Spotify, As Yet Unprofitable, Files For IPO
The music streaming service Spotify has filed official documents to launch its initial public offering and begin trading shares on the New York Stock Exchange.
Years of Spotify’s financial statements were posted giving the public its first full glimpse into the 10-year-old company. The filing shows increased revenue growth, but not as fast as years prior.
Kathleen Smith, who specializes in IPOs for Renaissance Capital, says, “All eyes are on profitability, which they don’t have yet. But they are seeing a positive trend in rising gross margins.”
Discounting one-time charges, Spotify’s losses have stabilized. The IPO is being closely watched because of its size and because the company is listing directly on the Exchange and not using an investment bank to broker the deal. Shares will likely begin trading in about a month.