nd cross-sell products and services with little incremental sales and marketing expense. We believe that POS 67 Table of Contents services such as Square Appointments, financial services such as Square Capital, and marketing services such as Square Customer Engagement represent opportunities to further increase en

cable quarter. Software and data product revenue. In addition to payments and POS services, we offer our sellers paid software services, including Square Appointments and Square Customer Engagement. Square Capital is our most significant data service and provides merchant cash advances (MCAs) to pre-qualified sell

ct costs reflect the ongoing costs associated with Caviar following its acquisition in August 2014 and costs associated with the introduction of our Square Appointments services following our acquisition of BookFresh in February 2014. Hardware costs for the year ended December 31, 2014. increased by $12.3 million,

ue related to services provided through software offerings, or revenue derived through the use of underlying data: • Software as a service includes Square Appointments and Square Customer Engagement. We provide the use of software for a fee which is recognized ratably over the relevant service period. • Square Cap

ces provided through software offerings, or revenue derived through the use of underlying data, as follows: • Software as a service, which includes Square Appointments and Square Customer Engagement. The Company provides the use of software for a fee which is recognized ratably over the relevant service period. F-

alizing in online appointment booking and scheduling software for small businesses. The acquisition of BookFresh accelerated the Company's plans for Square Appointments. F-23 Table of Contenh Pursuant to the merger agreement, the Company issued 2,160,620 shares of common stock (including 57,060 shares related to