Despite a recent media report that painted a dim picture for its fortunes, the situation is actually far from bleak for Square, according to Fortune.
The company is not up for sale, despite reports of talks with Google. Square denies strongly sales talks took place.
According to sources, the mobile payments firm spoke with the search giant regarding a possible investment in Square by Google Ventures, its venture capital arm.
It has been reported that Square’s core payment processing business runs on skimpy margins. But internal emails show that gross margins on transactions are a healthy 34 per cent. However no figure for net margins is given.
The figures have emerged from interviews with Square execs, board members, sources close to the company and leaked emails.
The company will move into the black a year from now, although again it is unclear if gross or net profits are on the cards.
In 2013, the company recorded an overall loss of roughly $100 million. At the Ebitda level, the loss was $67 million, according to internal emails. However, these figures exclude Starbucks’ transactions on which it lost an additional $25 million.