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Spotify, As Yet Unprofitable, Files For IPO

Jenny Kane
Music streaming apps as seen on an iPhone. The music-streaming company Spotify released documents on Wednesday detailing its plans for an initial public offering of stock.

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.   

Charles is senior reporter focusing on special projects. He has won numerous awards including an IRE award, three SPJ Public Service Awards, and a National Murrow. He was also a finalist for the Livingston Award for Young Journalists and Third Coast Director’s Choice Award.
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