Square explores 2014 IPO - Wall Street Journal

Square explores 2014 IPO - Wall Street Journal

Mobile point-of-sale outfit Square has reputedly held discussions with Goldman Sachs and Morgan Stanley about a 2014 IPO, according to the Wall Street Journal.

Square has yet to turn a profit, but it is growing fast and expanding into new areas, including person-to-person payments, and high street point-of-sale terminals.

Citing 'people familiar with the matter', The Wall Street Journal shared internal financial projections for the firm, which forecast sales approaching $1 billion in 2014 from approximately $30 billion in transaction processing volumes.

The $1 billion figure represents a near 100% increase on 2013 sales, which are expected to reach about $550 million this year on total payment volume of around $20 billion. Roughly 70% to 80% of Square's revenue gets kicked back to credit card companies, says the WSJ, putting the company's net revenue closer to $110 million to $165 million.

Goldman Sachs was chosen to lead Twitter's IPO, in which Square founder Jack Dorsey has a 4.9% stake valued at approximately $700 million.

Comments: (0)

Trending