Report: Square Not Ready To Go Public This YearBy: Chris Crum - March 3, 2014
It’s looking like Square won’t be going public in 2014 as multiple reports indicate IPO aspirations have been put on hold.
Last week, The Information reported that the company was considering raising another round of funding that would delay an IPO.
The Wall Street Journal had reported back in November that Square was eyeing an offering for this year.
Now, Fox Business reports that “people with knowledge of Square’s finances” say it’s not ready to go public this year:
The San Francisco-based Square had been taking steps towards a public offering, meeting with Nasdaq executives as recently as the fourth quarter of 2013, according to a person familiar with the situation. Around that same time, it was reported that Square had been discussing a 2014 IPO with investment bankers.
But in recent weeks, people close to Square have indicated to Wall Street executives that a 2014 offering is unlikely because the company has run into problems with its “revenue run rate,” a key projection of future performance. It has been reported that Square is unprofitable, but that 2013 revenues exceeded $100 million.
One of Fox’s sources said Square’s revenues as a public company could not substantiate its private-market valuation.
Image via Square, Twitter