2015
10/28

Category:
Revenue

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Square Files For IPO On $560.6M In Half Year Revenue, Slim $77.6M Loss

As expected, Square has filed to go public. The financial transactions shop reported in its S-1 document that during the first half of 2015, it had revenue of $560.6 million, and a loss of $77.6 million. Those numbers compare favorably to the year-ago six-month period during which Square reported $371.9 million in revenue, and a slightly steeper $79.4 million in losses.

In short, Square grew at a decent clip while managing a minor reduction in losses. That’s a good thing. The company is going to list on the NYSE.¬†The company’s reported half-year gross profit of $164.6 million, compared to its total revenue underscores how competitive, and expensive the payments business is.

Notably, the company’s net loss fell in its second¬†quarter to $29.6 million, down from a far steeper $47.9 million in its first quarter. To be clear, however, Square has a history of losses, and it doesn’t appear to be in close reach of profitability at its current rate of growth.

The company also specifically broke out its transaction revenue from its deal with Starbucks. It said that it brought in $62.9 million in revenue from that deal in the first half of 2015, up from $56.6 million in the first half of 2014.

Square, as of the end of its second quarter in 2015, had cash and equivalents of $197.9 million, implying that it is not out of runway in any material sense. Though, if the company has strong investment plans ahead of it, an IPO would provide welcome capitalization.

The company’s gross payment volume — the total dollar amount of all card payments processed by sellers — hit $15.9 billion in the first half of 2015. That’s up from $10.4 billion in the first half of 2014 and $23.8 billion in total for 2014. The company said it had $14.8 billion in GPV for 2013 and $6.5 billion for 2012.

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