Agile VC

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Square IPO: Is Square A Good Payments Business?

Agile VC

It has grown remarkably, has favorable gross margins and customer acquisition payback, and a clear path to profitability. What are customer acquisition costs like? On a blended basis (paid + unpaid), Square’s payback period for new merchant acquisition is “four to five” quarters. Gross Margins / Net Revenue.

IPO 165
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Facebook S-1: The Most Anticipated IPO in a Decade ? AGILEVC

Agile VC

These companies report gross ad revenue but then subtract out “TAC” (Traffic Acquisition Costs) which is basically accounting-speak for the revenue share they pay to the partner sites where the ads actually appear. This is different from companies like Google and Yahoo! Ergo, Zynga spends more like $250 million on Facebook ads.

IPO 100