UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) November 6, 2019
 
Square, Inc.
(Exact name of registrant as specified in its charter)

					
Delaware	 	001-37622	 	80-0429876	
(State or other jurisdiction
of incorporation)	 	(Commission
File Number)	 	(IRS Employer
Identification No.)	
1455 Market Street, Suite 600
San Francisco, CA 94103
(Address of principal executive offices, including zip code)
(415) 375-3176
(Registrant’s telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 	☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)	

 	☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)	

 	☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))	

 	☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))	
Securities registered pursuant to Section 12(b) of the Act:
					
Title of each class	 	Trading
Symbol(s)	 	Name of each exchange
on which registered	
Class A Common Stock, $0.0000001 par value per share	 	SQ	 	New York Stock Exchange	
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company  ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

Item 7.01.	Regulation FD Disclosure.	
Square, Inc. (the “Company”) recently completed the sale (the “Sale”) of its Caviar business to a subsidiary of DoorDash, Inc. In connection with the completion of the Sale, the Company is disclosing selected unaudited quarterly condensed statements of operations data for the Caviar business for the seven fiscal quarters from the quarterly period ended March 31, 2018 through the quarterly period ended September 30, 2019, which financial information is attached as Exhibit 99.1 hereto and is incorporated herein by reference.

Item 9.01	Financial Statements and Exhibits.	
(d) Exhibits
					
Exhibit
No. 	 	 	Description	
 	 	 	 	 	
 	99.1	 	 	Caviar business unaudited quarterly condensed statements of operations from the quarterly period ended March 31, 2018 through the quarterly period ended September 30, 2019.	
 	 	 	 	 	
 	104	 	 	Cover Page Interactive Data File, formatted in inline XBRL.	

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
							
	 		 	SQUARE, INC.	
 	 	 	 	 	 	 	
Date: November 6, 2019	 		 	By:	 	/s/ Sivan Whiteley	
	 		 		 	Sivan Whiteley
General Counsel and Corporate Secretary	

Exhibit 99.1
SQUARE, INC.
ADDITIONAL INFORMATION
CAVIAR UNAUDITED QUARTERLY CONDENSED STATEMENTS OF OPERATIONS
(In thousands)
On October 31, 2019, Square, Inc. (“Square”) completed the sale of its food ordering business, Caviar (“Caviar”), to DoorDash, Inc. (“DoorDash”) for an aggregate purchase price of $410 million in the form of cash and DoorDash preferred stock.
The following tables set forth selected Caviar unaudited quarterly condensed statements of operations data for the last seven quarters. The information for each of these quarters has been derived from Square’s historical consolidated financial statements included in Square’s Quarterly Reports on Form 10-Q and, in the opinion of management, includes all adjustments, which consist only of normal recurring adjustments, necessary for the fair presentation of the results of operations for these periods. This data should be read in conjunction with Square’s Quarterly Reports on Form 10-Q. These quarterly operating results are not necessarily indicative of the results that Caviar may achieve in future periods.

 	  	March 31,
2018	 	 	June 30,
2018	 	 	September 30,
2018	 	 	December 31,
2018	 	 	March 31,
2019	 	 	June 30,
2019	 	 	September 30,
2019	 	
Revenue:	  				 				 				 				 				 				 				
								
Subscription and services-based revenue	  	$	27,469	 	 	$	36,927	 	 	$	39,583	 	 	$	44,283	 	 	$	46,530	 	 	$	43,390	 	 	$	40,948	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total net revenue	  	 	27,469	 	 	 	36,927	 	 	 	39,583	 	 	 	44,283	 	 	 	46,530	 	 	 	43,390	 	 	 	40,948	 	
Cost of revenue:	  				 				 				 				 				 				 				
Subscription and services-based costs	  	 	21,223	 	 	 	27,569	 	 	 	29,820	 	 	 	33,549	 	 	 	35,061	 	 	 	30,063	 	 	 	28,275	 	
Amortization of acquired technology	  	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	—  	 	 	 	29	 	 	 	31	 	 	 	30	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total cost of revenue	  	 	21,223	 	 	 	27,569	 	 	 	29,820	 	 	 	33,549	 	 	 	35,090	 	 	 	30,094	 	 	 	28,305	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Gross profit	  	 	6,246	 	 	 	9,358	 	 	 	9,763	 	 	 	10,734	 	 	 	11,440	 	 	 	13,296	 	 	 	12,643	 	
Operating expenses:	  				 				 				 				 				 				 				
Product development	  	 	3,095	 	 	 	2,759	 	 	 	3,709	 	 	 	4,100	 	 	 	4,711	 	 	 	5,413	 	 	 	5,591	 	
Sales and marketing	  	 	4,165	 	 	 	3,883	 	 	 	3,428	 	 	 	4,533	 	 	 	5,229	 	 	 	5,593	 	 	 	6,205	 	
General and administrative	  	 	6,338	 	 	 	3,983	 	 	 	7,540	 	 	 	8,976	 	 	 	8,108	 	 	 	8,908	 	 	 	8,949	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Total operating expenses	  	 	13,598	 	 	 	10,625	 	 	 	14,677	 	 	 	17,609	 	 	 	18,048	 	 	 	19,914	 	 	 	20,745	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Operating profit/(loss)	  	 	(7,352	) 	 	 	(1,267	) 	 	 	(4,914	) 	 	 	(6,875	) 	 	 	(6,608	) 	 	 	(6,618	) 	 	 	(8,102	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Loss before income tax	  	$	(7,352	) 	 	$	(1,267	) 	 	$	(4,914	) 	 	$	(6,875	) 	 	$	(6,608	) 	 	$	(6,618	) 	 	$	(8,102	) 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Reconciliation of loss before income tax to Adjusted EBITDA	  				 				 				 				 				 				 				
Share-based compensation expense	  	$	1,734	 	 	$	1,837	 	 	$	2,254	 	 	$	2,293	 	 	$	2,592	 	 	$	3,483	 	 	$	3,729	 	
Depreciation and amortization	  	 	387	 	 	 	539	 	 	 	547	 	 	 	659	 	 	 	657	 	 	 	644	 	 	 	842	 	
Other (income) expense, net	  	 	152	 	 	 	(83	) 	 	 	(50	) 	 	 	96	 	 	 	18	 	 	 	336	 	 	 	104	 	
	  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	
Adjusted EBITDA	  	$	(5,079	) 	 	$	1,026	 	 	$	(2,163	) 	 	$	(3,827	) 	 	$	(3,341	) 	 	$	(2,155	) 	 	$	(3,427	)