Spotify Clocks 18% Q4 Revenue Growth Backed By Premium Subscribers; Does Not Plan To Reshape Podcast Business

  • Spotify Technology SA SPOT reported fourth-quarter FY22 revenue growth of 18% year-on-year to €3.17 billion. Premium Revenue grew 18% Y/Y to €2.7 billion, helped by subscriber additions.
  • The Q4 revenue of $3.23 billion missed the consensus of $3.44 billion.
  • Total MAUs (Monthly Active Users) rose 20% Y/Y to 489 million, led by the Rest of the World and Europe. Premium Subscribers grew 14% Y/Y to 205 million.
  • Within Premium, the average revenue per user (ARPU) was up 3% Y/Y at €4.55. Ad-Supported revenue rose 14% to €449 million.
  • Margins: The gross margin contracted by 118 bps to 25.3%, reflecting new podcast content and product investments.
  • Premium gross margin decreased by 56 bps to 28.6%. Ad-Supported gross margin declined by 554 bps to 5.1%.
  • Operating income loss was €(231) million versus €(7) million a year ago.
  • Loss per share of €(1.40) missed the consensus loss of €(1.27).
  • Spotify held €3.4 billion in cash and equivalents and used €73 million in free cash flow.
  • Outlook: Spotify sees Q1 revenue of $3.1 billion - $3.164 billion, below the consensus of $3.330 billion.
  • Spotify expects a gross margin of 24.9%.
  • It anticipates MAUs of 500 million, Total Premium Subscribers of 207 million, and an operating loss of €(194) million.
  • Spotify CEO says company has no plan to reshape podcast business; says it now has over 100 million music tracks, more than 5 million podcasts.
  • Price action: SPOT shares traded higher by 10.20% at $110.20 premarket on the last check Tuesday.
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