Spotify to list stock April 3, projecting path to profit

Joshua Bennett
March 17, 2018

Earlier this month, the music streaming company said that it leased for office space in Mumbai a year ago. 72 percent of its users are under the age of 34, and almost half of them believed that Spotify is the only music service they need.

While Spotify has tried to guide investors in its listing prospectus by disclosing the value at which shares have changed hands in private transactions, the range has been wide. With no lockup period and no intermediary bankers, Spotify thinks it can go public without all the typical shenanigans.

Spotify will go public on April 3 as the world's largest streaming company lists on the New York Stock Exchange.

In its recently-published prospectus, Spotify boasted 159 million monthly active users at the end of 2017, with 71 million of those converted to premium subscriptions. "The most important day isn't our listing day".

Spotify now has over 159 million active users, including over 71 million Spotify Premium subscribers, offering a choice between a free ad-supported music service and a fully-featured, ad-free subscription option known as Spotify Premium, according to Businesstech.

Just earlier this week, Spotify made its debut in four new markets, which include Israel, Romania, South Africa and Vietnam.

Paid users stream an average of more than 80 minutes of content daily.

"Spotify has filed a Form F-1 with the SEC that provides full financial disclosure, just like we would've done with a traditional IPO", the company said.

Recognising that their biggest global rivals at the moment are tech giants Apple, Amazon and Google, they also talked up how their platform was all about the music, rather than being - in part at least - a tool to sell other services or devices.

Apple Music said there are potentially 2 billion subscribers who haven't joined a service yet.

Spotify has voiced confidence that streaming will keep up its fast-paced growth although the company has acknowledged that it has yet to turn a profit.

Spotify allows users to browse, discover, curate playlists, build their own music collection and share music with friends.

Spotify Technology SA executives outlined their vision for the music-streaming company and dug into its financials, opening to the public a presentation that typically remains behind closed doors, as the company hurtles toward an April initial public offering.

Other reports by

Discuss This Article