Daniel Ek said Spotify underestimated the impact of laying off 1,500 people in December."It took us some time to find our footing," Ek told investors in an earnings call.The streaming giant had cut 2,300 jobs over three rounds of layoffs last year.  NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. Email address ...

Spotify’s quarterly gross profit topped $1.1 billion for the first time after it reined in marketing spending, although that meant the music streaming giant missed its forecast for monthly active users.The Swedish company has been growing its user base for years by offering promotions and investing in podcasts and audiobooks. But since last year it started to cut costs, including through layoffs and its marketing budget, to boost margins and profits.Spotify has reported a gross earning of over $1.1 billion. ...

Spotify is tuned in to upbeat earnings outcomes, marking a robust beginning to its designated “year of monetization” after a standout performance in 2023 characterized by significant revenue growth, margin expansion, and enhanced efficiency.First-quarter earnings released on Tuesday (April 23) showed significant increases across key metrics, with monthly active users (MAU) surging by 19% year-over-year to 615 million and subscribers rising by 14% to 239 million — record user growth in the streaming giant’s ...

Spotify (NYSE:SPOT) is popping dramatically higher today, mitigating concerns about discretionary consumer sentiment. The company reported its fiscal first-quarter earnings on Tuesday and exceeded both top- and bottom-line forecasts. Notably, Spotify posted record profits in Q1, delighting investors and top-level buyers of SPOT stock.Breaking down the details, Spotify reported operating income of 168 million euros ($179.8 million), up from a loss of 156 million euros in Q1 2023. Still, it’s worth pointing o ...

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 ...