Gossips turned out to be true and Square announced the decision has been taken to enter the IPO. According to the records, the income of the company within the first half of 2015 made $560 mln. The net loss at the same time is $77 mln., which is better than the similar index for the year 2014, when the same numbers were $371 mln. and $79 mln. respectively.
The financial statements show Square is rising: income grows, losses reduces. All in all that seems to be a positive piece of information, while the company itself remains unprofitable, even though it shows signs to become profitable soon enough. It's planned to be listed at NYSE (New York Stock Exchange). Gross profit during the first half of the year made $164 mln., which proves again the possibilities of the company to earn money on the mobile payments segment.
At the same time, simultaneously with the news to enter IPO the company announced the decision to fold partnership with the Starbucks coffee-house network due to this direction being cost-prohibitive for the Square. Apple Pay is about to replace Square in Starbucks, starting from 2016 it plans to start giving services to the entire network in the USA.
The most important factor for the potential investors will be the company efficiency and its ability to earn from investments on a long-term horizon. Another potential risk, mentioned by experts is the fact, the company founder Jack Dorsey is also a co-founder of the Twitter micro-blog service.
The fact Dorsey takes the CEO post in both of the companies raises an alert for potential investors, who question themselves: "will he be able to act effectively in both companies at the same time".
The company plans to attract $275 mln. after placing its stocks on the exchange. Such giants as Goldman Sachs, JP Morgan and Morgan Stanley are going to coordinate the process of share placement. The company will be traded under the SQ ticker.
Such a step illustrates the start of the new age in the history of fintech industry development. Young tech companies start entering global markets, which speaks of their strengthening and so-called maturity.
