Spotify Technology (SPOT)

[winston]

not vested

THIS AUDIO-STREAMING BUSINESS IS HITTING NEW HIGHS

Spotify Technology (SPOT) is a $45 billion streaming-audio service.

It has 130 million paid subscribers, while 156 million others regularly use a free version of the service that Spotify supports by selling ads.

Both those numbers are up about 30% year over year as more folks get on board with this trend.

Spotify is also aggressively adding exclusive podcasts to keep folks hooked, including through new partnerships with Kim Kardashian West, Joe Rogan, and DC Comics.

SPOT shares are up more than 50% over the past year and just hit a new all-time high. Streaming services aren't going away, and Spotify is only getting stronger...

Source: Daily Wealth

[behappyalways]

Spotify Pukes To 21-Month-Lows After Weak User Growth Guidance
https://www.zerohedge.com/markets/spoti ... h-guidance

[winston]

not vested

Spotify Technology S.A. – Margin expansion on the horizon

TP US$128

4Q22 revenue/PATMI in line with expectations. FY22 revenue at 98% of our FY22e forecasts, with net loss EUR140mn less than our FY22e forecasts.

Total MAUs/Premium Subscriptions both beat guidance, up 20%/14% YoY respectively. Premium ARPU was up 3% YoY.

3% gross margin beat guidance by 0.8%, primarily due to lower content spend.

Operating loss ahead of guidance by EUR69mn, expected to improve materially in FY23e.

We downgrade to ACCUMULATE with a raised DCF target price of US$128.00 (prev. US$111.00) to account for stock price performance.

We cut FY23e revenue forecasts by 8% on expected slowing of FX tailwinds, while increasing gross margin assumptions from 26.5% to 26.8%, resulting in a reduction in FY23e net profit by EUR330mn.

We maintain a WACC of 7.5% and terminal growth rate of 3%.

Source: Phillips

https://www.stocksbnb.com/reports/spoti ... e-horizon/

[winston]

not vested

Spotify shares fall 10% on Q2/Q3 revenue miss

by Senad Karaahmetovic

The company reported a loss per share of €1.55 on revenue of €3.18 billion, below the consensus for a loss per share of €0.65 on revenue of €3.21B.

Spotify had 220 million subscribers at the end of Q2 following the 27% YoY jump in MAUs to 551M, compared to the consensus for total subs of 217.1M and Q2 MAUs of 529.9M, respectively.

Source: investing.com

https://www.investing.com/news/stock-ma ... SI-3133086

[winston]

not vested

Shares of Spotify closed down 14% Tuesday after the company released second-quarter results that missed analysts’ estimates for revenue and offered weaker-than-expected guidance.

2Q23 revenue grew 11% YoY to EUR3.2bn, in line with analyst estimates.

Loss per share widened to -EUR1.55, well below analyst estimates, dragged by EUR135mn in restructuring-related costs.

On the flip side, the company saw an outperformance in user metrics, reporting 551mn MAUs and 220mn premium subscribers respectively.

Source: Phillips

[winston]

not vested

Spotify increases prices for Premium subscriptions globally, including in Singapore

by Amanda Lee

Source: Business Times

https://www.straitstimes.com/tech/spoti ... -singapore

[winston]

not vested

Spotify Technology S.A. – Record new users added

Recommendation : ACCUMULATE (Maintained); TP: US$162.00, Last Close: US$149.13

2Q23 results were within expectations.

1H23 revenue was at 45% of our FY23e forecasts, with adj. net loss (excl. one-offs) EUR25mn lower than our FY23e forecasts.

Net loss was impacted by -EUR135mn in restructuring related charges.

Record MAU growth with 36mn new users, attracting new Gen Z listeners through better podcast content.

3Q23 guidance is for slower net add of 21mn MAUs and revenue growth of 9% YoY.

Renewed focus on efficiency with headcount falling 2% QoQ, cut underperforming podcasts and price increases in >50 markets.

We widen FY23e net loss by -EUR423mn to account for higher restructuring, finance, and tax charges, while keeping FY23e revenue unchanged.

We maintain ACCUMULATE with a reduced DCF target price of US$162.00 (prev. US$165.00), with a WACC of 7.5%, and a terminal growth rate of 4%.

Source: Phillips

https://www.poems.com.sg/stock-research/SPOT/

[behappyalways]

Spotify is dominating the music streaming market
https://twitter.com/Mayhem4Markets/stat ... 9092367360

[winston]

not vested

Spotify on Tuesday (Oct 24) swung to a quarterly profit in Q3, aided by price hikes in its streaming services and growth in subscribers in all regions.

It forecast that its number of monthly listeners would reach 601 million in this quarter.

The company posted a third-quarter operating income of 32 million euros (S$46.6 million) – its first quarterly profit since 2021, helped by a higher gross margin, and lower marketing and personnel costs.

It forecast operating income of 37 million euros in the current quarter.

After spending more than a billion euros in building up its podcast business, Spotify has been keeping a tight lid on costs, laying off 6 per cent of its employees earlier this year, and in July raising prices for its premium plans.

Spotify’s gross margin rose to 26.4 per cent in the July to September period, up 166 basis points from a year earlier.

“We do expect to continue to see margin expansion into next year” CFO Vogel said.

The company’s number of monthly active users rose 26 per cent to 574 million in the third quarter, beating its own guidance and analysts’ forecast of 565.7 million.

Premium subscribers, who account for most of the company’s revenue, rose 16 per cent to 226 million, topping estimates of 223.7 million.

Revenue rose 11 per cent to 3.36 billion euros, beating estimates of 3.33 billion.

Spotify’s monthly user forecast for the fourth quarter sets the company firmly on target to reach one billion users and US$100 billion in revenue annually by 2030.

It also expects premium subscribers to reach 235 million in the last three months of the year, and revenue to reach 3.7 billion euros.

Source: Phillips

[behappyalways]

Grinch: Spotify Fires 17% Of Workforce Before Christmas
https://www.zerohedge.com/markets/grinc ... -christmas