The earnings call conveyed strong growth in user numbers, revenue, and profitability, with a focus on future expansion and innovation. Despite challenges in advertising growth and foreign exchange impacts, the sentiment was largely positive, with Spotify achieving record metrics and setting optimistic forecasts.

Company Guidance

During Spotify's Q3 2024 earnings call, the company provided optimistic guidance, demonstrating significant progress across various metrics. Spotify added 14 million Monthly Active Users (MAU) to reach 640 million and gained 6 million net subscribers, totaling 252 million. The company reported a 21% year-on-year increase in total revenue, reaching EUR 4 billion, with premium revenue growing by 24% due to subscriber growth and ARPU acceleration. Advertising revenue saw a 7% currency-neutral growth despite market volatility. The company achieved a record gross margin of 31.1%, surpassing guidance by 90 basis points, and reported a record operating income of EUR 454 million, impacted by EUR 54 million in social charges. Free cash flow was also a record EUR 711 million. Looking ahead to Q4, Spotify forecasts 665 million MAU and 260 million subscribers, with revenue expected at EUR 4.1 billion. The guidance anticipates a gross margin of 31.8% and operating income of EUR 481 million, projecting a full year of positive operating income amounting to EUR 1.4 billion.

Record User Growth

MAU grew by 14 million to 640 million and net subscribers increased by 6 million to 252 million, outperforming guidance by 1 million.

Revenue Growth

Total revenue grew 21% year-on-year on a constant currency basis to EUR 4 billion, with premium revenue rising 24% year-on-year.

Gross Margin Improvement

Gross margin achieved a record 31.1%, surpassing guidance by 90 basis points, due to content cost favorability.

Operating Income and Cash Flow

Operating income reached EUR 454 million and free cash flow achieved a record EUR 711 million.

Positive Outlook

Forecast for Q4 includes 665 million MAU, 260 million subscribers, and EUR 4.1 billion in total revenue.

Audiobooks Expansion

Strong adoption in the U.S. with more than 5 additional hours of consumption per user, and the library of titles has more than doubled.

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Spotify Technology SA (GB:0SPT) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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GB:0SPT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jul 26, 2018	2018 (Q2)	- / -2.20	-1.123	-95.90% (-1.08)	―	―
Nov 01, 2018	2018 (Q3)	- / 0.23	-1.774	112.97% (+2.00)	―	―
Feb 06, 2019	2018 (Q4)	- / 2.32	-3.87	159.95% (+6.19)	―	―
Apr 29, 2019	2019 (Q1)	- / -0.79	-1.01	21.78% (+0.22)	―	―
Jul 31, 2019	2019 (Q2)	- / -0.42	-2.2	80.91% (+1.78)	―	―
Oct 28, 2019	2019 (Q3)	- / 1.34	0.23	482.61% (+1.11)	―	―
Feb 05, 2020	2019 (Q4)	- / -1.14	2.32	-149.14% (-3.46)	―	―
Apr 29, 2020	2020 (Q1)	- / 0.00	-0.79	―	―	―
Jul 29, 2020	2020 (Q2)	- / -1.91	-0.42	-354.76% (-1.49)	―	―
Oct 29, 2020	2020 (Q3)	- / -0.58	1.34	-143.28% (-1.92)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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GB:0SPT Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 12, 2024	€380.25	€390.05	+2.58%
Jul 23, 2024	€268.15	€303.80	+13.29%
Apr 23, 2024	€254.60	€290.50	+14.10%
Feb 06, 2024	€206.00	€224.00	+8.74%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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