Symphony Logo

You heard it right! With a alleged whooping 1.4 Billion dollar valuation you would think this giant would at least turn a profit but apparently it doesn’t.

Symphony is a start up that is focused on targeting Bloomberg’s clientele base, while it has impressively gained over a reported 435,000 users (topping Bloomberg’s 325,000 users) it has still failed to bring in profits.

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Large Institutional Backings

Backers include Blackrock, J.P. Morgan Chase, Goldman Sachs, and several other financiers whom have injected over $460 million however it doesn’t stop their! According to a CNBC article “The latest round was oversubscribed, the CEO said. He turned down an offer of $200 million at a $2 billion valuation from a single investor because he considered the terms onerous, according to Gurle.

1.3% Market Penetration

Symphony can be called “the poor mans Bloomberg” as they charge roughly $240 for an annual subscription compared to rather pricey $24,000 that Bloomberg offers their Bloomberg Terminal so on that bases the user base of 435,000 at $240 users only makes for $104,400,000 (In a recent interview Mr Gurle claimed only $60 million in revenues) while Bloomberg’s user base of 325,000 at $24,000 a year makes for $7,800,000,000. Based on this very rough translation it would seem they have only penetrated 1.3% of Bloomberg’s market dominance.

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Words From CEO

“We should be break-even sometime in 2021.”

This push back comes in a time where IPO’s haven’t exactly been performing well despite very few names and a very public meltdown of WeWork (now WE) and an extremely inflated valuation.

“This is not a return-driven investment for them”

These might not be the words investors want to hear as if we’re honest that is exactly why investors buy shares of a company. The CEO claims that they’re also targeting smaller start ups that can’t afford expensive products like Bloomberg’s Terminal.

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