As a result of this impressive growth, Spotify has seen revenue increase from €1,940 mil ($2,370 mil) in 2015 to €4,090 mil ($5,014 mil) in 2017.ĭespite growing revenues by ~110% in 2 years, the company has seen net profits dive lower and lower. Engaged listening hours per customer per month also increased, up 13% from 2016 to 25 hours. Based on 2016 revenues, Spotify had a global market share of 42%. The service had 159 million MAUs (up 29% YoY) and 71 million subscribers (up 46% YoY) as of Dec. Spotify is recognized as the largest music streaming service on the market. This would imply that Spotify is worth 23x what Pandora is worth, which seems a little exaggerated.

28, Pandora was valued at a little over $1 billion ($1.1 bil). However, on private markets, shares have traded between $90 - $123 giving a valuation of ~$23 billion.

The valuation of Spotify is far beneath latest estimates upwards of $16 billion.

The company will go public on the NYSE and trade under the ticker 'SPOT'. 28, Spotify filed to go public for up to $1 billion. There is sure to be a lot of excitement on its first trading day but lets look at how Pandora is bracing for this transition. Being the most comparable to Pandora ( P), a public listing of Spotify is going to finally allow a direct comparison of valuations for the two companies. While this is not a new process, this is the first time a company the size of Spotify is using this method. Spotify's filing is not a conventional IPO, instead they are going to go the route of a so-called direct listing. The Spotify filing will finally be the last piece of the puzzle needed for full analysis on Pandora. P seems to be in the midst of a very exciting time with the launch of 'Pandora Premium' on desktop, a revenue beat in Q4 and gearing its focus towards voice-assistants and smart speakers. This is one of, if not the, biggest competitor for Pandora ( NYSE: P) and a public filing will provide greater insight for investors.

Spotify ( SPOT) is gearing to go public this year, most likely in the first quarter of 2018.

Spotify plans to go public