Bending Spoons shares fall as revenue growth slows

Shares of Bending Spoons, the Italian mobile software developer, fell on Friday after preliminary second-quarter results indicated slower revenue growth and compressed profit margins.

The company, which operates a portfolio of consumer-facing apps including Splice and Playtika, reported preliminary Q2 revenue of €125 million, a 15% year-over-year increase but below analyst expectations of €135 million. Adjusted EBITDA declined to €22 million from €28 million in the same period last year, reflecting higher operational costs and intensified competition in its core markets.

Bending Spoons, which went public in December 2021 via a SPAC merger with Arcline Investment Corp., has faced investor scrutiny over its ability to sustain rapid growth amid rising marketing expenses and platform fees. The stock, which debuted at €12 per share, has traded below its IPO price for most of 2024, closing Thursday at €9.80.

Analysts at Jefferies noted that while revenue growth remains positive, the deceleration and margin pressure raise questions about the company’s near-term profitability. "The gap between revenue growth and cost inflation is widening," Jefferies said in a note, maintaining a hold rating on the stock.

Bending Spoons did not provide full quarterly results or forward guidance in the preliminary update. The company is scheduled to release its complete Q2 earnings report on July 25, which may offer further clarity on its operational trajectory and strategic priorities.

The stock was down 4.2% at €9.40 in mid-morning trading on Friday, underperforming the broader Italian equity benchmark.