Key TakeawaysSpotify Technology reported a first-quarter profit and better-than-expected sales as it added users.The streaming audio provider increased the number of total Monthly Active Users (MAUs), ad-supported MAUs, and premium subscribers.Spotify expects higher MAUs and premium subscribers in the current quarter. Spotify Technology (SPOT) shares skyrocketed in intraday trading Tuesday after the streaming audio provider posted a quarterly profit and strong sales on a big jump in the number of users. The ...

The audio-streaming platform is setting records as subscribers pay for premium services.Shares of audio-streaming platform Spotify Technologies (SPOT 15.04%) jumped on Tuesday after the Swedish company reported financial results for the first quarter of 2024. As of 9:40 a.m. ET, Spotify stock was up 13% and hitting new 52-week highs.Spotify's growth leads to a profitSpotify ended Q1 with 615 million monthly active users, which was slightly below analysts' expectations and management's guidance. That said, t ...

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For the quarter ended March 2024, Spotify (SPOT) reported revenue of $3.95 billion, up 21% over the same period last year. EPS came in at $1.05, compared to -$1.24 in the year-ago quarter.The reported revenue represents a surprise of +2.05% over the Zacks Consensus Estimate of $3.87 billion. With the consensus EPS estimate being $0.63, the EPS surprise was +66.67%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next ...

Financial Data and Key Metrics Changes - Total revenue grew 21% year-on-year on a constant currency basis to EUR3.6 billion, representing a 100 basis points improvement relative to Q4 [24] - Gross margin reached a Q1 record of 27.6%, surpassing guidance by 121 basis points, resulting in the first-ever EUR1 billion plus gross profit quarter [39] - Free cash flow was a positive EUR207 million in the quarter, reflecting the expected reversal of some timing benefits seen in Q4 [25] Business Line Data and Key Metrics Changes - Premium ARPU growth accelerated to 7% year-on-year on a currency neutral basis, while the advertising business saw improved currency neutral growth of 19% year-on-year, up from 17% in Q4 [24] - The Marketplace business performed well, contributing significantly to gross margin improvements [27] Market Data and Key Metrics Changes - Monthly Active Users (MAU) grew 19% year-on-year in Q1, with quarter-on-quarter net additions of 13 million aligning with 2021 and 2022 levels [38] - The company forecasts 631 million MAU for Q2, an increase of 16 million from Q1, and 245 million subscribers, an increase of 6 million over Q1 [25] Company Strategy and Development Direction - The company is focused on monetization and efficiency, with a strategic pivot towards improving profitability while maintaining user engagement [19][22] - There is an emphasis on expanding the creator ecosystem and enhancing partnerships with content providers, such as Universal Music Group [5][8] - The company plans to introduce more flexible pricing options, including a potential music-only tier and an audiobook-only tier, to cater to diverse consumer preferences [80][92] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the gross margin trajectory and the sequential momentum, indicating that recent performance is part of a real trend rather than one-off events [1] - The company acknowledged challenges from a December workforce reduction but believes it is back on track and expects continued improvement in execution throughout the year [20] - Management remains cautiously optimistic about advertising growth, although it is still a smaller part of the overall revenue mix [67] Other Important Information - The company is adjusting its marketing strategy to optimize spending and enhance user acquisition, particularly focusing on high-value users [21][74] - The new CFO, Christian Luiga, is expected to drive operational efficiency and growth, with a focus on capital allocation [95] Q&A Session Summary Question: Can you provide details on improved music profitability and key drivers? - Management highlighted that improved music profitability was driven by the growth of the Marketplace business and efficient cost management [43][60] Question: How will you approach pricing increases this year? - The company is focused on maintaining a healthy value-to-price ratio while exploring flexible pricing options for consumers [79][92] Question: What is the outlook for advertising growth? - Management remains optimistic about advertising growth, noting that it is approaching parity with subscription growth rates [87] Question: How does the new CFO's skill set benefit the company? - The new CFO is expected to enhance operational efficiency and focus on driving growth, leveraging his extensive experience [95]

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Despite its success in the online music market, the company has never posted a full-year net profit and only occasionally quarterly profits. Music and podcast streaming giant Spotify reported Tuesday an increase in the number of paying subscribers and a rare but lower-than-expected operating profit for the first quarter. The c ...

Daniel Ek, CEO of Swedish music streaming service Spotify, gestures as he makes a speech at a press conference in Tokyo on September 29, 2016.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.Here's how the company did, compared with analyst expectations:Earnings per share: 97 cents vs. 65 cents expected by LSEG analystsRevenue: $3.64 billion vs. $3.61 billion expected by ...

Spotify (SPOT) came out with quarterly earnings of $1.05 per share, beating the Zacks Consensus Estimate of $0.63 per share. This compares to loss of $1.24 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 66.67%. A quarter ago, it was expected that this music-streaming service operator would post a loss of $0.08 per share when it actually produced a loss of $0.39, delivering a surprise of -387.50%.Over the last four quarters, t ...

Will Spotify's growth tear continue?Spotify (SPOT -0.53%) reports earnings before the market opens on Tuesday and results could have a huge impact on shares. After strong momentum in 2023, Travis Hoium covers what to look for in 2024 in the video below.*Stock prices used were end-of-day prices of April 22, 2024. The video was published on April 22, 2024. ...

ToplineTaylor Swift’s new album, “The Tortured Poets Department,” became Spotify's most-streamed album in a single day Friday, breaking the same record previously held by Swift’s 2022 album, “Midnights.”The album was released Friday. (Photo by Ashok Kumar/TAS24/Getty Images for TAS Rights Management)Getty Images for TAS Rights Management Key Facts“The Tortured Poets Department” was released Friday and became Spotify’s most-streamed album in a single day by exceeding 200 million streams, Variety reported. “ ...