Spotify is finally going public

Spotify finally files for a direct listing IPO, giving us a look into some of their big numbers.

Earlier this year, we reported that Spotify filed paperwork to go public. Now, it’s official.

Spotify is finally going public

Yesterday, the world’s largest music streaming service filed for a direct listing IPO, enabling their shares to hit the open market sooner than a conventional IPO.

According to Spotify, shares traded as high as $132.50 on private markets, which would give the company a valuation of more than $23B.

Finally some numbers

Until now, the company has been somewhat vague when disclosing their financials, but according to the filing, the company posted almost $5B in revenue last year.

As of last December, Spotify recorded 159m monthly active users and a whopping 71m paid premium subscribers, bringing in 46% more than the year prior. Their closest competitor, Apple, is far behind in the race, with 36m subscribers.

Spotify also lost a lot in 2017

As good as their 2017 was, they also recorded losses of $1.5B, mostly because of a non-recurring transaction expense with Tencent.

Turning a profit has been a sore subject with the company in the past, as most of their revenue is committed to paying licensing fees and ever-fluctuating royalty rates to music labels, publishers, and songwriters.

They have reportedly paid more than $9.7B in such royalties since their launch in 2006.

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