Square (SQ) Files for $275M Common Stock IPO

(Updated - October 14, 2015 4:14 PM EDT)

Square (NYSE: SQ) filed a registration with the U.S. SEC for an IPO of its Common Stock. The proposed maximum offering price is $275 million. The company plans to list on the NYSE under the symbol, "SQ."

Underwriters are Goldman, Sachs & Co., Morgan Stanley, J.P. Morgan, Barclays, Deutsche Bank Securities, Jefferies, RBC Capital Markets, and Stifel.

Financial commentary: "For the six months ended June 30, 2015, our total net revenue grew to $560.6 million, up 51% from the six months ended June 30, 2014. In 2014, our total net revenue grew to $850.2 million, up 54% from the prior year. For the six months ended June 30, 2015, our Adjusted Revenue grew to $198.8 million, up 67% from the six months ended June 30, 2014. In 2014, our Adjusted Revenue grew to $276.3 million, up 73% from the prior year. Adjusted Revenue is a non-GAAP financial measure that we define as our total net revenue less transaction costs, adjusted to eliminate the effect of activity under our payment processing agreement with Starbucks. In the third quarter of 2012, we signed an agreement to process credit and debit card payment transactions for all Starbucks-owned stores in the United States. The agreement was amended in August 2015 to eliminate the exclusivity provision in order to permit Starbucks to begin transitioning to another payment processor starting October 1, 2015. Under the amendment, Starbucks also agreed to pay increased processing rates to us for as long as they continue to process transactions with us. We anticipate that Starbucks will transition to another payment processor and will cease using our payment processing services prior to the scheduled expiration of the agreement in the third quarter of 2016, and, in any event, we do not intend to renew it when it expires."

Square is a payments processor and POS system provider.

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