The electronic payment service Square has made its financial results public for the first time after filing its S-1 form with the US Securities And Exchange Commission.
The figures indicate that although the startup has failed to turn a profit since it was founded in 2009, its revenue figures are growing rapidly.
Full-year revenue for 2014 reached $850.2 million compared to $552.4 million in 2013 and gross profit for the first half of 2015 has increased to $164.4 million. However, across the first half of this year the company also posted a net loss of $74.4 million.
Square provides a number of services to its users including Square Register, Square Cash and Square Capital. Square Register facilitates point-of-sale transactions and ultimately aims to replace traditional credit card terminals and cash registers, while Square Cash is a person-to-person money transfer app. Square Capital has more of a business focus, providing cash advances to merchants that they can then pay back over time as a percentage of their credit card sales.
Square generates the majority of its revenue from charging its users a percentage of the credit card transaction fee. The mobile payments ecosystem is clearly gathering pace, not only in evidence by Square’s financials but also the launch of services like Apple Pay and Android Pay. According to the S-1 form, Square now has a company valuation of $6 billion.
Square was co-founded in 2009 by Jack Dorsey, who has found himself featuring heavily in the news recently. He was appointed permanent CEO of Twitter earlier this month and has already begun the process of restructuring the micro-blogging site.