Spotify is firing on all cylinders and may be nearing a growth inflection point.Spotify's (SPOT 10.80%) earnings were strong once again, as the company's focus on profits and cash flow paid off. But it was the level of margin expansion that shocked investors. In this video, Travis Hoium shows where the company is winning and where there's still opportunities ahead.*Stock prices used were end-of-day prices of Nov. 12, 2024. The video was published on Nov. 12, 2024. ...

Shares of Spotify Technology SA SPOT were climbing Wednesday after the company reported upbeat third-quarter earnings.Here are some key analyst takeaways.Macquarie Equity Research analyst Tim Nollen maintained an Outperform, while raising the price target higher from $395 to $500.Goldman Sachs analyst Eric Sheridan reiterated a Buy, while lifting the price target from $430 to $490.Bank of America Securities analyst Jessica Reif Ehrlich reaffirmed a Buy rating, while raising the price target from $430 to $51 ...

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 ...

Key TakeawaysSpotify shares jumped in extended trading on Tuesday after the streaming media giant topped Wall Street’s third-quarter subscriber growth estimates and issued a better-than-expected profit outlook.The stock has continued to track higher after retesting the top trendline of an ascending triangle, though an RSI reading over 70 signals overbought conditions.A bars pattern, which extracts the stock’s upward trend from January to April and repositions it from the ascending triangle’s top trendline, ...

Financial Data and Key Metrics - MAU grew by 14 million to 640 million, and 6 million net subscribers were added, reaching 252 million, both outperforming guidance by 1 million [14] - Total revenue grew 21% YoY on a constant-currency basis to EUR4 billion, with premium revenue rising 24% YoY [14] - Advertising business saw currency-neutral growth of 7% YoY, reflecting volatile market spending on brand-related campaigns [14] - Gross margin reached a record 31.1%, surpassing guidance by 90 basis points, primarily due to content cost favorability [15] - Operating income set a new record at EUR454 million, impacted by EUR54 million in social charges [15] - Free cash flow reached a record EUR711 million, driven by improved operating income and net working capital favorability [16] Business Line Performance - Premium revenue growth was driven by subscriber growth and ARPU acceleration due to price increases [14] - Advertising revenue growth was slower than MAU growth, with advertising revenue shrinking from over 14% of total revenue to under 12% [29] - Audiobooks saw strong adoption, with more than five hours of additional consumption per user in the US [32] Market Performance - The company expects Q4 MAU to reach 665 million, an increase of 25 million from Q3, and 260 million subscribers, an increase of 8 million [17] - Q4 revenue is forecasted at EUR4.1 billion, with gross margin expected to be 31.8% and operating income at EUR481 million [18] - Foreign exchange rate movements created a larger-than-expected headwind, impacting Q4 outlook by approximately EUR80 million [17] Company Strategy and Industry Competition - The company is focused on balancing growth and profitability, with a strong emphasis on monetization and cost efficiency [7][9] - Spotify is expanding into new areas such as audiobooks, video, and AI-driven innovations to enhance the platform and deepen user value [10][11] - The company is committed to long-term goals shared at Investor Day, with a focus on bold innovation and relentless pursuit of new opportunities [12] Management Commentary on Operating Environment and Future Outlook - Management is optimistic about the current technology landscape, particularly AI, and sees it as a transformative opportunity [10] - The company is focused on delivering exceptional value to users, which drives sustainable growth for all stakeholders [11] - Management expects further progress across key metrics in Q4, setting up a strong foundation for growth and profitability expansion in the coming years [10] Other Important Information - The company has a strong balance sheet with EUR6.1 billion in cash and equivalents and EUR1.3 billion in exchangeable debt [21] - Spotify is piloting a Spotify Ads Exchange and working with demand-side platforms like The Trade Desk to diversify its advertising business [26][29] Q&A Session Summary Question: Capital Allocation - The company is focused on LTV over SAC ratio and will continue to invest in growth areas like audiobooks to drive sustainable profitability [22] Question: Gross Margin Performance - Gross margin improvement was driven by marketplace program development, streaming and delivery cost scaling, and US publishing rate favorability [23] Question: 2025 Drivers - Incremental leverage in 2025 will come from marketplace, bundling, price increases, podcast improvements, and new initiatives like audiobooks [24] Question: Pricing Strategy - Spotify is a price leader in many markets and focuses on adding value to consumers, which allows for future price increases [25] Question: Advertising Business - The company is diversifying its advertising business by building its own ad exchange and moving towards performance-based ad services [26][42] Question: Super Premium Product Offering - Spotify is exploring higher-priced music tiers to address super fans, focusing on consumer value and creator needs [27] Question: 2025 Growth Story - 2025 will be about growth with profitability, driven by technology advancements and adding value to consumers [28] Question: Video Podcasting - Spotify is focused on solving real creator and consumer needs, with an upcoming video event to showcase new innovations [36] Question: Ad-Supported Tier - The company is open to evolving its ad-supported tier but notes the regulatory and industry differences between music and video [38] Question: Revenue Growth - Spotify aims for 20% annual revenue growth, driven by user growth and monetization, with advertising and subscription business as key levers [40] Question: AI and New Features - AI DJ and music videos have significantly improved user engagement and retention, showcasing the strength of Spotify's innovation [45] Question: Competitive Landscape - Spotify feels confident about its growth rates relative to competitors like Apple Music [49]

Spotify (SPOT) reported $4.38 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 20%. EPS of $1.59 for the same period compares to $0.36 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $4.37 billion, representing a surprise of +0.36%. The company delivered an EPS surprise of -9.14%, with the consensus EPS estimate being $1.75.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how ...

More than 15 years of professional investment experience in global equities across all sectors. My investment style is fundamental, bottom-up, long-term, and quality growth-oriented. I am seeking companies specializing in niche markets, with strong growth potential, a solid management team, a sound capital allocation policy, and, most importantly, reasonable valuation. I do not chase quarterly results, nor do I follow the herd mentality. I do not use short-term stock performance as the measure of a company' ...

Spotify (SPOT) came out with quarterly earnings of $1.59 per share, missing the Zacks Consensus Estimate of $1.75 per share. This compares to earnings of $0.36 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -9.14%. A quarter ago, it was expected that this music-streaming service operator would post earnings of $1.08 per share when it actually produced earnings of $1.43, delivering a surprise of 32.41%.Over the last four quart ...

The Spotify logo is displayed on a screen on the floor of the New York Stock Exchange on Dec. 4, 2023.Spotify shares rose in extended trading on Tuesday after the music streaming company issued a profit forecast for the fourth quarter that topped estimates.Here's how the company did, compared to what analysts expected:Earnings per share: 1.45 euros vs. 1.72 euros expected by LSEGRevenue: 3.99 billion euros vs. 4.02 billion euros expected by LSEGMonthly active users (MAUs): 640 million vs. 639 million expect ...

Key TakeawaysSpotify added more subscribers than analysts expected in the third quarter.The audio streaming giant's subscriber outlook also came in slightly ahead of projections. Shares surged in extended trading Tuesday and have more than doubled in value since the start of the year. Spotify (SPOT) added more subscribers than expected in the third quarter, sending shares higher after the bell Tuesday. Monthly active users climbed 11% year-over-year to 640 million, and premium subscriptions came in at 252 ...