Square Expects to Be Profitable Next Year

Rumors of Square's demise may have been greatly exaggerated.

Square expects to turn a profit by this time next year, or at latest a couple months after that depending on which investment plan it pursues, according to internal documents obtained by Fortune.

This report comes on the heels of a negative report in The Wall Street Journal, which said that Square was burning through cash and shopping itself around.

The Fortune story confirms some of the details in the Journal report, including that Square posted a $100 million loss in 2013 (not to mention a $25 million loss last year from a deal with Starbucks). However, Fortune pegs much of the overall loss to increased investments in hiring and claims that Square has a better gross margin (about 34%) on the transactions it processes than had been previously reported. Read more...