By: Nick Gambino
Just as it was rumored, and honestly expected, Square has filed to go public. Square, for those who don’t know is a mobile payment company that offers several different software and hardware products.
They’re most famously known for the Square Reader which allows merchants to accept credit cards via the reader when it’s plugged into the audio jack of their mobile device. It’s an ingenious product that helps smaller businesses and transient merchants to accept credit cards as payment. That’s one out of numerous products they offer.
We’ve been expecting the company to go public for some time now but with their official application stating their intent, it’s now official.
Square has reported earnings which may be indicative of why their going public. In the first 6 months of 2015 their revenue was $560.6 million with a loss of $77.6 million. For comparison, the year before they made $371.9 million in 6 months with a loss of $79.4 million. The losses are definitely a sure reason to go public which will infuse the company with some much needed capital.
CEO of Square, Jack Dorsey, was also recently appointed as the CEO of Twitter on October 5th. Whether this was a factor in the decision to go public is unclear (kind of). Some may look at it almost as a version of jumping ship in order to captain another vessel. But Twitter is no stable ship either. They reported losses of $162 million in the first 3 months of this year.
In the filing to go public when talking about Dorsey’s recent appointment as CEO of Twitter it states, “This may at times adversely affect his ability to devote time, attention and effort to Square.”
Interesting. So the plot thickens…or remains exactly the same.
Either way being the CEO of both Square and Twitter simultaneously just doesn’t seem feasible and going public in some way seems to lighten the load. Except that you have a lot more investors to answer to…so there’s that.
Dorsey had this to say in the filing, “By making our service accessible to everyone, we can build a more fair and productive system that serves instead of rules. This is both good for Square and the right thing to do. We’re off to a strong start.”
Square’s IPO will be traded on the NYSE and is expected some time before Thanksgiving.
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ABOUT THE AUTHOR
Nick Gambino is a regular script writer and tech beat reporter for NewsWatch. He lives in Northern Virginia with his wife and daughter.