SEGMENT AND GEOGRAPHICAL INFORMATION

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

SEGMENT AND GEOGRAPHICAL INFORMATION

Effective June 30, 2020, the Company changed its operating segments to reflect the manner in which the Company's CODM reviews and assesses performance. Accordingly, the Company has two reportable segments, which are Seller and Cash App. Disclosures regarding the Company’s reportable segments for prior periods have been adjusted to conform to the current period presentation. Seller and Cash App are defined as follows:

•Seller includes managed payment services, software solutions, hardware, and financial services offered to sellers, excluding those that involve Cash App.

•Cash App includes the financial tools available to individuals within the mobile Cash App, including peer-to-peer payments, bitcoin and stock investments. Cash App also includes Cash Card which is linked to customer stored balances that customers can use to pay for purchases or withdraw funds from an ATM.

The primary financial measures used by the CODM to evaluate performance and allocate resources are revenue and gross profit. The CODM does not evaluate performance or allocate resources based on segment asset data, and therefore such information is not included.

Information on the reportable segments revenue and segment gross profit are as follows (in thousands):

	Three Months Ended March 31, 2021
	Cash App		Seller		Total
Revenue
Transaction-based revenue	$	91,959	$	867,774	$	959,733
Subscription and services-based revenue	436,589		121,092		557,681
Hardware revenue	—		28,788		28,788
Bitcoin revenue	3,511,068		—		3,511,068
Segment revenue	$	4,039,616	$	1,017,654	$	5,057,270
Segment gross profit	$	495,485	$	468,016	$	963,501

	Three Months Ended March 31, 2020
	Cash App		Seller		Total
Revenue
Transaction-based revenue	$	27,819	$	730,282	$	758,101
Subscription and services-based revenue	193,725		102,510		296,235
Hardware revenue	—		20,675		20,675
Bitcoin revenue	306,098		—		306,098
Segment revenue	$	527,642	$	853,467	$	1,381,109
Segment gross profit	$	182,732	$	355,769	$	538,501

A reconciliation of total segment gross profit to the Company’s income (loss) before applicable income taxes is as follows (in thousands):

	Three Months Ended March 31,
	2021		2020
Total segment gross profit	$	963,501	$	538,501
Less: Product development	308,678		194,986
Less: Sales and marketing	349,460		194,535
Less: General and administrative	195,909		129,495
Less: Transaction and loan losses	20,395		108,883
Less: Bitcoin impairment losses	19,860		—
Less: Amortization of acquired customer assets	1,463		890
Less: Interest expense, net	253		9,206
Less: Other expense, net	27,528		5,862
Income (loss) before applicable income taxes	$	39,955	$	(105,356)

Revenue

Revenue by geography is based on the addresses of the sellers or customers. The following table sets forth revenue by geographic area (in thousands):

	Three Months Ended March 31,
	2021		2020
Revenue
United States	$	4,963,335	$	1,313,586
International	93,935		67,523
Total net revenue	$	5,057,270	$	1,381,109

No individual country from the international markets contributed in excess of 10% of total revenue for the three months ended March 31, 2021 and 2020.

Long-Lived Assets

The following table sets forth long-lived assets by geographic area (in thousands):

	March 31, 2021		December 31, 2020
Long-lived assets
United States	$	1,100,550	$	1,086,379
International	54,716		58,342
Total long-lived assets	$	1,155,266	$	1,144,721

Assets by reportable segment were not included, as this information is not reviewed by the CODM to make operating decisions or allocate resources, and is reviewed on a consolidated basis.