Bending Spoons' Successful Market Debut
Bending Spoons, a 13-year-old Milan, Italy-based company, has defied the SaaS slump with a successful market debut, seeing its shares surge 40% on its first day of trading.
The company's shares closed at $40.50 on Wednesday, nearly 40% above its $29 IPO price, valuing it at $25.7 billion, more than double its last private valuation of $11 billion. Bending Spoons has grown rapidly by acquiring aging, but once popular, brands like AOL, Eventbrite, Evernote, Meetup, and Vimeo, then turning them profitable through aggressive cost-cutting, launching new features, and raising prices.
Financial Performance
Bending Spoons' disclosed financials show it has indeed turned its growing portfolio of assets profitable. The company reported $601 million in revenue for Q1, generating $27.4 million in net income. This is a significant turnaround from the same period last year, when the company reported a $112 million net loss on $259 million in revenue.
- The company's revenue is largely driven by subscriptions, which accounted for 84% of its business last year.
- Bending Spoons has no plans to sell the businesses it acquires, unlike private equity firms.
- The company's approach has been successful, with its market capitalization more than doubling its last private valuation.
Investor Interest
Before the offering, Baillie Gifford was Bending Spoons' largest outside shareholder, followed by smaller stakes from buyout fund Renaissance Partners, Cox Enterprises, Durable Capital Partners, Fidelity, and T. Rowe Price. The IPO also represents a significant windfall for Bending Spoons' five co-founders: Luca Ferrari, Francesco Patarnello, Matteo Danieli, Luca Querella, and Tomasz Greber.
The company's successful market debut is a testament to its unique approach to acquiring and revitalizing stagnating tech firms. As the SaaS industry continues to evolve, Bending Spoons is well-positioned to capitalize on the trend of acquiring and holding stalled software firms.