Bending Spoons defied a cooling software market with a strong public debut, surging nearly 40% on its first day of trading. The Milan-based company, which revitalizes established tech brands, closed at $40.50, well above its $29 IPO price. This performance bucks investor concerns about AI potentially displacing traditional SaaS businesses.

At its debut valuation of $25.7 billion, Bending Spoons raised $1.68 billion. The company employs a strategy akin to private equity, acquiring brands like AOL and Evernote, cutting costs, and enhancing features to achieve profitability. Unlike PE firms, Bending Spoons intends to hold these assets long-term, demonstrating a successful turnaround from a $112 million net loss in the prior year to a $27.4 million net income on $601 million in Q1 revenue.

The company's revenue model is heavily reliant on subscriptions, which comprised 84% of its business last year. The successful IPO provides a significant financial boost for its founders and existing investors, including Baillie Gifford. This marks a notable exception in a market previously wary of software valuations.