Inside Spotify's IPO: the valuation symphony every startup should listen to 🎵
Priceless resource for tech startups & unicorns trotting the IPO path 🔔
👋 Hey, Linas here! Welcome to a special issue of my daily newsletter. Each day I focus on 3 stories that are making a difference in the financial technology space. Coupled with things worth watching & most important money movements, it’s the only newsletter you need for all things when Finance meets Tech. If you’re reading this for the first time, it’s a brilliant opportunity to join a community of 210k+ FinTech leaders:
Initial public offerings are back. We are back.
After a two-year absence of new listings, shares of the grocery delivery company Instacart CART 0.00%↑ yesterday closed their first day of trading on Nasdaq rising up 12%.
This is the first notable venture-backed tech company to hit the US public markets since December 2021, and it’s definitely an encouraging sign for Tech IPOs.
Stripe, SpaceX, and Klarna are some of the most anticipated IPOs of the last 5 years. Now might be approaching the time when they can finally shine. But it has to be done right.
This is where Spotify SPOT 0.00%↑ comes into play.
In the grand amphitheater of stock market listings, Spotify's IPO performance struck a resounding chord that echoed through Wall Street's halls.
It stands out not only as a testament to the company's sound financial approach but also as an exemplar for future unicorns trotting the IPO path.
Why Spotify's IPO hits the right note 🎶 While the IPO terrain is often riddled with pitfalls of valuation discrepancies, Spotify managed to waltz through the maze with precision. Instead of following the oft-treaded route, they unveiled an unorthodox direct listing structure, eschewing the traditional method. This strategy cemented their reputation as trailblazers, showcasing an IPO model that neither undervalued nor overvalued their stock.
P.S. you might wonder what Spotify has to do with FinTech? Well, reread this:
Lessons FinTechs can learn from Spotify going into audiobooks 🧠
So if you're an investor, entrepreneur, or finance enthusiast, you'd surely appreciate this tool I've recently come across. It offers a thorough analysis of the numbers and nuances shaping Spotify's trajectory (which you can use as well!).
This tool is invaluable for those who are looking to:
Convert R&D expenses from operating to capital expenses
Calculate adjustment to operating income
Calculate the tax effect of R&D expensing
Calculate the amortization of the asset for the current year
Estimate the current cost of capital
Compare performance to industry averages
& More!
On top of that, it also includes a breakdown of Spotify's financial landscape via 3 vivid charts, spotlighting growth trajectories, revenue compositions, and content-related costs.
So when it comes to IPOs, Spotify stands as an anthem of innovation and insight.
Whether you're aiming to gain investment acumen, entrepreneurial insights, or simply understand the mechanics behind a successful listing, this tool promises a deep dive into the numbers that make Spotify sing.
Dive in, and make sure that your future IPO is in tune as well👇🏼