Spotify will launch in-app shopping on iPhones in the European Union (EU) on March 7. This new offering is enabled by the rollout of the EU’s Digital Markets Act (DMA), which prohibits the restrictions and 30% fees that Apple currently places on apps offering through its App Store, Spotify said in a Wednesday (Jan. 24) blog post. “For years, even in our own app, Apple had these rules where we couldn’t tell you about offers, how much something costs, or even where or how to buy it. We know, pretty nuts,” Spo ...

Spotify (NYSE:SPOT) stock is getting a boost on Wednesday as it prepares to add in-app purchases to its list of services for customers.This comes as the European Union (EU) prepares to put into effect its Digital Markets Act (DMA) law in March. This saw its designed to allow for more competition among big tech companies.In the case of Spotify, it opens the floodgates for in-app purchases. That includes the ability to buy audiobooks through the streaming service.This is a major win for SPOT stock investors a ...

It’s good to have friends. They come to your birthday party, offer a shoulder to cry on when things are hard and spend precious corporate resources developing apps for your nascent virtual reality platform despite little direct return. It can be tempting to believe that a pile of cash worth $30bn, and a single product line that brings in more than $200bn a year, is an acceptable substitute. But Apple is learning that money can’t buy you everything.Last week, pre-orders opened for the company’s Vision Pro he ...

Spotify is the most dominant force in streaming music.But streaming music is a really, really hard business to make money in.That's why Spotify has spent so much time and money trying to do things beyond streaming music. NEW LOOK Sign up to get the inside scoop on today’s biggest stories in markets, tech, and business — delivered daily. Read preview Thanks for signing up! Access your favorite topics in a personalized feed while you're on the go. Email address By clicking “Sign Up”, you ac ...

Martin Wahlborg/iStock Unreleased via Getty Images Introduction I am a big fan of Spotify (NYSE:SPOT) as a streaming service, and was surprised to find out that the stock currently trades almost two times lower than its all-time high. At the same time, Spotify demonstrates strong growth momentum in its critical success metric, the monthly active users amount ("MAU"). It drives revenue growth, and from the cost side of the equation the management also recently took a bold move to restructure, which will ...

The benchmark S&P 500 stock market index is approaching an all-time high. Around 12 months ago, it was almost inconceivable we would be in this position today, given the index was wrapping up 2022 with an 18% loss.But history is proof the S&P 500 always reaches new heights given enough time, which is why investing for the long term is so important. In fact, staying invested in the stock market for a period of 10 years gives you a 94% chance of making a profit.With that in mind, let's consider music streamin ...

NEW YORK--(BUSINESS WIRE)--Spotify Technology S.A. (NYSE: SPOT) will post its fourth quarter 2023 financial results and deck to shareholders on Tuesday, February 6, 2024 before market open. The company will hold a question and answer session to discuss fourth quarter 2023 financial results at 8:00 am Eastern Time. Management will answer questions submitted via Slido. Questions may be submitted on the day of the call at www.slido.com using the event code #SpotifyEarningsQ423. A live webcast of the earnings ...

Spotify has withdrawn its support from two music festivals in France in response to the country’s introduction of a new tax that is opposed by music-streaming platforms.The company’s managing director for the France and Benelux regions, Antoine Monin, expressed his dissatisfaction with the tax in a post on X, and the company called the tax a “real blow to innovation,” TechCrunch reported Friday (Dec. 22).In response to the tax, Spotify has decided to withdraw its support from the Francofolies de la Rochelle ...

Spotify Technology stock was climbing Thursday after an upbeat analyst report cited confidence for the future of the audio-streaming-services firm after a strong year of gains. ...

Financial Data and Key Metrics Changes - In Q3 2023, Spotify reported a revenue growth of 11% year-on-year, reaching EUR3.4 billion, with FX-neutral growth at 17% [40] - The company achieved a gross margin of 26.4%, exceeding guidance by 40 basis points, primarily due to improvements in the music business [69] - Free cash flow was positive at EUR216 million in Q3, with expectations for continued improvement in gross margins and operating income into 2024 [24][44] Business Line Data and Key Metrics Changes - Monthly Active Users (MAU) grew by 23 million to 574 million, with net subscribers increasing by 6 million to 226 million, both exceeding historical trends [7][8] - The company forecasts reaching 601 million MAU and 235 million subscribers by the end of Q4 2023, marking a significant increase from Q3 [8] - The audiobooks offering is expected to enhance user engagement and reduce churn, contributing positively to the overall value proposition [76] Market Data and Key Metrics Changes - The company anticipates a 300 basis point headwind to growth due to the strengthening euro against the dollar, but constant currency revenue is expected to grow by 20% year-on-year [19] - Advertising growth accelerated to 24% in constant currency, up from low to mid-teens in previous quarters, indicating strong performance in this segment [82] Company Strategy and Development Direction - Spotify is focusing on operational efficiencies, reducing marketing costs while maintaining user growth, which is seen as a key strategy moving forward [5][32] - The company plans to continue expanding its product offerings, including audiobooks, to enhance user engagement and drive revenue growth [38][76] - Management emphasizes the importance of providing exceptional value to users, which allows for flexibility in pricing strategies [72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving profitability goals and indicated that Q3 marked an inflection point for the business [9][44] - The company is optimistic about the growth trajectory for 2024, driven by core business performance and new product offerings [49][50] - Management noted that the recent price increases did not significantly impact churn, suggesting a strong value proposition [78] Other Important Information - The company is exploring the use of AI to enhance user engagement and create new monetization opportunities, particularly in advertising [71][89] - Spotify's marketplace is expected to continue growing, contributing positively to margins and overall business performance [95] Q&A Session Summary Question: What are the key incremental drivers of growth as we look into 2024? - Management highlighted the core business's potential for growth, including advertising and marketplace expansion, while noting that audiobooks will contribute positively but are not yet material [49][50] Question: How should we think about the timing for achieving podcast gross margin profitability? - Management indicated that podcasting is on track to reach breakeven soon, with improvements expected in gross margins as advertising revenue increases [60] Question: Can you talk about the cost structure and the economics of audiobooks? - Management stated that while there are initial investments in audiobooks, they expect it to become additive to gross profit in the near future [55][59] Question: How is the company addressing the impact of price increases on subscriber churn? - Management confirmed that churn was in line with expectations following the price increase, with gross intake performing better than anticipated [78] Question: What is driving the acceleration in advertising growth? - Management attributed the acceleration to improved targeting and the effectiveness of advertising products, with a goal of increasing advertising's share of overall revenues [82]