Bending Spoons Shares Jump 40% in Strong Stock Market Debut Despite SaaS Slowdown

Earlier this year, traditional SaaS companies came under pressure as investors worried that AI-powered software could eventually replace many established software businesses. Despite those concerns, Bending Spoons—a company known for acquiring established yet struggling technology brands and reviving them—made an impressive debut in the public markets.

The stock finished trading on Wednesday at $40.50, nearly 40% above its initial public offering price of $29 per share. At the closing price, the Milan-based company, founded 13 years ago, reached a market capitalisation of approximately $25.7 billion, more than twice the $11 billion valuation it achieved during its last private funding round. The IPO raised roughly $1.68 billion for the company.

Bending Spoons has expanded rapidly by purchasing once-popular but ageing technology brands, including AOL, Eventbrite, Evernote, Meetup, and Vimeo. After acquiring these businesses, the company has focused on restoring profitability by reducing operating costs, introducing new features, and adjusting subscription pricing. Although its operating model resembles that of private equity firms, Bending Spoons has consistently maintained that it has no intention of selling the businesses it acquires.

The company’s financial disclosures indicate that this strategy has produced positive results across its expanding portfolio. During the first quarter, Bending Spoons reported revenue of $601 million and net income of $27.4 million. That represents a dramatic improvement from the same period a year earlier, when the company recorded a net loss of $112 million on revenue of $259 million, according to documents filed with the U.S. Securities and Exchange Commission.

The company’s name, Bending Spoons, is inspired by a memorable scene from the science-fiction film The Matrix. Subscription services continue to drive most of its business, accounting for 84% of total revenue during the previous year.

Before the public offering, Baillie Gifford was the company’s largest external shareholder. Other notable investors included Renaissance Partners, Cox Enterprises, Durable Capital Partners, Fidelity, and T. Rowe Price, each holding smaller ownership stakes.

The IPO also marks a significant financial milestone for the company’s five co-founders: Luca Ferrari, Francesco Patarnello, Matteo Danieli, Luca Querella, and Tomasz Greber, all of whom stand to benefit from the successful listing.

Bending Spoons is not alone in pursuing a strategy centred on acquiring, improving, and retaining mature software companies that have experienced stalled growth—often described as “venture zombies.” Other firms following a similar long-term acquisition model include Constellation Software, Curious, Tiny, saas.group, Arising Ventures, and Calm Capital.