for a company about 30 billion in market cap, it isn’t easy to have 51% YOY revenue growth or 64% adjusted YOY revenue growth.

  • I saw an article that question GPV growth downticking being a negative compared to revenue coming from the rising services/subs growth. I think it will be harder to keep adding GPV growth as Square becomes a larger company.

  • I think Square is just doing what they do; nothing significant has changed. Innovation rapidly happening; still growing. Just very high expectations, but even with those, they are doing fine.

  • Ahuja seemed great on her first conference call - knowledgeable, confident, well spoken. Looks like another stellar hire on first impression.

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