[Executive Summary](index=3&type=section&id=Executive%20Summary) [Q4 2023 Performance Overview](index=3&type=section&id=Q4%202023%20Performance%20Overview) Spotify's Q4 2023 performance exceeded guidance for MAU and subscriber growth, with 20% constant currency revenue growth and improved gross margin - MAU net additions of **28 million** surpassed guidance by **1 million**[3](index=3&type=chunk) - Subscriber net additions of **10 million** were also ahead by **1 million**[3](index=3&type=chunk) - Revenue grew **20% Y/Y** on a constant currency basis, reflecting ~300 bps of sequential acceleration vs. Q3'23[3](index=3&type=chunk) - Gross Margin of **26.7%** was ahead and up **140 bps Y/Y**[3](index=3&type=chunk) - Operating Loss was **(€75) million**, but Adjusted Operating Income was **€68 million** (excluding €143 million in efficiency charges)[3](index=3&type=chunk) - Free Cash Flow was **€396 million** in the quarter[3](index=3&type=chunk) [User & Financial Summary Table](index=3&type=section&id=User%20%26%20Financial%20Summary%20Table) The summary table provides a snapshot of Spotify's user growth and key financial metrics for Q4 2023 compared to previous periods, highlighting significant year-over-year increases in MAUs, Premium Subscribers, Total Revenue, and Gross Profit | USER & FINANCIAL SUMMARY | Q4 2022 | Q3 2023 | Q4 2023 | Y/Y | Q/Q | | --- | --- | --- | --- | --- | --- | | USERS (millions) | | | | | | | Total Monthly Active Users ("MAUs") | 489 | 574 | 602 | 23% | 5% | | Premium Subscribers | 202 | 226 | 236 | 15% | 4% | | Ad-Supported MAUs | 285 | 361 | 379 | 28% | 5% | | FINANCIALS (€ million) | | | | | | | Premium | 2,717 | 2,910 | 3,170 | 17% | 8% | | Ad-Supported | 449 | 447 | 501 | 12% | 12% | | Total Revenue | 3,166 | 3,357 | 3,671 | 16% | 9% | | Gross Profit | 801 | 885 | 980 | 22% | 11% | | Gross Margin | 25.3% | 26.4% | 26.7% | - | - | | Operating (Loss)/Income | (231) | 32 | (75) | - | - | | Operating Margin | (7.3%) | 1.0% | (2.0%) | - | - | | Net Cash Flows From Operating Activities | (70) | 211 | 397 | - | - | | Free Cash Flow* | (73) | 216 | 396 | - | - | [Key Highlights](index=4&type=section&id=Key%20Highlights) [MAU and Subscriber Performance](index=4&type=section&id=MAU%20and%20Subscriber%20Performance) Spotify achieved record full-year MAU and Premium Subscriber net additions, with Q4 MAUs reaching 602 million (up 23% Y/Y) and Premium Subscribers reaching 236 million (up 15% Y/Y), both exceeding guidance - MAUs grew **23% Y/Y** to **602 million**, **1 million** above guidance, contributing to record full year net additions of **113 million**[8](index=8&type=chunk) - Premium Subscribers grew **15% Y/Y** to **236 million**, **1 million** above guidance, contributing to record full year net additions of **31 million**[8](index=8&type=chunk) [Revenue and Gross Margin](index=4&type=section&id=Revenue%20and%20Gross%20Margin) Total Revenue for Q4 reached €3.7 billion, growing 16% Y/Y (20% Y/Y constant currency), showing acceleration from Q3'23. Gross Margin expanded to 26.7%, an increase of 140 bps Y/Y - Total Revenue grew **16% Y/Y** to **€3.7 billion**[8](index=8&type=chunk) - On a constant currency basis, Total Revenue grew **20% Y/Y** vs. **17%** in Q3'23[8](index=8&type=chunk) - Gross Margin finished at **26.7%**, up **140 bps Y/Y**[8](index=8&type=chunk) [Product and Platform Initiatives](index=4&type=section&id=Product%20and%20Platform%20Initiatives) Spotify's Q4 initiatives included the successful 9th annual Spotify Wrapped campaign, expansion of the Spotify Audience Network, integration of over 200,000 audiobook titles into Premium in the US, and the unveiling of a personalized in-app Merch hub - Users engaging with the 9th annual year-end Spotify Wrapped campaign grew more than **40% Y/Y** across **170 markets**[8](index=8&type=chunk) - Expanded the Spotify Audience Network into **five new markets**[8](index=8&type=chunk) - Incorporated over **200,000 audiobook titles** into the Premium offering in the United States[8](index=8&type=chunk) - Unveiled the first ever personalized in-app Merch hub[8](index=8&type=chunk) [Actuals vs. Guidance](index=5&type=section&id=Actuals%20vs.%20Guidance) Spotify's Q4 2023 actuals exceeded guidance for Monthly Active Users, Premium Subscribers, Gross Margin, and Operating (Loss)/Income, while Total Revenue was in-line with guidance | | Results | Q4 2023 Actuals | Guidance | | --- | --- | --- | --- | | Users | Monthly Active Users (millions) | Above | 602 | 601 | | | Premium Subscribers (millions) | Above | 236 | 235 | | Financials | Total Revenue (€ billion) | In-line | €3.7 | €3.7 | | | Gross Margin | Above | 26.7% | 26.6% | | | Operating (Loss)/Income (€ million) | Above | (€75) | (€93) - (€108) | [Financial Summary](index=6&type=section&id=FINANCIAL%20SUMMARY) [Overall Financial Performance](index=7&type=section&id=Overall%20Financial%20Performance) Spotify's Q4 2023 financial performance showed strong revenue growth, improved gross margin, and positive free cash flow, despite an operating loss influenced by efficiency-related charges. The company maintains a strong balance sheet with substantial cash reserves | USER, FINANCIAL & LIQUIDITY SUMMARY | Q4 2022 | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Y/Y | Y/Y FXN | | --- | --- | --- | --- | --- | --- | --- | --- | | USERS (millions) | | | | | | | | | Total Monthly Active Users ("MAUs") | 489 | 515 | 551 | 574 | 602 | 23% | - | | Premium Subscribers | 202 | 210 | 220 | 226 | 236 | 15% | - | | Ad-Supported MAUs | 285 | 317 | 343 | 361 | 379 | 28% | - | | FINANCIALS (€ million) | | | | | | | | | Premium | 2,717 | 2,713 | 2,773 | 2,910 | 3,170 | 17% | 21% | | Ad-Supported | 448 | 329 | 404 | 447 | 501 | 12% | 17% | | Total Revenue | 3,166 | 3,042 | 3,177 | 3,357 | 3,671 | 16% | 20% | | Gross Profit | 801 | 766 | 788 | 885 | 980 | 22% | 26% | | Gross Margin | 25.3% | 25.2% | 24.1% | 26.4% | 26.7% | - | - | | Total Operating Expenses | 1,032 | 922 | 1,013 | 853 | 1,055 | 2% | 6% | | Operating (Loss)/Income | (231) | (156) | (247) | 32 | (75) | - | - | | Operating Margin | (7.3%) | (5.1%) | (7.8%) | 1.0% | (2.0%) | - | - | | FREE CASH FLOW & LIQUIDITY (€ million, unless otherwise denoted) | | | | | | | | | Net Cash Flows From Operating Activities | (70) | 58 | 13 | 211 | 397 | - | - | | Free Cash Flow* | (73) | 57 | 12 | 216 | 396 | - | - | | Cash & Cash Equivalents, Restricted Cash & Short Term Investments (€ billion) | 3.4 | 3.5 | 3.5 | 3.8 | 4.3 | - | - | - Revenue of **€3,671 million** grew **16% Y/Y** in Q4 (or **20% Y/Y** constant currency), driven by Premium Revenue growth of **17% Y/Y** (**21% Y/Y** constant currency) and Ad-Supported Revenue growth of **12% Y/Y** (**17% Y/Y** constant currency)[12](index=12&type=chunk) - Gross Margin was **26.7%** in Q4, up **140 bps Y/Y**, reflecting improved podcast and music profitability and other Cost of Revenue favorability, partially offset by audiobooks start-up costs and severance charges[12](index=12&type=chunk) - Operating Loss was **(€75) million**, including **€143 million** in net severance and real estate optimization charges. Excluding these, Adjusted Operating Income was **€68 million**[12](index=12&type=chunk) - Free Cash Flow was **€396 million** in Q4, with liquidity remaining strong at **€4.3 billion** in cash and equivalents[12](index=12&type=chunk) [Revenue Breakdown](index=9&type=section&id=Revenue%20Breakdown) Total revenue reached €3,671 million, driven by strong Premium subscriber growth and price increases, alongside double-digit growth in Ad-Supported revenue across all regions [Premium Revenue](index=9&type=section&id=Premium%20Revenue) - Premium Revenue grew **17% Y/Y** to **€3,170 million** (or **21% Y/Y** constant currency), reflecting subscriber growth of **15% Y/Y**[13](index=13&type=chunk) - Premium ARPU increased **1% Y/Y** to **€4.60** (or up **5% Y/Y** constant currency), driven by price increase benefits, partially offset by product and market mix[13](index=13&type=chunk) [Ad-Supported Revenue](index=9&type=section&id=Ad-Supported%20Revenue) - Ad-Supported revenue grew **12% Y/Y** (or **17% Y/Y** constant currency), reaching an all-time high with Y/Y growth across all regions[14](index=14&type=chunk) - Music advertising revenue grew **double-digits** due to growth in impressions sold and stable pricing[14](index=14&type=chunk) - Podcast advertising revenue grew in the **healthy double-digit range**, driven by significant growth in sold impressions across Original and Licensed podcasts and the Spotify Audience Network[14](index=14&type=chunk) [Gross Margin Analysis](index=10&type=section&id=Gross%20Margin%20Analysis) Total Gross Margin improved significantly to 26.7% in Q4, driven by better profitability in podcasting and music, and other cost of revenue favorability, partially offset by audiobook start-up costs and severance charges [Total Gross Margin](index=10&type=section&id=Total%20Gross%20Margin) - Total Gross Margin finished at **26.7%** in Q4, up **140 bps Y/Y**[19](index=19&type=chunk) - The Y/Y trend reflects improvement in podcasting, music, and Other Cost of Revenue favorability, partially offset by audiobooks start-up costs and severance related charges[19](index=19&type=chunk) [Premium Gross Margin](index=10&type=section&id=Premium%20Gross%20Margin) - Premium Gross Margin was **29.1%** in Q4, up **45 bps Y/Y**[22](index=22&type=chunk) - The Y/Y trend reflects improvement in music profitability (aided by Marketplace growth) and Other Cost of Revenue favorability, partially offset by audiobooks start-up costs and severance related charges[22](index=22&type=chunk) [Ad-Supported Gross Margin](index=10&type=section&id=Ad-Supported%20Gross%20Margin) - Ad-Supported Gross Margin was **11.6%** in Q4, up **645 bps Y/Y**[24](index=24&type=chunk) - The Y/Y trend reflects improvement in podcast trends and music profitability, as well as Other Cost of Revenue favorability, partially offset by severance related charges[24](index=24&type=chunk) [Operating Expenses](index=11&type=section&id=Operating%20Expenses) Operating Expenses grew 2% Y/Y (6% constant currency), primarily due to €139 million in efficiency-related charges and €32 million in Social Charge movements. This was partially offset by lower marketing and personnel costs - Operating Expenses grew **2% Y/Y** (or **6%** constant currency) due primarily to **€139 million** in charges related to efficiency efforts, which contributed ~1,300 bps to Y/Y growth[25](index=25&type=chunk) - Y/Y changes in Social Charge movements of **€32 million** impacted Y/Y expense growth by ~300 bps[25](index=25&type=chunk) - The Y/Y decline in all other Operating Expenses reflected lower marketing expenses and a decrease in personnel and related costs[25](index=25&type=chunk) - Social Charges related to share-based compensation were **€33 million** in the current period vs. **€1 million** in the prior year period, influenced by stock price movements[26](index=26&type=chunk) [Free Cash Flow & Liquidity](index=12&type=section&id=Free%20Cash%20Flow%20%26%20Liquidity) Free Cash Flow significantly increased to €396 million in Q4, driven by improved net working capital and higher net income (adjusted for non-cash items). The company maintains a strong balance sheet with €4.3 billion in cash and equivalents - Free Cash Flow was **€396 million** in Q4, an increase Y/Y as a result of increased favorability in net working capital and higher Net Income adjusted for non-cash items[29](index=29&type=chunk) - Capital expenditures declined **€4 million Y/Y** to **€1 million** due to the completion of office build-outs[29](index=29&type=chunk) - Liquidity and balance sheet remained strong, with **€4.3 billion** in cash and cash equivalents, restricted cash and short term investments[30](index=30&type=chunk) - On a cumulative basis, Spotify has generated nearly **€2.0 billion** of Free Cash Flow since the beginning of 2016[30](index=30&type=chunk) [MAUs & Subscribers](index=13&type=section&id=MAUS%20%26%20SUBSCRIBERS) [Monthly Active Users (MAUs)](index=14&type=section&id=Monthly%20Active%20Users%20%28MAUs%29) Spotify's Total MAUs grew 23% Y/Y to 602 million, exceeding guidance by 1 million, driven by sustained double-digit growth across all regions, particularly Latin America and Rest of World - Total MAUs grew **23% Y/Y** to **602 million**, up from **574 million** last quarter and above guidance by **1 million**[36](index=36&type=chunk) - Performance was impacted by sustained **double-digit Y/Y growth** in all regions and outperformance in Latin America and Rest of World[38](index=38&type=chunk) [Premium Subscribers](index=15&type=section&id=Premium%20Subscribers) Premium Subscribers increased 15% Y/Y to 236 million, surpassing guidance by 1 million, with strong double-digit growth across all regions, led by Rest of World and Latin America, and better-than-expected promotional campaign intake - Premium Subscribers grew **15% Y/Y** to **236 million**, up from **226 million** last quarter and above guidance by **1 million**[39](index=39&type=chunk) - Quarterly performance was impacted by **double-digit Y/Y growth** across all regions, outperformance led by Rest of World and Latin America, and better than expected Q4 promotional campaign intake[41](index=41&type=chunk) [Product & Platform](index=16&type=section&id=PRODUCT%20%26%20PLATFORM) [9th Annual Wrapped Campaign](index=17&type=section&id=9th%20Annual%20Wrapped%20Campaign) Spotify's 9th annual Wrapped campaign engaged over 225 million MAUs (up >40% Y/Y) across 170 markets, featuring personalized artist messages that generated nearly 725 million video views, with significant engagement from Gen Z users - More than **225 million MAUs** engaged with Wrapped content in Q4 (up more than **40% Y/Y**) across **170 markets**[43](index=43&type=chunk) - The 2023 campaign included Your Artist Messages with video clips of over **40,000 artists**, generating nearly **725 million video views**, with over half coming from Gen Z users[43](index=43&type=chunk) [Building the World's 1 Audio Network](index=18&type=section&id=Building%20the%20World%27s%20%231%20Audio%20Network) Spotify expanded its Audience Network into five new markets, integrated over 200,000 audiobooks into its Premium offering in the US, and launched a new original podcast, 'What Now? with Trevor Noah,' to strengthen its position as a leading audio platform - Expanded the Spotify Audience Network (SPAN) into **five new markets** (India, Japan, Brazil, Mexico, and Sweden), now operating in **14 total markets**[46](index=46&type=chunk) - Made over **200,000 audiobooks** available to eligible Premium Subscribers in the United States with up to **15 hours** of audiobook access a month[47](index=47&type=chunk) - Launched a new original podcast, 'What Now? with Trevor Noah,' featuring interviews with various guests[48](index=48&type=chunk) [Music & Merch Hub](index=19&type=section&id=Music%20%26%20Merch%20Hub) Spotify highlighted Bad Bunny's successful pre-release campaign and Taylor Swift being named the Top Global Artist for 2023. The company also launched its first personalized in-app Merch Hub, enhancing user engagement with artist merchandise - Bad Bunny's pre-release campaign for his new album had the most successful 'Countdown to Release' to date and earned over **500 million streams**[51](index=51&type=chunk) - Launched the first ever in-app Merch Hub, providing personalized merchandise recommendations based on user listening habits[51](index=51&type=chunk) - Taylor Swift was named the Top Global Artist for 2023 with more than **26.1 billion global streams**[51](index=51&type=chunk) [Outlook for Q1 2024](index=20&type=section&id=OUTLOOK) [Q1 2024 Guidance](index=21&type=section&id=Q1%202024%20Guidance) Spotify provided guidance for Q1 2024, projecting continued growth in MAUs and Premium Subscribers, with total revenue expected to be €3.6 billion and a gross margin of 26.4%. Operating income is anticipated to be €180 million | | Q1 2024 Guidance | | --- | --- | | Total MAUs (millions) | 618 million (implies ~16 million net new MAUs) | | Total Premium Subscribers (millions) | 239 million (implies ~3 million net new subscribers) | | Total Revenue (€ billion) | €3.6 billion (assumes ~250 bps headwind to growth Y/Y due to FX) | | Gross Margin | 26.4% (primarily driven by Y/Y improvement in music, podcasting, and Other Cost of Revenue) | | Operating Income (€ million) | €180 million (Social Charges based on Q4 close share price of $187.91) | [Financial Statements](index=23&type=section&id=FINANCIAL%20STATEMENTS) [Trending Charts](index=24&type=section&id=Trending%20Charts) This section provides visual trending charts illustrating key metrics such as Monthly Active Users, Ad-Supported Users, Premium Subscribers, Revenue by Segment, Gross Profit by Segment, Gross Margin by Segment, and Free Cash Flow over recent quarters and on a Last Twelve Months (LTM) basis - Visual charts depict trends for MAUs, Ad-Supported Users, Premium Subscribers, and Revenue by Segment (Premium and Ad-Supported) over time[61](index=61&type=chunk)[62](index=62&type=chunk) - Additional charts illustrate Gross Profit by Segment (Premium and Ad-Supported), Gross Margin by Segment, and Free Cash Flow trends[64](index=64&type=chunk)[65](index=65&type=chunk) [Consolidated Statement of Operations](index=26&type=section&id=Consolidated%20statement%20of%20operations) The consolidated statement of operations presents Spotify's financial performance for the three and twelve months ended December 31, 2023, detailing revenue, cost of revenue, gross profit, operating expenses, and net loss attributable to owners of the parent | | Three months ended (€ million) | | Twelve months ended (€ million) | | | --- | --- | --- | --- | --- | | | December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | | Revenue | 3,671 | 3,357 | 3,166 | 13,247 | 11,727 | | Cost of revenue | 2,691 | 2,472 | 2,365 | 9,850 | 8,801 | | Gross profit | 980 | 885 | 801 | 3,397 | 2,926 | | Research and development | 468 | 369 | 415 | 1,725 | 1,387 | | Sales and marketing | 432 | 355 | 453 | 1,533 | 1,572 | | General and administrative | 155 | 129 | 164 | 585 | 626 | | Total Operating Expenses | 1,055 | 853 | 1,032 | 3,843 | 3,585 | | Operating (loss)/income | (75) | 32 | (231) | (446) | (653) | | Finance income | 46 | 55 | 26 | 161 | 421 | | Finance costs | (102) | (14) | (86) | (220) | (132) | | Finance (costs) income - net | (56) | 41 | (60) | (59) | 289 | | (Loss)/income before tax | (131) | 73 | (291) | (505) | (370) | | Income tax (benefit)/expense | (61) | 8 | (21) | 27 | 60 | | Net (loss)/income attributable to owners of the parent | (70) | 65 | (270) | (532) | (430) | | (Loss) earnings per share attributable to owners of the parent (€) | | | | | | | Basic (€) | (0.36) | 0.33 | (1.40) | (2.73) | (2.23) | | Diluted (€) | (0.38) | 0.33 | (1.40) | (2.73) | (2.93) | | Weighted-average ordinary shares outstanding (Basic) (shares) | 196,036,080 | 194,881,723 | 193,228,229 | 194,732,304 | 192,934,862 | | Weighted-average ordinary shares outstanding (Diluted) (shares) | 196,036,080 | 198,012,369 | 193,228,229 | 194,732,304 | 195,846,362 | [Consolidated Statement of Financial Position](index=27&type=section&id=Consolidated%20statement%20of%20financial%20position) The consolidated statement of financial position provides a snapshot of Spotify's assets, liabilities, and equity as of December 31, 2023, compared to the prior year, indicating the company's financial health and structure | | December 31, 2023 (€ million) | December 31, 2022 (€ million) | | --- | --- | --- | | Assets | | | | Non-current assets | | | | Lease right-of-use assets | 300 | 417 | | Property and equipment | 247 | 348 | | Goodwill | 1,137 | 1,168 | | Intangible assets | 84 | 127 | | Long term investments | 1,215 | 1,138 | | Restricted cash and other non-current assets | 75 | 78 | | Deferred tax assets | 28 | 8 | | Total Non-current assets | 3,086 | 3,284 | | Current assets | | | | Trade and other receivables | 858 | 690 | | Income tax receivable | 20 | 5 | | Short term investments | 1,100 | 867 | | Cash and cash equivalents | 3,114 | 2,483 | | Other current assets | 168 | 307 | | Total Current assets | 5,260 | 4,352 | | Total assets | 8,346 | 7,636 | | Equity and liabilities | | | | Equity | | | | Share capital | 1 | - | | Other paid in capital | 5,155 | 4,789 | | Treasury shares | (262) | (262) | | Other reserves | 1,812 | 1,521 | | Accumulated deficit | (4,182) | (3,647) | | Equity attributable to owners of the parent | 2,523 | 2,401 | | Non-current liabilities | | | | Exchangeable Notes | 1,203 | 1,128 | | Lease liabilities | 493 | 555 | | Accrued expenses and other liabilities | 26 | 28 | | Provisions | 3 | 3 | | Deferred tax liabilities | 8 | 5 | | Total Non-current liabilities | 1,733 | 1,719 | | Current liabilities | | | | Trade and other payables | 978 | 845 | | Income tax payable | 12 | 11 | | Deferred revenue | 622 | 520 | | Accrued expenses and other liabilities | 2,440 | 2,093 | | Provisions | 21 | 26 | | Derivative liabilities | 17 | 21 | | Total Current liabilities | 4,090 | 3,516 | | Total liabilities | 5,823 | 5,235 | | Total equity and liabilities | 8,346 | 7,636 | [Consolidated Statement of Cash Flows](index=28&type=section&id=Consolidated%20statement%20of%20cash%20flows) The consolidated statement of cash flows details Spotify's cash movements from operating, investing, and financing activities for the three and twelve months ended December 31, 2023, showing a significant increase in net cash flows from operating activities | | Three months ended (€ million) | | Twelve months ended (€ million) | | | --- | --- | --- | --- | --- | | | December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | | Operating activities | | | | | | | Net (loss)/income | (70) | 65 | (270) | (532) | (430) | | Net cash flows from/(used in) operating activities | 397 | 211 | (70) | 680 | 46 | | Investing activities | | | | | | | Business combinations, net of cash acquired | - | - | (295) | - | (295) | | Purchases of property and equipment | (5) | (1) | (1) | (6) | (25) | | Net cash flows used in investing activities | (5) | (101) | (423) | (217) | (203) | | Financing activities | | | | | | | Payments of lease liabilities | (11) | (13) | (12) | (43) | (66) | | Repurchases of ordinary shares | - | - | (2) | - | (2) | | Net cash flows from/(used in) financing activities | 194 | (1) | (21) | 234 | (40) | | Net increase/(decrease) in cash and cash equivalents | 586 | (192) | 7 | 697 | (417) | | Cash and cash equivalents at beginning of the period | 2,615 | 2,550 | 2,851 | 2,483 | 2,744 | | Net foreign exchange (losses)/gains on cash and cash equivalents | (87) | 58 | (176) | (66) | 156 | | Cash and cash equivalents at period end | 3,114 | 2,615 | 2,483 | 3,114 | 2,483 | [Calculation of Basic and Diluted (Loss)/Earnings Per Share](index=29&type=section&id=Calculation%20of%20basic%20and%20diluted%20%28loss%29%2Fearnings%20per%20share) This section provides the calculation of basic and diluted loss/earnings per share for Spotify, showing the net loss attributable to owners of the parent and the weighted-average ordinary shares outstanding for the three and twelve months ended December 31, 2023 | | Three months ended (€ million) | | Twelve months ended (€ million) | | | --- | --- | --- | --- | --- | | | December 31, 2023 | September 30, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | | Basic (loss)/earnings per share (€) | | | | | | | Net (loss)/income attributable to owners of the parent | (70) | 65 | (270) | (532) | (430) | | Weighted-average ordinary shares outstanding (shares) | 196,036,080 | 194,881,723 | 193,228,229 | 194,732,304 | 192,934,862 | | Basic (loss)/earnings per share attributable to owners of the parent (€) | (0.36) | 0.33 | (1.40) | (2.73) | (2.23) | | Diluted (loss)/earnings per share (€) | | | | | | | Net (loss)/income attributable to owners of the parent | (70) | 65 | (270) | (532) | (430) | | Fair value gains on dilutive Exchangeable Notes | 1 | - | - | - | (144) | | Net (loss) income used in the computation of diluted (loss)/earnings per share | (70) | 65 | (270) | (532) | (574) | | Diluted weighted-average ordinary shares (shares) | 196,036,080 | 198,012,369 | 193,228,229 | 194,732,304 | 195,846,362 | | Diluted (loss)/earnings per share attributable to owners of the parent (€) | (0.36) | 0.33 | (1.40) | (2.73) | (2.93) | [Reconciliation of IFRS to Non-IFRS Results](index=30&type=section&id=Reconciliation%20of%20IFRS%20to%20non-IFRS%20results) [Revenue on a Constant Currency Basis](index=30&type=section&id=Revenue%20on%20a%20constant%20currency%20basis) This reconciliation adjusts Spotify's IFRS revenue figures for the impact of foreign exchange rate movements, providing a clearer view of underlying revenue growth for total, premium, and ad-supported segments | | Three months ended (€ million) | | Twelve months ended (€ million) | | | --- | --- | --- | --- | --- | | | December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | | IFRS revenue | 3,671 | 3,166 | 13,247 | 11,727 | | Foreign exchange effect on 2023 revenue using 2022 rates | (143) | | (660) | | | Revenue excluding foreign exchange effect | 3,814 | | 13,646 | | | IFRS revenue year-over-year change % | 16% | | 13% | | | Revenue excluding foreign exchange effect year-over-year change % | 20% | | 18% | | | IFRS Premium revenue | 3,170 | 2,717 | 11,566 | 10,251 | | Foreign exchange effect on 2023 Premium revenue using 2022 rates | (118) | | (342) | | | Premium revenue excluding foreign exchange effect | 3,288 | | 11,908 | | | IFRS Premium revenue year-over-year change % | 17% | | 13% | | | Premium revenue excluding foreign exchange effect year-over-year change % | 21% | | 16% | | | IFRS Ad-Supported revenue | 501 | 449 | 1,681 | 1,476 | | Foreign exchange effect on 2023 Ad-Supported revenue using 2022 rates | (25) | | (57) | | | Ad-Supported revenue excluding foreign exchange effect | 526 | | 1,738 | | | IFRS Ad-Supported revenue year-over-year change % | 12% | | 14% | | | Ad-Supported revenue excluding foreign exchange effect year-over-year change % | 17% | | 18% | | [Operating Expenses on a Constant Currency Basis](index=31&type=section&id=Operating%20expenses%20on%20a%20constant%20currency%20basis) This reconciliation adjusts Spotify's IFRS operating expenses for foreign exchange effects, providing a constant currency view of total operating expenses, research and development, sales and marketing, and general and administrative expenses | | Three months ended (€ million) | | Twelve months ended (€ million) | | | --- | --- | --- | --- | --- | | | December 31, 2023 | December 31, 2022 | December 31, 2023 | December 31, 2022 | | IFRS Operating expenses | 1,055 | 1,032 | 3,843 | 3,585 | | Foreign exchange effect on 2023 operating expenses using 2022 rates | 141 | | 102 | | | Operating expenses excluding foreign exchange effect | 1,196 | | 3,945 | | | IFRS Operating expenses year over year change % | 2% | | 7% | | | Operating expenses excluding foreign exchange effect year-over-year change % | 16% | | 10% | | | IFRS Research and development expenses | 468 | 415 | 1,725 | 1,387 | | Foreign exchange effect on 2023 expenses using 2022 rates | 44 | | 44 | | | Research and development expenses excluding foreign exchange effect | 512 | | 1,769 | | | IFRS Research and development expenses year over year change % | 13% | | 24% | | | Research and development expenses excluding foreign exchange effect year-over-year-change % | 23% | | 28% | | | IFRS Sales and marketing expenses | 432 | 453 | 1,533 | 1,572 | | Foreign exchange effect on 2023 expenses using 2022 rates | 57 | | 57 | | | Sales and marketing expenses excluding foreign exchange effect | 489 | | 1,590 | | | IFRS Sales and marketing expenses year over year change % | (5)% | | (2)% | | | Sales and marketing expenses excluding foreign exchange effect year-over-year change % | 8% | | 1% | | | IFRS General and administrative expenses | 155 | 164 | 585 | 626 | | Foreign exchange effect on 2023 expenses using 2022 rates | 40 | | 40 | | | General and administrative expenses excluding foreign exchange effect | 195 | | 625 | | | IFRS General and administrative expenses year over year change % | (5)% | | (6)% | | | General and administrative expenses excluding foreign exchange effect year-over-year change % | 19% | | (0)% | | [Free Cash Flow Reconciliation](index=32&type=section&id=Free%20Cash%20Flow) This section reconciles net cash flows from operating activities to Free Cash Flow, detailing adjustments for capital expenditures and changes in restricted cash on both a quarterly and last twelve months (LTM) basis | | Three months ended (€ million) | | | --- | --- | --- | | | December 31, 2023 | September 30, 2023 | December 31, 2022 | | Net cash flows from/(used in) operating activities | 397 | 211 | (70) | | Capital expenditures | (1) | (1) | (1) | | Change in restricted cash | - | - | - | | Free Cash Flow | 396 | 216 | (73) | | | Last twelve months ended (€ million) | | --- | --- | | | December 31, 2023 | December 31, 2022 | | Net cash flows from operating activities | 680 | 46 | | Capital expenditures | (6) | (25) | | Change in restricted cash | 4 | 3 | | Free Cash Flow | 678 | 24 | [Adjusted Operating Income Reconciliation](index=33&type=section&id=Adjusted%20operating%20income) This reconciliation adjusts Spotify's IFRS operating loss to derive Adjusted Operating Income by adding back employee severance and related charges, and impairment charges on real estate assets, providing a non-IFRS view of profitability | | Three months ended (€ million) | | --- | --- | | | December 31, 2023 | | IFRS operating loss | (75) | | Adjustments: | | | Add: Employee severance and related charges | 110 | | Add: Impairment charge on real estate assets | 33 | | Total adjustments | 143 | | Adjusted operating income (non-IFRS) | 68 | | IFRS operating margin | (2.4)% | | Adjusted operating margin (non-IFRS) | 2.1% |

NEW YORK--(BUSINESS WIRE)--Spotify Technology S.A. (NYSE: SPOT) has released its financial results for the fourth quarter of 2023 today. Please visit investors.spotify.com to view the Shareholder Deck and other supplemental materials. As previously announced, the company will host a live question and answer session to discuss fourth quarter 2023 financial results at 8:00 a.m. Eastern Time. Daniel Ek, our Founder and Chief Executive Officer, and Paul Vogel, our Chief Financial Officer, will be on hand to an ...

Joe Rogan got a new deal from Spotify (SPOT 0.35%) and this one makes all the sense in the world. In this video, Travis Hoium covers why Rogan is helping Spotify win podcasting and advertising long term.*Stock prices used were end-of-day prices of Feb. 2, 2024. The video was published on Feb. 5, 2024. ...

Spotify Technology S.A. (SPOT) will report fourth-quarter 2023 results on Feb 6, before the bell. The company has delivered a trailing four-quarter average earnings surprise of 31.4%.Q4 ExpectationsThe Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $3.96 billion, indicating year-over-year growth of 22.4%. The growth of subscribers and monthly active users is likely to have benefited the top line. However, average revenue per user is expected to have declined due to shifts i ...

Spotify Technology announced a new multi-year deal with the comedian and podcaster Joe Rogan on Friday, in a bid to tap into the popularity of his show to drive its advertising revenue.The multi-year deal with Rogan, which is estimated to be worth as much as $250m, involves an upfront minimum guarantee, plus a revenue sharing agreement based on ad sales, the Wall Street Journal reported on Friday. The company declined to comment on the terms of the deal but in an email response said the estimated value of t ...

Analysts on Wall Street project that Spotify (SPOT) will announce quarterly loss of $0.08 per share in its forthcoming report, representing an increase of 94.4% year over year. Revenues are projected to reach $3.96 billion, increasing 22.4% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Before a company reveals its earning ...

Key PointsShares of Spotify have been trading red-hot in recent weeks. They still have a long way to go to undo 2022’s drop completely, but the momentum is all upward for now. Analyst comments are almost all bullish, and expectations are high for further gains in the near term. 5 stocks we like better than Spotify TechnologyDespite suffering an 80% drop that only bottomed out a year ago, shares of Spotify Technology S.A. NYSE: SPOT have been undergoing something of a resurgence in the twelve months since. L ...

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 ...

Spotify (NYSE:SPOT) stock is up on Tuesday after the streaming company’s shares got an upgrade from UBS analyst Batya Levi.That upgrade has the UBS analysts boosting SPOT stock up from a “neutral” rating to a “buy” rating. For the record, the analysts’ consensus rating for SPOT shares is moderate buy based on 22 opinions.That upgrade also saw Levi increase the firm’s price target for SPOT stock from $170 per share to $274 per share. This represents a potential upside of 25.3% over yesterday’s closing price. ...

UBS upgraded shares of music streaming platform Spotify Technology SA (NYSE:SPOT) to "buy" from "neutral" and hiked its price target from $170 to $274 -- a more than 25% premium to last night's close of $218.61.According to the brokerage's bull note, "[E]fficiency initiatives remain the focus and have increased conviction on sustainable margin expansion and stronger bottom line trends in the coming year." In response to the upgrade, Spotify stock is trading 1.6% higher before the bell, looking to open above ...