TO OUR SHAREHOLDERS: MAY 2, 2018 We continue to accelerate growth at scale, expanding our ecosystem for sellers and individuals. In the first quarter of 2018, total net revenue was $669 million, up 45% year over year, and Adjusted Revenue was $307 million, up 51% year over year. This is an increase from the fourth quarter of 2017, when total net revenue and Adjusted Revenue grew 36% and 47%, respectively, year over year. Gross Payment Volume (GPV) was $17.8 billion, up 31% year over year. Net loss in the first quarter was $24 million, which is an increase of $9 million from a net loss of $15 million in the first quarter of 2017. Adjusted EBITDA was $36 million in the first quarter of 2018, compared to $27 million in the first quarter of 2017. We achieved an Adjusted EBITDA margin of 12%, which reflects our reinvestment in the business to drive long-term growth. Together with Weebly, we will provide sellers with one cohesive solution to start or grow an omnichannel business. Omnichannel commerce—enabling sellers to engage with buyers wherever they are—is our top focus area in 2018. Square started with in-person commerce: Our integrated hardware, point-of-sale software, and managed payments have enabled sellers to begin accepting payments in just minutes. Today, it is important that sellers can reach buyers as they move between channels (in person, online, in apps): On average, omnichannel 1 shoppers spend 3.5 times more than single-channel shoppers. We are building tools that enable sellers to manage their entire business with one integrated solution. Weebly online store In April, we entered into an agreement to acquire Weebly, a San Francisco- based technology company that provides customers with tools to easily build a professional website or online store. We will combine Weebly’s web ON THE COVER: presence tools with Square’s in-person and online offerings to create one Maryam Henderson-Uloho is the founder of cohesive solution for sellers of all types, including restaurants, retailers, and SisterHearts, a thrift store, housing facility, and bridge for ex-offenders to transition service providers. An integrated suite of services will make critical business back into society. SisterHearts has been tasks like engaging with customers, managing orders, growing sales, and on Square for four years and uses Square Register and Square Marketing to run the making informed business decisions easier than ever for sellers. business. 3