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Spotify hits record quarterly profit as it enters ‘new phase’ Pioneer of music streaming kicks off more mature era for its business after years of freer spending Spotify reported net income of €197mn in the three months to the end of March, compared with a loss of €225mn in the same period a year ago © Bloomberg Spotify hits record quarterly profit as it enters ‘new phase’ on x (opens in a new window) Spotify hits record quarterly profit as it enters ‘new phase’ on facebook (opens in a new window) Spotify hits record quarterly profit as it enters ‘new phase’ on linkedin (opens in a new window) Share Save current progress 67% Anna Nicolaou in New York YESTERDAY 47 Print this page Spotify turned the largest quarterly profit in its 18-year history as chief executive Daniel Ek makes good on his promise of a “new phase” for the streaming group after decades of freer spending. Spotify reported net income of €197mn on €3.6bn in revenue in the three months to the end of March. In the same period a year ago, it lost €225mn on €3bn in revenue. But its austerity, such as pulling back on marketing spending, had an impact on user growth in the quarter. Monthly active users reached 615mn, lower than the 618mn Spotify had forecast, which it blamed on “moderated marketing activity”. “In hindsight we probably pulled back too significantly,” Ek told investors on a call, adding that he was “already correcting this”. The company added 3mn paying subscribers to reach a total of 239mn, in line with forecasts. Spotify and Netflix, the pioneers of streaming for music and television, respectively, have entered a more mature phase for their businesses. In a sign of the times, Netflix last week said it would stop reporting its subscriber numbers — a metric that has been a crucial benchmark for Wall Street in the streaming era — in favour of measuring engagement. After pressure from investors, including activist ValueAct which complained that Spotify’s expenses had “exploded”, Ek last year said the company he founded in 2006 would enter a new era. Since then, Spotify has been turning the screw on customers with price rises while cutting expenses. Recommended Inside BusinessAnna Nicolaou Streaming model for music set for a streamlining Spotify last year cut more than 2,000 employees, or roughly a quarter of its workforce, and in December Ek said he would hire a new chief financial officer “with a different mix of experiences” for this “new phase”. The company earlier this month appointed Christian Luiga as its chief financial officer. Luiga, who will be based in Sweden, joins from security and defence company Saab. Spotify’s gross profit margins in the quarter rose to 27.6 per cent, up from 25.2 per cent a year ago. Ek on Tuesday admitted that the large job cuts had taken a toll, citing them as one reason for the company’s slower user growth.

The ‘year of monetization’ is what Spotify's CEO referenced in its 1Q24 results, as it continues to push towards profitability. Consumer price rises will remain a key driver of growth as Q1 highlighted the weakest QoQ net Premium subscriber adds for two years. But how much further can price rises be sustained in a region already paying higher prices than the rest of the world? European Spotify subscribers represent c.38% of its Premium subscriber base. With a second price rise in under 12 months announced in the UK, and other countries likely to follow, will consumers increasingly trade down? How will this impact Spotify's overall performance? View our latest research here. https://lnkd.in/e3xV3TDk #spotify #streamingservices #premiumplans #consumerinsights #investor #transactiondata #entertainmentmarket #europeanconsumer

Spotify posted a record quarterly profit slightly ahead of analyst expectations on Tuesday, pushing its shares up more than 14% in premarket trading. The results reveal significant growth in user engagement, strong financial performance, and strategic product innovations. Here are some of the key insights from their latest earnings report: 🎧 User Growth and Engagement: 🔳 Monthly Active Users (MAUs): Spotify's MAUs increased by 14% YoY, reaching 626 million. This growth reflects user acquisition across all regions, with Rest of World and Europe leading the charge. 🔳 Premium Subscribers: The number of premium subscribers rose by 12% YoY to 246 million. This increase is attributed to strategic promotional campaigns and price adjustments in developed markets. 💰 Financial Performance and Revenue Growth: 🔳 Total Revenue: Spotify reported a 20% YoY increase in total revenue, reaching €3.8 billion. This growth was driven by a 21% YoY increase in Premium Revenue, highlighting successful subscriber gains and ARPU growth. 🔳 Gross Margin: Achieving a record high of 29.2%, up 510 bps YoY, Spotify's gross margin reflects significant improvements in music and podcast profitability, alongside operational efficiencies. 🎙️Product and Platform Developments: 🔳 Video and Audiobook Expansion: Spotify's video podcast catalog now exceeds 250,000 shows, and over 250,000 audiobook titles have been integrated into their Premium offering in Canada, Ireland, and New Zealand. These additions enhance user experience and content variety. 🔳 Spotify Basic Plan: A new Basic plan was launched in Australia, the UK, and the US, providing users with an ad-free music listening option, catering to different user preferences. 📈 New Advertising Innovations: 🔳 Creative Lab and Quick Audio: Spotify introduced Creative Lab, an in-house ad creative agency, and Quick Audio, a generative AI tool for advertisers. These innovations aim to create compelling brand experiences and leverage Spotify's vast user data for targeted advertising. 📉 Operational Efficiency and Cost Management: 🔳 Operating Expenses: Spotify reported a 16% YoY decline in operating expenses, driven by reduced personnel and marketing costs, as well as efficiency initiatives. What were some of your biggest takeaways from Spotify's 2024 Q2 earnings report? Check out the full report below. https://lnkd.in/eECb58YC

Spotify's latest quarter didn't just crank up the volume—it blew the speakers. The streaming titan snagged 6 million new paying subscribers in Q3, bumping Premium users to a staggering 252 million. Total monthly active users (freebies included) hit 640 million, turning the globe into one massive playlist party. Even better? Spotify's on track for something it's never pulled off before: full-year profitability. The financial charts are basically headbanging. Revenue hit $4.3 billion, a 19% boost, while net income skyrocketed from $69 million to a jaw-dropping $324 million. Operating income? A record-breaking $491 million, with gross margins flexing at 31.1%. Wall Street? Swooning. Spotify shares jumped over 8% after hours because, apparently, profitability looks good in green. CEO Daniel Ek was in fine form, practically crowning Spotify the king of audio. On the Q3 earnings call, he hinted at exciting expansions into video because why stop at dominating the audio world? The company also slashed operating expenses by 8%, thanks to layoffs and leaner marketing spend, bringing headcount down to 7,242. That extra cash flow's probably funding the brainstorming for those "exciting" announcements. Oh, and let's not forget the audio ad industry, which is absolutely rolling in it right now. Here are the big players keeping your playlists sprinkled with ads: Triton Digital John Rosso, the maestro at the helm, ensures your uninterrupted vibes get interrupted. Triton powers the ecosystem where advertisers meet audio audiences, raking it in click by click. Ad Results Media Jordan Fox, the new captain steering the ship, has turned podcast ads into a goldmine. From true crime to better sleep, they're cashing in on your listening habits. AdsWizz Alexis van de Wyer makes sure those ads you can't skip are perfectly placed, ensuring your podcasts keep both you and advertisers hooked. Spotify and its ad tech partners are cashing in big time. AdTonos Founded by Michal Marcinik he like the Elon Musk of digital audio, but with better playlists and fewer rocket explosions.

Spotify nails it again this quarter. Topline Results for Q2: Total revenue of 3.8 billion euros reflected revenue from premium subscribers growing by 21% and ad-supported revenue growing 13%.  Gross margin of 29.2% beat the company’s growth forecast due to improved music and podcast profitability, the company said. Operating income also beat guidance at 266 million euros due to lower personnel and marketing costs.  Total monthly active users (MAUs) were 626 million in the second quarter, up 14% from a year ago.  Premium subscribers totaled 246 million and ad-supported MAUs totaled 393 million, up 12% and 15% from a year ago respectively. Premium average revenue per user (ARPU) rose 10% from last year. Spotify is a top 10 holding of MUSQ ETF https://lnkd.in/eQCBDVHp

After releasing its financial results for Q2 2024, Spotify appears to be on the verge of a significant achievement: posting its first profitable year. The streaming giant reported a net income of 471 million euros in the first half of 2024, signaling the potential for the company to end the year in the black for the first time since its inception. This shift towards profitability is largely driven by the platform's premium subscribers. When Spotify launched in 2008, it experienced slow growth in paid subscriptions, taking nearly two years to reach one million premium users. However, after entering the U.S. market in 2011, the subscriber base expanded rapidly, achieving a compound annual growth rate of 61% over 14 years and reaching 236 million paying users by the end of 2023. In the first half of 2024, Spotify gained an additional 10 million subscribers, a slightly lower increase compared to previous first-half periods. As illustrated by company data and media reports, Spotify has come close to annual profitability several times, most notably in 2021. This near-miss can be attributed to the COVID-19 pandemic, which drove more people to digital platforms as they spent more time at home due to social distancing measures. In Spotify's Q2 2024 earnings call, CEO Daniel Ek highlighted the company's enhanced monetization efforts, which were bolstered by price increases across major markets and the expansion of subscription options to cater to diverse content preferences. However, another factor contributing to profitability was the wave of layoffs across the tech industry in 2022 and 2023. Over the past year, Spotify cut more than 2,300 jobs, reducing its workforce from approximately 10,000 in early 2023 to around 7,400 by the end of June 2024. The company cited "lower personnel and related costs" as a key contributor to its income in its Q2 shareholder report.

Spotify Sees a Surge in Subscribers and Profits with a 14% Increase in Paid Channels Spotify Technology SA shares experienced a significant boost, marking the largest one-day jump in nearly two years, following the announcement of a first-quarter profit. This surge is fueled by a considerable increase in the number of paid subscribers, which grew by 14%...

Spotify held its quarterly earnings call yesterday, shortly after publishing its Q2 financials. One of the first topics that came up was the company missing its guidance to analysis on monthly active users (MAUs) growth. While its 626 million MAUs were up 14% year-on-year, they were 5m less than Spotify had predicted. CEO Daniel Ek outlined two things Spotify is doing to juice the growth of its free tier. “First, we’re intensifying our efforts to improve the impact of our marketing, and we believe there are a number of levers to pull over the upcoming quarters,” he told analysts. “Second, we are prioritising enhancements in our free product pipeline that, based on existing performance in certain markets, should boost engagement and retention, especially in our developing markets. Ek added that “while I am disappointed with our MAU miss, I see the reversal as more of a when rather than an if… overall, we’re seeing healthy MAU engagement trends year-over-year, so the users we are now acquiring we’re also retaining, which is a great leading indicator for value and future monetisations.” Read The Full Story Here: https://lnkd.in/dy43-E9v #Spotify #Streaming #MusicIndustry #musically #musicnews #readmore

# Only put off until tomorrow what you are willing to die having left undone ## Don't Miss Out on the 98% Surge - Invest in Spotify Today! 💪📈 Spotify Technology S.A. \(SPOT\) has been on a remarkable journey, with its stock soaring an impressive 98.2% year to date. This outstanding performance has far outpaced the industry's 33.5% rally, making Spotify a standout investment opportunity. The stock closed at $372.5 in the last trading session, nearing its 52-week high of $389.23. Additionally, SPOT is currently trading above its 50-day moving average, showcasing its strength in the market. Investing in Spotify allows you to capitalize on the incredible growth potential of the music streaming industry. With an increasing number of users, expansion into new global markets, and innovative offerings, Spotify is well-positioned for continued success. By joining this upward trend, you can participate in the company's ongoing growth and potentially reap significant returns. Don't let the Fear of Missing Out hold you back from seizing this opportunity. Take action today and consider allocating a portion of your Health Savings Account \(HSA\) to invest in Spotify. By doing so, you not only enhance the growth of your HSA funds but also contribute to the future of a company that revolutionizes the way we enjoy music. #hsa #investing #healthcare #health #family #wellness 🎵📈