Spotify's direct listing was successful, yielding a public market value of about $26.5 billion (above its private market value). In its direct listing, Spotify shares began trading on the New York Stock Exchange on April 3 with no road show, no raising of new capital, no bell-ringing ceremony for top management, no bragging about the massive first-day pop, and no breathlessly waiting for the stock to plunge after insiders are freed to sell their shares six months after the IPO. Instead of following the traditional approach in which an investment bank typically gets 7% of the amount raised, in exchange for taking management on a road show to entice investors, setting the price, and managing trading on the first day to yield an attention-grabbing first day pop, Spotify used a so-called direct listing. Spotify has also pioneered a new approach to taking a company public. In 2017, Spotify reported a net loss of €1,235 million, nearly six times more than it lost in 2015, and its Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was negative €324 million. According to its prospectus, between 20, revenues grew at a 45% annual rate to €4,090 million. Spotify is growing fast, losing money, and burning through a common measure of cash flow. At the end of 2017, Spotify had 157 million monthly active users - 71 million of whom were Premium customers, according to its prospectus. Spotify generates revenue from a premium service that offers subscription-fee-paying consumers access to its entire music catalog and an Ad Supported service that requires users to watch ads in exchange for limited online access to that catalog.
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