Cash Investment Management
With a subscription revenue model helping to enhance its cash flow forecasting, Spotify is able to manage a diversified investment portfolio through its treasury team and external asset management. Niklas Muhrbeck, Head of Financial Market Activities at Spotify’s Treasury spoke in a recent TMI and J.P. Morgan Asset Management webinar about his approach to investment management in a low interest rate environment.
Spotify, the global music streaming service, has been on a rapid growth journey since being founded in 2006 by Daniel Ek and Martin Lorentzon. Just 15 years later, it has 356 million monthly active users and 158 million subscribers. There are close to 80 million tracks on the platform and it is available in 178 markets globally.
Looking at the company’s financials, as of 31 December 2020 it had close to €8bn in revenue, while on the balance sheet it had €2.4bn in cash equivalents and €650m in short-term investments, just over €3bn in total. Spotify is incorporated in Luxembourg, which is its listed entity on the New York Stock Exchange. The company also has a subsidiary in Stockholm, Sweden, where it has its headquarters, and a subsidiary in the US.