Dear Visitor,

Our system has found that you are using an ad-blocking browser add-on.

We just wanted to let you know that our site content is, of course, available to you absolutely free of charge.

Our ads are the only way we have to be able to bring you the latest high-quality content, which is written by professional journalists, with the help of editors, graphic designers, and our site production and I.T. staff, as well as many other talented people who work around the clock for this site.

So, we ask you to add this site to your Ad Blocker’s "white list" or to simply disable your Ad Blocker while visiting this site.

Continue on this site freely
You are here: Home / Sales & Marketing / It's 2017 and Square Is Thriving
Surprise! It's 2017 and Square Is Thriving
Surprise! It's 2017 and Square Is Thriving
By Jason Del Rey Like this on Facebook Tweet this Link thison Linkedin Link this on Google Plus
It's hard to remember now, but back in 2014, just about everyone in tech who wasn't a Square employee or investor was convinced the company was falling apart.

There was a Wall Street Journal article that disclosed large losses at Square, a defensive, ill-conceived blog post from Square rebutting 10 myths about the company, and CEO Jack Dorsey's decision in the midst of the subsequent backlash to jet to his hometown to participate in the Ferguson protests. All the while, rumors were running rampant that Square would be forced to sell.

Fast-forward to today, and surprise! Square is thriving -- as an independent and public company.

After announcing strong fourth-quarter results that beat analyst expectations, Square's stock was trading up 13 percent at around $17 a share. That's a 52 percent increase from where the stock opened on the company's first day of trading in November 2015.

How did we get here?

For one thing, Square's core payment processing business is much stronger than many people predicted.

About $50 billion of card purchases went through Square's system in 2016, and that number doesn't include its now-ended Starbucks partnership. And as that number has grown, Square has gotten better at reducing losses from things like card fraud. Square also continues to attract larger merchants to its platform, proving that its services are valuable to more than just micro-merchants.

Square's new, non-core businesses -- things like its Square Capital lending service and Instant Deposit product -- now account for 25 percent of adjusted revenue, the most-closely watched revenue metric at Square. As a whole, these businesses are important because they boast high profit margins and also help keep merchants from fleeing to other payment providers.

Speaking of profits, Square has produced positive adjusted earnings before interest, taxes, depreciation and amortization (Ebitda)-- the profitability metric many investors care most about for a fast-growing company - for three straight quarters. And the company is forecasting $100 million more in 2017.

Square is still a young company with a lot of questions.

Will its continued investment in Square Cash ever pay off in the form of a real business? Can it build a long-term profitable business?

But by now it's clear that many smart people were wrong on Square. It's a bona fide success story. And it's not going anywhere.

© 2017 Re/Code under contract with NewsEdge/Acquire Media. All rights reserved.

Image credit: Square.

Tell Us What You Think


Like Us on FacebookFollow Us on Twitter
© Copyright 2017 NewsFactor Network. All rights reserved. Member of Accuserve Ad Network.