Just as one Jack Dorsey's companies (Twitter) gets ready to go public, the WSJ reports his other big success, mobile payments upstart Square, is talking with banks (including Goldman and Morgan Stanley) about a 2014 IPO. The deal's precise timing is said to be up in the air.
Square, whose mobile card readers and iPad register app are beloved by many small businesses, raised funding last year at a $3.25B valuation. Sources tell the WSJ the company expects to generate $550M in 2013 sales on the back of $20B in processed transactions. Net revenue, which backs out payments to credit-card companies, is expected to be in a range of $110M-$165M.
An internal projection pegs 2014 sales at $1B. The company is currently unprofitable; Dorsey reportedly has discussed a plan for turning a profit in 2015. Square has been fending off a long list of competitors that includes PayPal, Groupon, Intuit, and VeriFone,