Spotify Technology

summary of the Spotify Technology S.A. (SPOT) Q3 2024 Earnings Call Transcript: Financial Performance: Spotify reported strong quarterly results with a 21% year-on-year growth in total revenue reaching EUR 4 billion. Premium revenue rose 24% year-on-year on a constant-currency basis, driven by subscriber growth and ARPU acceleration from price increases. Gross margin reached a record 31.1%, surpassing guidance by 90 basis points due to favorable content costs. Operating income reached a new record of EUR 454 million, driven by gross profit strength. Record free cash flow of EUR 711 million for the quarter, supported by improved operating income and net working capital favorability. Business Progress: Added 6 million net subscribers, reaching a total of 252 million, and MAUs grew by 14 million to 640 million, both surpassing guidance. Launch of new subscription tiers and expansion into audiobooks in Europe, alongside the advancement of video content on the platform. Forward-looking plans […]

Spotify Technology (SPOT) reported Q3 diluted earnings late Tuesday of 1.45 euro ($1.54) per share, up from 0.33 euro a year earlier. Analysts polled by Capital IQ expected earnings of 1.67 euros per share. Revenue for the quarter ended Sept. 30 was 3.99 billion euros, up from 3.36 billion euros a year earlier. Analysts surveyed by Capital IQ expected 4.03 billion euros. Spotify said it had 640 million total monthly active users in Q3, up 11% year over year. The company said it expects Q4 revenue of 4.1 billion euros. Analysts polled by Capital IQ expect 4.26 billion euro. Shares of the company were up more than 7% in recent after-hours activity.

We up our target $30 to $355 on a forward TEV/EBITDA of 42.1x our 2025 EBITDA estimate at EURO1.7B, a premium to SPOT’s peer group. In our opinion, SPOT does not have any competitors in music entertainment that can match its world class platform for streaming to a growing membership of 615M (+13.5M net adds in Q1). We are confident that SPOT can grow profitably with higher unit volumes and widening margins. We like the music streaming market’s attractive growth and stability vs. the disruption seen in video streaming. SPOT is executing its strategy of realizing higher MAU and revenue growth, while also growing earnings. We keep our 2024 EPS view at EURO4.85 and 2025’s at EURO6.30; our respective revenue forecasts are EURO15.8B and EURO18.0B. We think content costs/investments are likely to remain elevated, offset by higher revenue. SPOT has room to grow in developing countries and deeper penetration of

Spotify Technology (SPOT) on Monday announced plans to raise its premium subscription prices for the second time in about 12 months. The company’s individual plan was lifted by a dollar to $11.99 after the audio streamer in July 2023 raised the price to $10.99. The new price will be reflected in US subscriber bills beginning next month, according to Spotify. The company is raising prices so that it can continue to “invest in and innovate on” product features, according to a picture of an email that will be sent to subscribers. Prices were raised to $16.99 from $14.99 for Premium Duo and to $19.99 from $16.99 for the family plan. The cost for students will remain at $5.99. In April, Spotify swung to a larger-than-expected first-quarter profit on a 20% jump in revenue that also surpassed analyst views. Premium revenue climbed 20% in the March quarter, led by 14% subscriber

By Dan Gallagher Spotify gave investors the price hike they were looking for. Its also betting big that its subscribers wont tune out. The music streamer announced its latest round of price increases for its U.S. plans on Monday. Investors have been banking on such a move all yearespecially since the companys first-quarter report in April, where CEO Daniel Ek confirmed such a move was coming. Spotifys shares jumped more than 4% Monday morning, building on a 9% gain since the last earnings report. The stock is now up 65% for the year, far exceeding the gains of any other streaming provider. Netflix is up 31% for the year, by comparison. But Spotify has long been in the uncomfortable position of competing not with other streamers, but with tech giants like Apple and Amazon that can use music streaming as a loss leader to keep users tied into their ecosystems.

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We think the current share price is an attractive entry point to buy SPOT with the shares pulling back from this week’s high. Our target price is $325 using a forward P/E of 67.0x our 2024 earnings estimate, below the five-year historic average of 78.0x. On April 23, we increased our 2024 EPS estimate to EUR4.85 from EUR2.40 and 2025’s to EUR6.30 from EUR3.95 per share. We think SPOT can grow profitably with higher unit volumes and widening margins. Our revenue forecast is EUR15.8B in 2024 and EUR17.6B in 2025 vs. EUR13.2B in 2023. Gross margins ended Q1 2024 at 27.6%, +90 bps Q/Q, with more cost discipline and one-time restructuring charges. We see 2024 gross margins at 28.0%-29.5%. We like the music streaming market’s attractive growth

Spotify Sees Q2 Total Revenue €3.8B, Total MAUs 631M, Total Premium Subscribers 245M。

CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows: We raise our target by $83 to $325 using a forward P/E of 67.0x our ’24 earnings estimate, below the five-year historic average of 78.0x. We increase our 2024 EPS estimate to €4.85 from €2.40 and 2025’s to €6.30 from €3.95. SPOT posted Q1 2024 EPS of €0.97, a €0.32 earnings beat, driven by 20% Y/Y revenue growth (revenue in line with consensus) and significantly wider gross margins (27.6% vs. 25.2%). In Q1, total subscribers were 615M (+19% Y/Y), with premium subs at 239M (+14%) and lower priced ad-supported subs at 388M (+22%). By geography, Europe was 38% of total subscribers, North America (27%), Latin America (22%), and rest of world (13%), with strong growth in family and duo plans. On a sequential basis, SPOT’s Q2 guidance

By Anne Steele Spotify stock surged after the audio-streaming company swung to a first-quarter profit. Shares jumped over 14% to trade at around $312.90, putting the stock on track for its highest close since March 2021. Spotify is turning 18 this quarter and topping it off with showing we’re a consistently profitable company, Chief Executive Daniel Ek said in an interview. After years of rapid subscriber growth and efforts to expand beyond music streaming into broader audio offerings including podcasts and audiobooks, the company has been focused on controlling costs and prioritizing profitability. Spotify reported a quarterly profit of 197 million euros, or 97 euro cents a share, versus a prior-year loss of 225 million. Analysts had expected 62 euro cents a share, according to FactSet. Monthly active users grew 19% to 615 million, 3 million shy of Spotifys guidance, amid moderated marketing activity. Some other key highlights from Spotifys

The following is a summary of the Spotify Technology S.A. (SPOT) Q1 2024 Earnings Call Transcript: Financial Performance: Spotify’s Q1 revenue increased by 21% year-on-year to EUR3.6 billion on a constant currency basis. Q1 saw a record gross margin of 27.6%, surpassing predictions by 121 basis points. Q1’s operating income reached a new record of EUR168 million, thanks to a strong gross profit and lower operational expenses. Spotify had positive free cash flow, reaching EUR207 million. Revenue for Q2 is anticipated to increase by over 22% year-on-year, potentially reaching the EUR3.8 billion mark. 20% of the revenue growth was contributed by the premium product service, due in part to price increases. Gross margin expanded significantly in this quarter, with music improvements being the significant driver alongside the growth of the marketplace business. Business Progress: Q1 experienced slower user growth due to workforce reduction impact, slower start of the year, and

Goldman Sachs analyst Eric Sheridan had a Neutral rating on Spotify Technology SA (NYSE:SPOT) with a price target of $277. Spotify reported fiscal first-quarter 2024 revenue growth of 20% year-on-year to $3.95 billion, beating the consensus of $3.85 billion. EPS of $1.05 beat the consensus of $0.70. The stock price jumped Tuesday after the print. The analyst expects Spotify to have a positive market reaction to its first-quarter 2024 earnings report (including its forward second-quarter 2024 commentary) as the company reported roughly in-line subscriber and revenue performance across its businesses with some headwinds to forward revenue and subscriber momentum in the forward forecast. In addition (and likely the more significant component of the stock reaction to this earnings report), he would focus on the positive operating momentum in both gross margins and operating margins on a mix of improved music and podcast trends with some headwind from audiobook costs operating margins benefiting from lower personnel

Spotify (SPOT) is seen delivering in-line Q1 results on Tuesday, while profitability will be a “key focus” for investors after the recent job cuts and as podcasts are near an inflection point to profitability, Macquarie Equity Research said in a note emailed Friday. Macquarie expects the company to report Q1 revenue of 3.6 billion euros ($3.82 billion) “driven by a 10% price hike in the US (28% of premium sub base) and improving ad market trends that should support growth in ad supported revenues.” “Podcast margins were near breakeven in 4Q23, and [management] commentary signaled that margins are likely to positively inflect and drive profitability through 2024,” said Macquarie analysts Tim Nollen and Ross Compton. “Podcasting has an inherent fixed cost base that implies operating leverage across the content slate. This is in contrast to music where each and every stream warrants a variable cost to the label,” they said.