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Spotify Ltd.
Business Summary
Spotify Ltd. is a privately held Internet music service that allows users to search for and play songs, albums, and customized playlists. Spotify Ltd. lets users download and log on to Spotify's software platform, enabling on-demand music streaming. The Internet music service offers a free but limited, advertisement-driven service as well as two tiers of paid subscription options for ad-free service. Spotify was founded in Stockholm in 2006 by Daniel Ek and Martin Lorentzon and has headquarters in London.
Recent News, Updates, and Analysis
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Alert (PrivCo Exclusive): SPOTIFY's Just-Closed Full-Year Financials Obtained By PrivCo Reveal Rapid Revenue Growth, But "Unsustainable" Business Model: Revenues Up 151% to $244M, Yet Cost Of Sales Up 98%, Net Losses Ballooned 60% to -$59M: "Something Must Change Soon On SPOTIFY's Business Model If Company Is To Survive"
Oct. 2012 Popular online music service Spotify's (PrivCo Private Company Ticker: SPOTFYP) financials show that the bigger the company gets, the bigger its losses. PrivCo has exclusively obtained privately-held Spotify's just-closed full year financials, and while Spotify's revenue growth is impressive, its overall financial results are alarming. … Read More »
Overview & Corporate Organization
Basic Information
| Company Tags: | VC Backed |
| Year Founded: | 2006 |
| Fiscal Year End: | 12/31 |
| 1YR Revenue Growth Rate: | View % |
| 3YR Revenue Growth Rate (CAGR): | View % |
| 1YR Employee Growth Rate: | View % |
| Address: | 30 Great Pulteney Street Golden House |
| City: | London |
| Country: | United Kingdom |
| Phone: | View |
| Fax: | View |
| Website: | www.spotify.com |
| Twitter: | http://www.twitter.com/twitter.com/Spotify |
| LinkedIn: | http://www.linkedin.com/company/spotify |
| Blog: | http://www.spotify.com/us/blog/ |
| Facebook: | http://www.facebook.com/spotify |
Corporate Organization
| Parent Companies: | Spotify Technology SA |
| Affiliate Companies: | |
| Founders: | Daniel Ek Martin Lorentzon |
Industry Information
PrivCo Industries (Sector > Industry > Sub-Industry)
| Internet > Internet Content Providers > Internet Music & Radio |
The PrivCo Industry Classification System™ (PICS) is our proprietary, modernized industry classification system, geared especially toward privately-held companies and including newer emerging sub-industries that are not reflected in other outdated industry classification systems, such as SIC and NAICS.
Competitors & Comparables
Charts, Financials, and Statistics (Table Format)
Copy & Paste Financials Into Spreadsheet or
| Balance Sheet | 2011 | 2010 | 2009 |
| Cash and Cash Equivalents | View | View | View |
| Accounts Receivable | View | View | |
| Prepaid Expenses | View | View | |
| Other Current Assets | View | View | |
| Non-Current Assets | View | View | |
| Property, Plant and Equipment | View | View | |
| Intangible Assets | View | View | |
| Other Non-Current Assets | View | View | |
| Total Assets | View | View | View |
| Accounts Payable | View | View | |
| Other Current Liabilities | View | View | |
| Total Liabilities | View | View | View |
| Stockholders Equity | View | View | View |
| Additional Paid-In Capital | View | View | |
| Retained Earnings | View | View | |
| Deferred Revenue | View | View | |
| Other Accrued Expenses | View | View | |
| Deferred Tax | View | View |
| Cash Flow Statement | 2011 | 2010 | 2009 |
| Cash Flow From Operating Activities | View | View | View |
| Cash Flow From Investing Activities | View | View | |
| Cash Flow From Financing Activities | View | View | |
| Total Cash Flow (Net Change in Cash) | View | View | |
| Cash & Cash Equivalents End of Year | View | View | |
| Cash & Cash Equivalents Beginning of Year | View | View |
| Financial Notes: | |
| * | Spotify Ltd. fiscal year end: 12/31 |
Charts, Financials, and Statistics (Graphs)
(Copy and paste into spreadsheet or export all Spotify Ltd. financials to Excel and create your own graphs.)
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Spotify Ltd. Revenues (€ MM, EUR): |
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Spotify Ltd. Total Employees: |
Spotify Ltd. Productivity (Revenue/Employee) (€, EUR): |
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Spotify Ltd. Advertisements: |
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Spotify Ltd. Paying Subscribers (Millions): |
VC/Funding Activity
| Date | Investor | Round | Investor Type | |
| Oct. 2008 | View | A | Venture Capital | |
| Oct. 2008 | View | A | Angel / Individual | |
| Oct. 2008 | View | A | Venture Capital | |
| Oct. 2008 | View | A | Venture Capital | |
| Details | Total Round A View | |||
| Aug. 2009 | View | B | Venture Capital | |
| Aug. 2009 | View | B | Angel / Individual | |
| Aug. 2009 | View | B | Venture Capital | |
| Details | Total Round B View | |||
| Feb. 2010 | View | C | Angel / Individual | |
| Feb. 2010 | View | C | Venture Capital | |
| Details | Total Round C View | |||
| Jun. 2011 | View | D | Venture Capital | |
| Jun. 2011 | View | D | Private Equity & Venture Capital | |
| Jun. 2011 | View | D | Venture Capital | |
| Details | Total Round D View | |||
| Nov. 2012 | View | Venture Financing | Corporate | |
| Nov. 2012 | View | Venture Financing | Corporate | |
| Nov. 2012 | View | Venture Financing | Corporate | |
| Details | Total Round Venture Financing1 View | |||
| Total of Funding Shown Above View | ||||
| 1 | Spotify is in the middle...Read More → |
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Detailed Business Description: Spotify Ltd.
Product
Spotify offers Internet users a way to search for and listen to music online. The company's music catalogue offers over 15 million tracks from both major and independent record labels.
Spotify offers a playlist feature for users to create and share playlists. Users may also edit others' playlists using collaborative software. Spotify may be used on computers via the company's software client or on mobile phones with the Spotify app.
Upon integration with either Facebook or Twitter, Spotify users may browse through their friends' Spotify music choices. Facebook allows for Spotify music via the Facebook inbox.
Revenue Model
Spotify's most significant revenues come from paying users, who pay $5 or $10 (or £5/10 in the UK and ??5/10 in continental Europe) per month for unlimited access to commercial-free music. Paying the lower subscription rate does not allow users to access Spotify's "premium" features, which include additional mobile capabilities and higher quality music.… Continue Reading →
Exhibits
Supplemental Resources
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