Bending Spoons Defies SaaS Slump, Soars 40% on Market Debut
▼ Summary
– Bending Spoons’ shares surged nearly 40% above its IPO price on its market debut, giving it a $25.7 billion market cap.
– The company acquires aging tech brands like AOL and Evernote and turns them profitable through cost-cutting, new features, and price hikes, with no plans to sell.
– Bending Spoons reported $601 million in Q1 revenue and $27.4 million in net income, a turnaround from a $112 million net loss on $259 million in revenue a year earlier.
– Subscriptions generated 84% of the company’s revenue last year.
– Major outside investors before the IPO included Baillie Gifford, Renaissance Partners, Cox Enterprises, and Fidelity.
While many traditional SaaS companies saw their share prices slide early this year , pressured by fears that AI-powered software could eventually render them obsolete , one firm has defied the downturn. Bending Spoons, a unique acquirer of struggling but once-dominant tech brands, posted a stunning performance in its stock market debut.
The company’s shares closed at $40.50 on Wednesday, roughly 40% above its $29 IPO price. That surge gives the Milan-based company, founded 13 years ago, a market capitalization of $25.7 billion , more than double its most recent private valuation of $11 billion. The offering itself raised $1.68 billion.
Bending Spoons has carved out a niche by buying aging but iconic digital properties, including AOL, Eventbrite, Evernote, Meetup, and Vimeo. Its playbook involves aggressive cost-cutting, introducing new features, and raising prices to return these brands to profitability. While this approach mirrors private equity tactics, the company stands apart by holding its acquisitions indefinitely with no intention of selling them.
Disclosed financials confirm the strategy is working. The company reported $601 million in revenue for the first quarter, alongside $27.4 million in net income. That marks a sharp reversal from the same period last year, when it posted a $112 million net loss on just $259 million in revenue, according to an SEC filing.
Subscriptions are the backbone of the business, accounting for 84% of total revenue last year. The company’s name, Bending Spoons, was inspired by a scene from the science-fiction film The Matrix.
Prior to the IPO, Baillie Gifford was the largest outside shareholder. Smaller stakes were held by Renaissance Partners, Cox Enterprises, Durable Capital Partners, Fidelity, and T. Rowe Price.
The listing also delivers a major payday for the company’s five co-founders: Luca Ferrari, Francesco Patarnello, Matteo Danieli, Luca Querella, and Tomasz Greber.
Bending Spoons is not alone in its focus on acquiring and revitalizing stagnant software firms , sometimes called “venture zombie” companies. Other players following a similar model include Constellation Software, Curious, Tiny, SaaS.group, Arising Ventures, and Calm Capital.
(Source: TechCrunch)
