Spotify Technology (NYSE:SPOT) reported its fourth-quarter (Q4) results ahead of its guidance and announced its outlook broadly in line with expectations, according to Goldman Sachs.
The Spotify Technology Analyst: Analyst Eric Sheridan reiterated a Buy rating and a $700 price target.
The Spotify Technology Thesis: The company's revenues grew 7% year-on-year to €4.53 billion, topping consensus of €4.52 billion, driven by Premium revenues of €4.01 billion and ad-supported revenues of €518 million coming in better than Street expectations of €4.00 billion and €519 million, respectively, Sheridan said in the note.
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Spotify added 9 million premium subscribers, bringing the total to 290 million, and 38 million MAUs (monthly active users), he added.
The Stockholm-based company guided to first-quarter total revenues of €4.5 billion; total premium subscribers of 293 million; and total MAUs at 759 million, broadly in line with expectations.
"While touched upon briefly in the company's earnings deck in terms of product, we would expect the current evolution of the audio landscape driven by AI (including content creation & distribution) to be a key focus of the earnings call," he further wrote.
SPOT Price Action: Shares of Spotify Technology had risen by 17.35% to $486.82 at the time of publication on Tuesday.
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