Finally got around to reading the transcripts and slides from $SQ's recent investor day and wow...I've never come away more incrementally bullish on a company after an investor day.

The whole team and in particular Amrita do an excellent job of clearly articulating the different businesses, the strategy and the economics. Unlike many investor days, Block's is extremely digestible and I came away with a clearer understanding of Block's businesses and how they interact.

Square (Seller) is an ecosystem all to itself.

Cash App is an ecosystem all to itself.

Afterpay is the ecosystem that is going to serve as the connective tissue between these two ecosystems, creating and ecosystem of ecosystems.

Afterpay was the asset that both the leaders of Square and Cash App said they wanted for their own ecosystem, independent of the other ecosystem. It's going to be integrated into Cash App, driving discovery for consumers and serving as a lead generation platform for merchants, and it's going to be integrated into Square, giving customers another way to pay and driving conversion and higher average order values (AOVs).

The cohort economics for both Square and Cash App are stunning. Block admitted that they have been too conservative in growing each business, in particular Cash App, and are going to be ramping investment and increasing CAC to grow more aggressively given the exceptionally strong customer cohort economics they're seeing from both platforms.

Square and Cash App each have two of the most desirable traits in business: network effects and a royalty on their customer's growth. Afterpay will start to layer network effects on top of network effects, and accelerate global expansion efforts as they seek to leverage cross-border network effects.

And all of this will be growing concurrent with developing their Bitcoin wallet, Bitcoin mining hardware, TBD and Spiral which A) will drive Bitcoin adoption and decentralization, strengthening the network but also B) integrate with Cash App, increase consumer touch points and monetization opportunities, and drive adoption (especially globally and in emerging markets) and those same cross-border network effects.

The full transcript is worth a read: https://investors.block.xyz/Investor-Day-2022/#

But if you're pressed for time, this slide deck that Amrita presented drives home the most important points, in my view: https://s29.q4cdn.com/628966176/files/doc_presentations/2022/05/Business-Model-Block-Investor-Day-2022-(1).pdf

Disclosure: long $SQ