Spotify Technology (SPOT)

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1Q Earnings

Spotify reported first-quarter earnings on Tuesday, notching record quarterly profit and beating estimates on the top and bottom lines, after a year of deep cost cutting and streamlining.

Spotify shares jumped more than 10% on the news.

The Swedish company also beat guidance on quarterly gross margin.

The streaming giant went into cost-cutting mode last year, laying off more than a quarter of its headcount, according to industry tracker Layoffs.

Spotify re-signed a marquee deal with controversial podcaster Joe Rogan earlier this year but otherwise significantly pared back its ambitions in the podcast business.

Spotify also issued guidance for the upcoming quarter.

The company expects net new MAUs of 16 million, for a total of 631 million monthly active users.

It also guided to an improved gross margin of 28.1%, driven by business-wide cost improvements.

Source: Phillips

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Analysts revise Shopify stock price target after earnings

by Rob Lenihan

We see consumer spend in North America remaining resilient [and] we have factored in headwinds related to [foreign exchange] from the strong U.S. dollar and some softness in European consumer spending in our Q2 outlook.

Source: The Street

https://www.thestreet.com/investing/sto ... m_content=

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Music streaming giant Spotify has been sued in a US federal court for allegedly underpaying songwriters, composers and publishers by tens of millions of dollars.

The lawsuit against Spotify USA was filed in New York on Thursday by the Mechanical Licensing Collective (MLC), a non-profit that collects and distributes royalties owed from music streaming services.

The suit alleges that Spotify on March 1, without advance notice, reclassified its paid subscription services, resulting in a nearly 50 per cent reduction in royalty payments to MLC.

The financial consequences of Spotify’s failure to meet its statutory obligations are enormous for Songwriters and Music Publishers.

If unchecked, the impact on Songwriters and Music Publishers of Spotify’s unlawful underreporting could run into the hundreds of millions of dollars.

Source: Phillips