Audio streaming giant Spotify (NYSE: SPOT) shares jumped 13% on February 4 after the company reported its first full year of profitability since its launch more than 16 years ago.The company has consistently posted strong financial results throughout 2024, and the cost-cutting measures put in place starting in 2023 paid off, along with strong user growth and pricing adjustments driving the surge.Spotify year-to-date price chart. Source: Google FinanceSpotify shares closed January 4 at $621.77, hitting fresh ...

Spotify continues to fire on all cylinders, including impressive margin improvements.Spotify stock jumped 10% on Tuesday after earnings were released. Travis Hoium covers the big move in this video.*Stock prices used were end-of-day prices of Feb. 4, 2025. The video was published on Feb. 4, 2025. ...

Core Viewpoint - Spotify Technology S.A. reported strong quarterly sales and user growth, leading to positive analyst ratings despite slightly missing earnings per share estimates [1][2][3]. Financial Performance - Quarterly earnings were $1.88 per share, below the analyst estimate of $2.06, while quarterly sales reached $4.53 billion (4.24 billion euros), up 16% and exceeding the consensus estimate of $4.15 billion [1]. - Monthly average user (MAU) net additions were 35 million, surpassing guidance by 10 million, and subscriber net additions were 11 million, exceeding guidance by 3 million [2]. Analyst Ratings and Expectations - Goldman Sachs analyst Eric Sheridan reiterated a Buy rating with a price target of $550, while JP Morgan analyst Doug Anmuth maintained an Overweight rating [3]. - Analysts expect a positive market reaction due to strong revenue growth, premium subscriber count momentum, and gross margins of 32.2%, above the company's guidance of 31.8% [3]. Forward Guidance - The company guided fiscal first-quarter 2025 MAUs in line with estimates, premium subscribers slightly ahead, and total revenue in line, with operating profit expected to be approximately 23% higher than previous estimates [4]. - The profitability trend into 2025 is viewed favorably, alleviating investor concerns regarding potential headwinds from management commentary and industry news [5]. Strategic Insights - Sheridan's analysis highlights stable user and subscriber trends, rising pricing, and effective subscriber funnel conversion as key drivers for revenue and operating margin improvement [6]. - JP Morgan noted that Spotify is making progress towards medium-term financial targets, with expectations for strong performance across all metrics in the first quarter [8]. Upcoming Earnings Call Focus - Analysts will seek updates on gross margin drivers, operating income, free cash flow, MAU and premium subscriber growth, and pricing strategies during the upcoming earnings call [9].

Here's our initial take on Spotify's (SPOT 10.11%) fourth-quarter financial report.Key MetricsMetricQ4 2023Q4 2024Changevs. ExpectationsRevenue3.67 billion euros4.24 billion euros+16%BeatEarnings per share(0.36 euros)1.76 eurosN/AMissPremium subscribers236 million263 million+11%n/aFree cash flow396 million euros877 million euros+121%n/aCapping an Incredible YearSpotify turned its attention to profits and free cash flow in 2024, and boy did it deliver. Through a combination of price increases and cost cuttin ...

Core Insights - Spotify's shares increased by 10% following the announcement of its first full year of profitability, with a net income of 1.14 billion euros [1] - The company reported a 40% year-over-year growth in gross profit, reaching 477 million euros in operating income, slightly below guidance [1] - Spotify paid a record $10 billion in royalties to the music industry in 2024, with expectations for continued growth due to a new multi-year publishing agreement with Universal Music Group [2] Financial Performance - Revenue for the fourth quarter was reported at 4.24 billion euros, surpassing the expected 4.19 billion euros [3] - Earnings per share were 1.76 euros, which fell short of the expected 1.99 euros [3] - Monthly active users (MAUs) reached 675 million, exceeding the expected 664.3 million [3]

For the quarter ended December 2024, Spotify (SPOT) reported revenue of $4.53 billion, up 14.5% over the same period last year. EPS came in at $1.88, compared to -$0.39 in the year-ago quarter.The reported revenue represents a surprise of +3.81% over the Zacks Consensus Estimate of $4.36 billion. With the consensus EPS estimate being $1.92, the EPS surprise was -2.08%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ...

About this content About Oliver Haill Oliver has been writing about companies and markets since the early 2000s, cutting his teeth as a financial journalist at Growth Company Investor with a focusing on AIM companies and small caps, before a few years later becoming a section editor and then head of research. He joined Proactive after a couple of years freelancing, where he worked for the Financial Times Group, ITV, Press Association, Reuters sports desk, the London Olympic News Service, Rugby World Cup ...

On Tuesday morning, Spotify announced its fourth-quarter earnings, marking its first full year of profitability since its inception 17 years ago. The operating income for the quarter reached a record €477 million ($509.48 million) and amounted to €1.4 billion ($1.495 billion) for the 2024 fiscal year.Spotify also reported an addition of 35 million monthly active users (MAUs), the largest Q4 net addition in the company’s history, surpassing internal projections of 25 million. This increase brings the total t ...

Spotify (SPOT) shares are jumping around 8% in premarket trading Tuesday, after the Swedish audio streaming giant posted its first full-year profit and quarterly revenue that beat estimates. “Spotify hit some huge milestones, including our first full year of profitability,” Chief Executive Officer Daniel Ek said in a post on X. Spotify, which had been cutting costs in recent years, said fourth-quarter revenue jumped 16% year-over-year to 4.24 billion euros ($4.38 billion). That exceeded the 4.16 billion eu ...

Spotify (SPOT) came out with quarterly earnings of $1.88 per share, missing the Zacks Consensus Estimate of $1.92 per share. This compares to loss of $0.39 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -2.08%. A quarter ago, it was expected that this music-streaming service operator would post earnings of $1.75 per share when it actually produced earnings of $1.59, delivering a surprise of -9.14%.Over the last four quarters, ...