4 ms·

> your core business model isn't that hot You can't just make a statement like that and play it off. Citations? I see Square devices used everywhere in retail,

by _zen 12y ago

> your core business model isn't that hot You can't just make a statement like that and play it off. Citations? I see Square devices used everywhere in retail, and no, I don't live in San Francisco or the Bay Area.

abalone 12y ago
That's not their problem. There was some scrutiny of their business model around their recent IPO postponement & acquisition rumors. Here's a citation: But Square's business yields razor-thin profit margins, if any... About four-fifths of that money is spent on fees to payment networks... other financial intermediaries and fraud costs... Square's gross margin, the portion of revenue remaining after paying processors and covering other costs like fraud, fell to 21% in 2013, from 27% in 2012, according to a copy of Square's results viewed by The Wall Street Journal. Square has been adding services that could eventually be more profitable than its main payments business. http://online.wsj.com/news/articles/SB10001424052702303825604579513882989476424 http://online.wsj.com/news/articles/SB1000142405270230382560... 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. http://www.foxbusiness.com/markets/2014/02/28/square-ipo-postponed-indefinitely/?cmpid=cmty_twitter_fb http://www.foxbusiness.com/markets/2014/02/28/square-ipo-pos...
thrownaway2424 12y ago
I do live in the Bay Area and the only place I have seen Square is at coffee shops and farmers market stands. I don't think it has that much traction and their growth is reported to be poor (or negative, I forget which). The mag stripe reader was a cute hack but when you get down to it the service is pretty expensive and you need a huge up-front investment in equipment, compared to ordinary cash registers which are dirt cheap.
- olivierlacan 12y ago
  Square is a POS system, comparing it with a cash register is ridiculous. Many POS systems sold to restaurants fly well above the thousands of dollars with shitty UIs that take hours for employees to learn (knowing the turnover in the food industry, it's a lot of wasted time).
  - natrius 12y ago
    Not anymore. Clover costs $500-$1000 and works for categories of retailers that Square doesn't, particularly table service restaurants.
    - warfangle 12y ago
      Must not have been Square that I saw a server using to swipe cards on an iPad mini, then. (edit: nope, it was Breadcrumb)

by _zen 12y ago

abalone 12y ago

That's not their problem. There was some scrutiny of their business model around their recent IPO postponement & acquisition rumors. Here's a citation: But Square's business yields razor-thin profit margins, if any... About four-fifths of that money is spent on fees to payment networks... other financial intermediaries and fraud costs... Square's gross margin, the portion of revenue remaining after paying processors and covering other costs like fraud, fell to 21% in 2013, from 27% in 2012, according to a copy of Square's results viewed by The Wall Street Journal. Square has been adding services that could eventually be more profitable than its main payments business. http://online.wsj.com/news/articles/SB10001424052702303825604579513882989476424 http://online.wsj.com/news/articles/SB1000142405270230382560... 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. http://www.foxbusiness.com/markets/2014/02/28/square-ipo-postponed-indefinitely/?cmpid=cmty_twitter_fb http://www.foxbusiness.com/markets/2014/02/28/square-ipo-pos...

thrownaway2424 12y ago

I do live in the Bay Area and the only place I have seen Square is at coffee shops and farmers market stands. I don't think it has that much traction and their growth is reported to be poor (or negative, I forget which). The mag stripe reader was a cute hack but when you get down to it the service is pretty expensive and you need a huge up-front investment in equipment, compared to ordinary cash registers which are dirt cheap.

olivierlacan 12y ago
Square is a POS system, comparing it with a cash register is ridiculous. Many POS systems sold to restaurants fly well above the thousands of dollars with shitty UIs that take hours for employees to learn (knowing the turnover in the food industry, it's a lot of wasted time).
- natrius 12y ago
  Not anymore. Clover costs $500-$1000 and works for categories of retailers that Square doesn't, particularly table service restaurants.
  - warfangle 12y ago
    Must not have been Square that I saw a server using to swipe cards on an iPad mini, then. (edit: nope, it was Breadcrumb)