FinancialsSARAH FRIAR

144

Powerful business model

TREMENDOUS SCALE

SIGNIFICANT GROWTH

ATTRACTIVE COHORT ECONOMICS

STRONG MARGIN TRAJECTORY

145

Significant growth at scale

A reconciliation of non-GAAP metrics used in this document to their nearest GAAP equivalents is provided in the appendix to this document. “At IPO” represents Q3 2015.

At IPO Q1 2017

$14B

$10B

43% GROWTH

GROSS PAYMENT VOLUME (GPV )

At IPO Q1 2017

$204M

$118M

73% GROWTH

ADJUSTED REVENUE

146

Key drivers of growth

NEW SELLERS

STRONG REVENUE RETENTION

NEW PRODUCTS

Q1 2015

Q2 Q3 Q4 Q1 2016

Q2 Q3 Q4 Q1 2017

($36M)

147

Initial sales and marketing investment of $36M Q1 2015 Cohort

SALES AND MARKETING EXPENSE

Q1 2015

Q2 Q3 Q4 Q1 2016

Q2 Q3 Q4 Q1 2017

$40M

($36M)

148

Profit exceeds initial sales and marketing in 4–5 quarters Q1 2015 Cohort

Cumulative cohort transaction-based profit is based on the Q1 2015 cohort of sellers.

$40M IN CUMULATIVE TRANSACTION-BASED PROFIT AFTER FIVE QUARTERS

CUMULATIVE COHORT TRANSACTION-BASED PROFIT

SALES AND MARKETING EXPENSE

149

… and continues to grow thereafter Q1 2015 Cohort

Q1 2015

Q2 Q3 Q4 Q1 2016

Q2 Q3 Q4 Q1 2017

$62M

($36M)

Cumulative cohort transaction-based profit is based on the Q1 2015 cohort of sellers.

$62M IN CUMULATIVE TRANSACTION-BASED PROFIT AFTER EIGHT QUARTERS

CUMULATIVE COHORT TRANSACTION-BASED PROFIT

SALES AND MARKETING EXPENSE

150ROI is calculated by dividing cumulative cohort transaction-based profit of the Q1 2015 cohort of sellers by sales and marketing expenses.

Our cohort economics highlight go-to-market efficiency Q1 2015 Cohort

Q1 2015

Q2 2016

Q1 2017

$62M

$40M

($36M)

ROI AFTER EIGHT QUARTERS

ROI AFTER FIVE QUARTERS

1.7X

1.1X

2012 2013 2014 2015 2016

107% TRANSACTION-BASED PROFIT RETENTION

151Transaction-based profit retention calculated as year-over-year retention of transaction-based revenue less transaction-based costs for our cohorts on average for the last four quarters ended March 31, 2017.

Consistent cohort growth leads to strong revenue visibility GPV by Annual Cohort

2016 COHORT

2014 COHORT

2013 COHORT

PRE-2012 COHORT

2015 COHORT

152

153

Cross-selling enhances cohort economics Illustrative Seller Example—Adjusted Revenue opportunity for an individual seller Retail seller, $1M in annual sales, $500K in GPV, three locations

Transaction Processing

Invoices Capital Appointments Customer Engagement

Total

$9,300$900

$900

$2,500

$2,000

$3,000

LOW CUSTOMER ACQUISITION COSTS3x INCREASE IN ADJUSTED

REVENUE

154

Cross-selling enhances cohort economics Q1 2015 Cohort

Q1 2015

Q2 Q3 Q4 Q1 2016

Q2 Q3 Q4 Q1 2017

($36M)

Cumulative cohort transaction-based profit and subscription and services-based revenue (excluding hardware and Gift Cards revenue) is based on the Q1 2015 cohort of sellers.

$62M

CUMULATIVE SUBSCRIPTION AND SERVICES-BASED REVENUE

$79MIN CUMULATIVE ADJUSTED REVENUE AFTER EIGHT QUARTERS

$79M

CUMULATIVE COHORT TRANSACTION-BASED PROFIT

SALES AND MARKETING EXPENSE TO ACQUIRE

155

Cross-selling enhances cohort economics

REVENUE RETENTIONPAYBACK

Transaction- Based Profit

Adjusted Revenue

107%

113%

Transaction- Based Profit

Adjusted Revenue

3–4 QUARTERS

4–5 QUARTERS

Payback for transaction-based profit and Adjusted Revenue represents the average number of quarters it takes for a quarterly cohort of sellers’ cumulative transaction-based revenue net of transaction-based costs and Adjusted Revenue (excluding hardware and Gift Cards revenue) respectively to surpass our sales and marketing spending in the quarter in which we acquired that cohort. Revenue retention for transaction-based profit and Adjusted Revenue represents average retention of transaction-based revenue net of transaction-based costs and Adjusted Revenue (excluding hardware and Gift Cards revenue) respectively in the last four quarters ended March 31, 2017.

156

Industry-leading revenue retention

Sources: Pacific Crest Public SaaS Company Disclosure Metrics for Retention and Renewal Rates, 2016 Pacific Crest Private SaaS Company Survey, company’s most recent SEC filings. *2016 Pacific Credit Private SaaS Company Survey results.

**Includes Amber Road, Benefitfocus, Brightcove, Castlight, ChannelAdvisor, Cvent, Demandware, Five9, GoDaddy, HubSpot, Instructure, Marin Software, Marketo, MINDBODY, New Relic, Paylocity, Responsys, Shopify, Twilio, Xactly, Zendesk.

***Average retention for Square Adjusted Revenue (excluding hardware and Gift Cards revenue) for the last four quarters ended March 31, 2017.

Private SaaS Median*

Public SaaS Average**

Square***

5%

2%

13%

REVENUE RETENTION METRICS

157Adjusted EBITDA margins calculated on Adjusted Revenue basis. See Appendix for non-GAAP reconciliation.

Investing in growth while benefiting from operating leverage

Q1 2014

Q2 Q3 Q4 Q1 2015

Q2 Q3 Q4 Q1 2016

Q2 Q3 Q4 Q1 2017

13%16%

7%7%

(6%)(5%)

(13%)

1%

(23%)

(13%)(17%)

(24%)

(53%)(53%)

(24%)(17%)

(13%)

(23%)

1%

(13%)

(5%) (6%)

7% 7%

16% 13%ADJUSTED EBITDA MARGIN

ADJUSTED REVENUE

158Operating Expenses excludes share-based compensation expense and the litigation settlement with Robert E. Morley in 2016. Other expenses include transaction and advance losses and impairment of intangible assets.

Investing in growth while benefiting from operating leverage

NON-GAAP OPERATING EXPENSES

2013 2014 2015 2016

132%

117%

98%

78%

PRODUCT DEVELOPMENT

SALES AND MARKETING

GENERAL AND ADMINISTRATIVE

OTHER EXPENSES

159

Growing GPV while driving down transaction losses over time

7%

2012 20162012 2016

$50B

$7B

2012 2016

$45M

$11M

GROSS PAYMENT VOLUME TRANSACTION LOSS TRANSACTION LOSS AS A PERCENTAGE OF GPV

8x GROWTH 4x GROWTH

0.17%

0.09%

160

Our business benefits from high incremental margin

FIXED COSTS VARIABLE COSTS

GROWTH INVESTMENTS

PRODUCT ENGINEERING

CUSTOMER ACQUISITION

SALES AND MARKETING

HARDWARE DEVELOPMENT

ONGOING VARIABLE

COST OF GOODS SOLD

DATA SCIENCE RISK LOSS

INFRASTRUCTURE INVESTMENTS

RISK OPERATIONS DATA CENTER AND LICENSE FEES

CORPORATE OPERATIONS

SUPPORT AND COMPLIANCE

SUBSCRIPTION AND SERVICES-BASEDTRANSACTION-BASED

161Variable costs include expenses related to sales and marketing, cost of goods sold, risk loss, data center and license fees, support, and compliance.

Our business benefits from high incremental margin Variable cost as a percentage of Adjusted Revenue

CUSTOMER ACQUISTION

ONGOING VARIABLE

CUSTOMER ACQUISTION

ONGOING VARIABLE

162

An overview of our investments today

PRODUCT DEVELOPMENT SALES AND MARKETING GENERAL AND ADMINISTRATIVE

Engineering, data science and design,

hardware development

Paid marketing, direct sales, account management, mag stripe reader, Square Cash peer-to-peer costs

Finance, legal, communications, customer support, product

operations, risk operations, HR

163

We are investing in sustainable growth

BUILDING A WORLD-CLASS TEAM

GO TO MARKET GENERAL AND ADMINISTRATIVE EFFICIENCY

Continue to invest in talent acquisition to build and

scale new products

Maintaining go-to-market efficiency and expanding into

new channels and markets

… while leveraging machine learning to drive greater operational

efficiency as we scale

164

Our investment road map

HORIZON 1

Proven investments with strong predictability

PAYMENTS

POINT OF SALEHORIZON 2

Newer offerings that are beginning to scale

CAVIAR

INTERNATIONAL

SQUARE CAPITAL

HORIZON 3

Bold bets: Long-term growth drivers

CUSTOMER ENGAGEMENT

SQUARE PAYROLL

BUILD WITH SQUARE

SQUARE CASH

1

2

3

165See appendix for GAAP reconciliation to Adjusted Revenue and Adjusted EBITDA. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Adjusted Revenue.

Long-term targets

2015 2016 2017 Guidance (Midpoint) Long Term

ADJUSTED REVENUE GROWTH

64% 52% 31% 20%–25%

ADJUSTED EBITDA MARGIN (9%) 7% 13% 35%–40%

166Data points shown above are as of March 31, 2017. Active sellers defined as sellers with five or more payments in the last 12 months. See appendix for GAAP reconciliation to Adjusted Revenue and Adjusted EBITDA. Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Adjusted Revenue. Payback calculated as the number of quarters it takes for a cohort of sellers’ cumulative Adjusted Revenue (excluding hardware and Gift Cards revenue) to surpass our sales and marketing spending in the quarter in which we acquired that cohort. Revenue retention rate is calculated as year-over-year retention of Adjusted Revenue (excluding hardware and Gift Cards revenue) for our cohorts on average for the last four quarters.

Our business model provides a compelling investment opportunity

TREMENDOUS SCALE Millions of active sellers, $53 billion trailing four quarter GPV

SIGNIFICANT GROWTH 39% Adjusted Revenue year-over-year growth

ATTRACTIVE COHORT ECONOMICS

113% Adjusted Revenue retention rate and 3-to-4 quarter payback

STRONG MARGIN TRAJECTORY

$27 million in Adjusted EBITDA, representing 13% margin

Q&A

168

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AppendixGAAP RECONCILIATION

171

Adjusted Revenue—Reconciliation to GAAP Total Net Revenue Adjusted Revenue is a non-GAAP financial measure that reflects our total net revenue less transaction-based costs, and excludes Starbucks transaction-based revenue.

We believe it is useful to exclude transaction costs from Adjusted Revenue as this is a primary metric used by management to measure our business performance and it affords greater comparability to other payment processing companies.

Adjusted Revenue has limitations as a financial measure, should be considered as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with GAAP. The following table presents a reconciliation of total net revenue to Adjusted Revenue for each of the periods indicated:

Three Months Ended

Mar. 31, 2014

Jun. 30, 2014

Sep. 30, 2014

Dec. 31, 2014

Mar. 31, 2015

Jun. 30, 2015

Sep. 30, 2015

Dec. 31, 2015

Mar. 31, 2016

Jun. 30, 2016

Sep. 30, 2016

Dec. 31, 2016

Mar. 31, 2017

(in thousands) (unaudited)

TOTAL NET REVENUE 165,082 206,796 227,420 250,894 250,557 310,013 332,188 374,360 379,269 438,533 439,002 451,917 461,554

LESS: STARBUCKS TRANSACTION-BASED REVENUE (26,466) (30,147) (29,895) (36,516) (29,237) (33,630) (32,332) (47,084) (38,838) (32,867) (7,164) (34) 0

LESS: TRANSACTION-BASED COSTS (86,275) (109,801) (122,425) (132,357) (132,107) (165,823) (182,007) (192,730) (194,276) (234,857) (254,061) (260,006) (257,778)

ADJUSTED REVENUE 52,341 66,848 75,100 82,021 89,213 110,560 117,849 134,546 146,155 170,809 177,777 191,877 203,776

172

Adjusted EBITDA—Reconciliation to GAAP Net Loss Adjusted EBITDA is a non-GAAP financial measure that represents our net 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 gain or loss on the sale of property and equipment, and impairment of intangible assets. 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.

Adjusted EBITDA has limitations as a financial measure, should be considered as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with GAAP. The following presents a reconciliation of net loss to Adjusted EBITDA for each of the periods indicated.

Three Months Ended

Mar. 31, 2014

Jun. 30, 2014

Sep. 30, 2014

Dec. 31, 2014

Mar. 31, 2015

Jun. 30, 2015

Sep. 30, 2015

Dec. 31, 2015

Mar. 31, 2016

Jun. 30, 2016

Sep. 30, 2016

Dec. 31, 2016

Mar. 31, 2017

(in thousands) (unaudited)

NET LOSS (43,991) (35,364) (37,666) (37,072) (47,978) (29,620) (53,930) (48,289) (96,755) (27,345) (32,323) (15,167) (15,090)

STARBUCKS TRANSACTION-BASED REVENUE (26,466) (30,147) (29,895) (36,516) (29,237) (33,630) (32,332) (47,084) (38,838) (32,867) (7,164) (34) —

STARBUCKS TRANSACTION-BASED COSTS 33,016 37,496 37,377 43,066 36,211 40,921 41,410 46,896 36,610 28,672 4,528 (49) —

SHARE-BASED COMPENSATION EXPENSE 6,219 8,102 10,332 11,447 13,461 15,232 20,793 32,806 31,198 36,922 36,779 33,887 31,670

DEPRECIATION AND AMORTIZATION 3,794 3,919 5,130 5,743 5,546 6,410 6,570 9,100 9,118 9,018 9,681 9,928 9,437

LITIGATION SETTLEMENT EXPENSE — — — — — — — — 50,000 (2,000) — — —

INTEREST (INCOME) AND EXPENSE 456 (494) 1,390 810 1,210 394 781 (772) (717) (327) 111 153 499

PROVISION (BENEFIT) FOR INCOME TAXES (810) 268 285 1,697 418 1,152 932 1,244 339 312 230 1,036 509

LOSS ON SALE OF PROPERTY AND EQUIPMENT — — — 133 240 — — 30 (38) 169 (219) 39 —

ADJUSTED EBITDA (27,782) (16,220) (13,047) (10,692) (20,129) 859 (15,776) (6,069) (9,083) 12,554 11,623 29,793 27,025

173

Adjusted Net Income (Loss) Reconciliation Adjusted Net Income (Loss), and Adjusted EPS are non-GAAP financial measures that represent our net loss and net loss per share, adjusted to eliminate the effect of Starbucks, share-based compensation expenses, amortization of intangible assets, amortization of debt discount and issuance costs in connection with our offering of convertible senior notes in the first quarter of 2017, the litigation settlement with Robert E. Morley, the gain or loss on the sale of property and equipment, and impairment of intangible assets. Adjusted EPS (basic) is computed by dividing the Adjusted Net Income (Loss) by the weighted-average number of shares of common stock outstanding during the period. Adjusted EPS (diluted) is computed by dividing Adjusted Net Income (Loss) by the weighted-average number of shares of common stock outstanding, including all potentially dilutive shares. Adjusted EPS (diluted) is the same as Adjusted EPS (basic) because the effects of potentially dilutive items were anti-dilutive given the Adjusted Net Loss position.

Adjusted EPS has limitations as a financial measure, should be considered as supplemental in nature, and is not meant as a substitute for the related financial information prepared in accordance with GAAP. The following presents a reconciliation of net loss to Adjusted EBITDA for each of the periods indicated.

Three Months EndedMar. 31,

2015Jun. 30,

2015Sep. 30,

2015Dec. 31,

2015Mar. 31,

2016Jun. 30,

2016Sep. 30,

2016Dec. 31,

2016Mar. 31,

2017

(in thousands) (unaudited)

NET LOSS ($47,978) ($29,620) ($53,930) ($48,289) ($96,755) ($27,345) ($32,323) ($15,167) ($15,090)STARBUCKS TRANSACTION-BASED REVENUE (29,237) (33,630) (32,332) (47,084) (38,838) (32,867) (7,164) (34) 0STARBUCKS TRANSACTION-BASED COSTS 36,211 40,921 41,410 46,896 36,610 28,672 4,528 (49) 0SHARE-BASED COMPENSATION EXPENSE 13,461 15,232 20,793 32,806 31,198 36,922 36,779 33,887 31,670AMORTIZATION OF INTANGIBLE ASSETS 1,095 1,651 1,592 3,165 2,713 2,134 2,076 2,090 2,038LITIGATION SETTLEMENT EXPENSE — — — — 50,000 (2,000) — — —AMORTIZATION OF DEBT DISCOUNT AND ISSUANCE COSTS — — — — — — — — 1,390(GAIN) LOSS ON SALE OF PROPERTY AND EQUIPMENT 240 — — 30 (38) 169 (219) 39 —

ADJUSTED NET INCOME (LOSS) ($26,208) ($5,446) ($22,467) ($12,476) ($15,110) $5,685 $3,677 $20,766 $20,008

ADJUSTED EPS (DILUTED) ($0.18) ($0.04) ($0.15) ($0.05) ($0.05) $0.02 $0.01 $0.06 $0.05ADJUSTED EPS (BASIC) ($0.18) ($0.04) ($0.15) ($0.05) ($0.05) $0.02 $0.01 $0.05 $0.05

DILUTED WEIGHTED-AVERAGE SHARES 145,069 149,253 152,334 234,548 331,324 334,488 343,893 356,343 366,737BASIC WEIGHTED-AVERAGE SHARES 145,069 149,253 152,334 234,548 331,324 365,731 370,746 382,531 404,319

174

Reconciliation to GAAP Operating ExpensesYear Ended December 31,

2013 2014 2015 2016

(in thousands) (unaudited)

OPERATING EXPENSES ($233,727) ($376,565) ($544,488) ($746,491)SHARE-BASED COMPENSATION 14,658 36,100 82,292 138,786DEPRECIATION AND AMORTIZATION 8,272 17,584 20,804 27,536LITIGATION SETTLEMENT EXPENSE 0 — — 48,000LOSS (GAIN) ON SALE OF FIXED ASSETS 2,705 133 270 (49)NON-GAAP OPERATING EXPENSES ($208,092) ($322,748) ($441,122) ($532,218)

PRODUCT DEVELOPMENT ($82,864) ($144,637) ($199,638) ($268,537)SHARE-BASED COMPENSATION 8,820 24,758 54,738 91,404DEPRECIATION AND AMORTIZATION 4,124 10,775 11,347 13,190LOSS (GAIN) ON SALE OF FIXED ASSETS — — — —NON-GAAP PRODUCT DEVELOPMENT ($69,920) ($109,104) ($133,553) ($163,943)

SALES AND MARKETING ($64,162) ($112,577) ($145,618) ($173,876)SHARE-BASED COMPENSATION 1,235 3,738 7,360 14,122DEPRECIATION AND AMORTIZATION 18 108 10 30LOSS (GAIN) ON SALE OF FIXED ASSETS 0 — 53 73NON-GAAP SALES AND MARKETING ($62,909) ($108,731) ($138,195) ($159,651)

GENERAL AND ADMINISTRATIVE ($68,942) ($94,220) ($143,466) ($251,993)SHARE-BASED COMPENSATION 4,603 7,604 20,194 33,260DEPRECIATION AND AMORTIZATION 4,130 6,701 9,447 14,316LITIGATION SETTLEMENT EXPENSE 0 — — 48,000LOSS (GAIN) ON SALE OF FIXED ASSETS 2,705 133 217 (122)NON-GAAP GENERAL AND ADMINISTRATIVE ($57,504) ($79,782) ($113,608) ($156,539)

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