Adjusted Net Income (Loss) Reconciliation UNAUDITED In thousands, except per share data THREE MONTHS ENDED Mar 31, 2018 Mar 31, 2017 Net loss $ (23,986) $ (15,090) Share-based compensation expense 46,824 31,670 Amortization of intangible assets 1,851 2,121 Amortization of debt discount and issuance costs 4,393 1,390 Gain on sale of property and equipment (98) — Adjusted Net Income $ 28,984 $ 20,091 Adjusted Net Income Per Share: Basic $ 0.07 $ 0.05 Diluted $ 0.06 $ 0.05 Weighted-average shares used to compute Adjusted Net Income Per Share: Basic 395,948 366,737 Diluted 461,761 404,319 Adjusted Revenue Guidance Reconciliation UNAUDITED In thousands THREE MONTHS ENDED YEAR ENDED Jun 30, 2018 Dec 31, 2018 Total net revenue $ 740,000 - 760,000 $ 3,000,000 - 3,060,000 Less: Transaction-based & bitcoin costs 385,000 - 400,000 1,605,000 - 1,635,000 Adjusted Revenue $ 355,000 - 360,000 $ 1,395,000 - 1,425,000 20
2018 Q1 Shareholder Letter — Square Page 19 Page 21