Spotify reported strong first-quarter earnings on Tuesday, exceeding analyst expectations on both revenue and earnings per share. The streaming giant also beat guidance on quarterly gross margin and issued optimistic guidance for the upcoming quarter, including a 28.1% gross margin driven by cost improvements.
Spotify’s first quarter results surpassed expectations, marking a significant milestone for the streaming giant. Revenue soared by 20% to 3.6 billion euros ($3.9 billion), while gross profit surged by 31% to 1 billion euros ($1.08 billion). This surge in revenue was driven by growth in both premium subscribers and ad-supported revenue. Notably, Spotify’s profitability returned, with operating income reaching 168 million euros ($180 million) in the quarter, marking a substantial improvement from the 156 million euro loss in the same quarter last year. This strong financial performance puts Spotify on track to achieve its 2024 growth target.
S&P 500 futures are edging closer to yesterday’s highs in pre-market trading, with a gain of 20 points or 0.4%. This upward momentum is fueled by positive earnings reports, particularly from GM, whose shares have surged 6% after exceeding expectations and raising guidance on the back of strong truck sales. Spotify’s shares have also witnessed an 8% increase due to impressive earnings. However, UPS, Pepsi, JetBlue, Nucor, and Cleveland-Cliffs have reported earnings misses or declines in demand, resulting in lower share prices.
Kygo, one of the world’s most popular DJs and record producers, is coming to the UK in December as part of his massive world tour. Tickets for his two UK shows go on general sale on Friday, April 26, 2024, at 10am, but there are a number of ways to get presale tickets before then.
Taylor Swift penned a heartwarming note to fans who purchased the vinyl version of her latest album, “The Tortured Poets Department,” on Record Store Day. In the note, Swift expressed her gratitude for their support and shared her hopes that the album would become a cherished keepsake for them.
Spotify Technology SA (SPOT) reported strong financial results for the first quarter of fiscal 2024, exceeding analysts’ expectations. Revenue climbed 20% year-over-year to €3.64 billion ($3.95 billion), outpacing the consensus estimate of $3.85 billion. Earnings per share (EPS) of €0.97 ($1.05) also surpassed the $0.70 consensus.
Premium revenue, which accounts for the majority of Spotify’s income, grew 20% year-over-year to €3.25 billion, driven by subscriber additions and increased average revenue per user (ARPU). Total monthly active users (MAUs) reached 615 million, marking a 19% increase annually but falling short of the original guidance by 3 million. Spotify attributed the lower-than-expected MAU growth to reduced marketing activity following record performance in 2023 and recent organizational changes, including layoffs.
Ad-supported MAUs experienced a 22% year-over-year growth to 388 million, while premium subscribers increased by 14% year-over-year to 239 million. Within the Premium tier, ARPU rose by 5% year-over-year to €4.55. Ad-supported revenue also saw an 18% increase to €389 million.
Spotify’s gross margin improved significantly, reaching 27.6%, reflecting enhanced profitability in podcast and music streaming services. Operating income reached a new quarterly high of €168 million with a margin of 4.6%. Spotify held €4.7 billion in cash and equivalents and generated €207 million in free cash flow.
For the second quarter, Spotify projects revenue of €3.8 billion (consensus estimate: $3.76 billion) and total MAUs of 631 million. SPOT shares surged over 107% in the past year, providing investors with access to the company’s growth through ETFs such as Global X Social Media ETF (SOCL) and ProShares On-Demand ETF (OND).
Meghan Markle’s return to podcasting has been postponed, with sources claiming that the relaunch of her ‘Archetypes’ podcast has been pushed back to 2025. The delay is reportedly due to conflicts with her upcoming Netflix show.
The second season of Meghan Markle’s Archetypes podcast has been pushed back to 2025, according to reports. The Duchess of Sussex was scheduled to release new episodes this year, but the project has been delayed to avoid overshadowing her upcoming TV project and lifestyle brand launch. The former actress previously released the first season of Archetypes on Spotify in 2022, featuring high-profile guests such as Serena Williams and Mariah Carey.
Taylor Swift’s latest album, ‘The Tortured Poets Department’, has broken streaming records across multiple platforms. The album garnered an impressive 300 million streams on Spotify alone on its first day, becoming the most-streamed album in a single day on the platform. Amazon Music and Apple Music also reported record-breaking numbers for the album, with Amazon Music noting it as the most-streamed album worldwide in its first week. The album’s opening track, ‘Fortnight (feat. Post Malone)’, also achieved success, becoming the most-streamed song in a single day on Spotify.
Spotify reported its first-quarter financial results, with analysts anticipating revenue of over $3.9 billion and earnings per share of 78 cents. The company has faced mixed revenue estimates in recent quarters. Analysts are focusing on potential price increases for subscribers as a catalyst for growth, along with the impact of artificial intelligence features and the success of Taylor Swift’s album on the platform.
