The company continues to post growth rates well in the double digits. Spotify's (SPOT -1.12%) recent second-quarter earnings release was music to the ears of many investors. The streaming service convincingly beat the average bottom-line estimate while delivering robust growth where it counted. In the wake of that release, several analysts raised their price targets on the high-profile music streamer. One even went so far as to upgrade his recommendation on its stock. A recommendation change and big price t ...

Shares of Spotify Technology SA SPOT climbed in early trading on Wednesday, after the company reported its second-quarter results. The results came amid an exciting earnings season. Here are some key analyst takeaways. Bank of America analyst Jessica Reif Ehrlich reiterated a Buy rating, while raising the price target from $380 to $430. Goldman Sachs analyst Eric Sheridan upgraded the rating from Neutral to Buy, while lifting the price target from $320 to $425. JPMorgan analyst Doug Anmuth reiterated an Ove ...

As indicated in my initiation report, Spotify has grown its ad-supported streaming service. Ad-supported service could both increase the number of Spotify's subscribers, and help the company generate some ads revenue. With the Ad-supported service, Spotify can attract more subscribers who are sensitive to the monthly subscription fees. The chart below shows the average monthly revenue per premium subscriber. Spotify has been improving its monetization since Q2 FY23. As pointed out in my previous article, in ...

Spotify Technology (SPOT) posted second-quarter results before the bell Tuesday that delivered record profit and offered fresh guidance. Spotify shares jumped nearly 12% in recent trading Tuesday. Do you have a news tip for Investopedia reporters? Please email us at Spotify posted record quarterly operating income and earnings per share that surpassed analysts' expectations. The streaming-audio company said it expects third-quarter revenue in line with current analyst expectations. Spotify Premium prices ar ...

Financial Data and Key Metrics Changes - The company added 7 million net new subscribers in the quarter, exceeding forecasts by 1 million [8] - Total revenue grew 21% year-on-year on a constant currency basis to €3.8 billion [8] - Operating income reached a record €266 million, supported by gross profit strength and lower operating expenses [20] - Free cash flow was a record €490 million in the quarter, driven by an improving operating income profile [20] - Gross margin came in at a Q2 record of 29.2%, surpassing guidance by 110 basis points [103] Business Line Data and Key Metrics Changes - Premium ARPU growth accelerated by 300 basis points to 10% year-on-year on a currency-neutral basis [8] - The advertising business saw currency-neutral growth of 12% year-on-year, although performance was slower relative to Q1 [8] - The company is experiencing a slight moderation in ARPU growth for Q3, expected to be in the 100 to 200 basis point range [9] Market Data and Key Metrics Changes - The company is focusing on developing markets for user acquisition, which presents challenges in engagement and conversion to paid subscriptions [6] - In developed markets, the company sees strong penetration and broad awareness, allowing for strong revenue growth even as these markets mature [45] Company Strategy and Development Direction - The company aims to transform its business with a focus on monetization and has multiple growth options available [7] - There is a strategic emphasis on improving marketing effectiveness and enhancing the free product pipeline to boost engagement and retention [101] - The company is exploring new subscription plans and diversifying its offerings to attract different consumer segments [111] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in overcoming the current MAU growth challenges, viewing it as a matter of "when" rather than "if" [50] - The company is optimistic about future growth opportunities, particularly in developing markets and through enhanced product offerings [64] - Management highlighted the importance of creating win-win scenarios for both creators and consumers to drive long-term value [80] Other Important Information - The company is monitoring the impact of recent price increases on subscriber retention, with early signs indicating better-than-expected cancellation rates [87] - The company is committed to maintaining healthy relationships with the music industry, focusing on mutual growth rather than a zero-sum game [32] Q&A Session All Questions and Answers Question: What actions are being taken to drive more MAU growth? - The company is optimizing marketing in developing markets and enhancing product offerings to improve engagement and retention [117] Question: How has podcast engagement changed on Spotify? - Engagement on podcasts remains healthy, with video podcasts showing even higher engagement levels compared to audio-only content [120] Question: Can you provide an update on your relationship with the labels? - The company maintains a win-win perspective with the music industry, focusing on increasing payouts and fostering healthy growth [59]

Spotify shattered Q2 profit expectations. Key Facts Tuesday's rally came after the company delivered bumper quarterly results. With more than $500 million in net income booked in Spotify's first two quarters and a further $630 million projected over the second half of the year, Wall Street now expects the streamer to easily tally its first-ever profitable year, turning around from 2022's $467 million loss and 2023's $572 million loss. 330%. That's about how much Spotify stock is up since the end of 2022. It ...

Spotify's operating profit reached 266 million euros ($289 million) in the second quarter, compared to a loss of 247 million euros in the same three-month period last year. Spotify increased its subscription prices in June, the second increase in a year. 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: Spotify raised prices in June, its second increase in a year. Swedish music ...

About this content About William Farrington William kickstarted his career as a researcher and reporter for a global legal publication, covering everything from public law to M&A. Before moving to Proactive Investors, he worked as a reporter for a major fintech company with a focus on cryptocurrency and blockchain technology. Harking from Queensland, Australia, William obtained first-class honours in journalism and media from Birkbeck University before going on to complete an MA in creative and critical wri ...

Ahead of this earnings release, the estimate revisions trend for Spotify: favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. While Spotify has outperformed the market so far this year, the question that ...

Monthly active users rose 14% to 626 million and expanded across all regions, although a bit below Wall Street's guidance. But subscribers jumped 12% to 246 million, beating estimates and driving a 20% just in revenue to 3.8 billion euros driven by the subscriber gains and increases in ARPU (average revenue per user). Spotify reported a profit of €274 million (about $298 million) driven in part by higher sales and lower marketing but also by "efficiency actions" last year meaning layoffs and restructuring. ...