Core Insights - Spotify Technology S.A. reported exceptional fourth-quarter fiscal 2025 earnings, leading to an 18% surge in its stock price, surpassing $489 per share [1] Financial Performance - Spotify's Q4 2025 earnings exceeded both analyst and company expectations, with an EPS of €4.43 (approximately $5.27), surpassing the expected €2.74 (about $3.26) by €1.69 [3][7] - The company reported total revenue of €4.531 billion (around $5.392 billion), slightly above the anticipated €4.52 billion, marking a 10% year-over-year increase on a constant currency basis [3][7] User Metrics - Monthly Active Users (MAUs) reached 751 million, an 11% increase year over year, exceeding the expected 745 million [4][7] - Premium subscribers totaled 290 million, reflecting a 10% year-over-year growth, also surpassing the company's initial forecast [4][5][7] Marketing Success - The growth in premium subscribers was partly driven by the successful year-end Wrapped campaign, which saw over 300 million users engage, a 20% increase, and 630 million shares on social media, up 42% [5][6]

分组1: Company Earnings - Spotify Technology SA reported fourth-quarter revenue growth of 13% year-on-year on a constant-currency basis, exceeding earnings expectations despite mixed revenue comparisons [1] - Marriott International Inc posted fourth-quarter revenue of $6.69 billion, slightly beating estimates, although adjusted EPS came in just below consensus [1] - The Coca-Cola Company experienced a 2.8% decline in shares after reporting its first quarterly revenue miss in five years, despite adjusted EPS of $0.58 beating forecasts [2] - Ferrari reported fourth-quarter net revenue of €1.8 billion, exceeding market expectations, leading to a 9% increase in shares [2] - Datadog Inc's shares jumped 16% after reporting fourth-quarter revenue up 29% year-on-year to $953 million, with non-GAAP EPS of $0.59, both surpassing Wall Street expectations [3] - ON Semiconductor posted fourth-quarter earnings with revenue of $1.53 billion, aligning with estimates despite a decline from the previous year [2] 分组2: Market Trends and Economic Indicators - The Dow finished at 50,188, up 52 points or 0.1%, while the S&P 500 fell 23 points, or 0.3%, indicating mixed market performance [7] - Consumer spending appears to be slowing, aligning with weak consumer sentiment, as December retail sales came in flat against expectations of a 0.4% rise [11][18] - The NFIB Small Business Optimism index slipped in January, ending a two-month streak of gains, with fewer firms expecting economic improvement [13] - The US Employment Cost Index rose 0.7% in Q4, slightly below the 0.8% forecast, indicating a moderating labor market [18][19] - Investors are focusing on upcoming economic reports, including the January jobs report, which is expected to provide clarity on labor market conditions [6][24]

Core Insights - Spotify reported Q4 2025 earnings on February 10, 2026, and the results were positively received by investors [1] Financial Performance - The earnings report indicated strong performance metrics that contributed to investor satisfaction [1]

million monthly active users. That's what Spotify had last quarter. That was an increase of 11%.And Spotify says this quarter it could go up by another 8 million or so. Paid subscribers. Spotify last quarter also went up by about 10% to 290 million.That's for the premium subscribers. Margins were a record 33.1%. By the way, that subscriber number was also a record number for those monthly active users.The company rolled out some new AI features, wrapped. There was a lot of engagement there. They also introd ...

Financial Data and Key Metrics Changes - Total revenue grew 13% to EUR 4.5 billion in Q4 2025, with premium revenue rising 14% driven by subscriber growth [32] - Gross margin expanded to 33.1%, an increase of over 80 basis points year-on-year, primarily due to favorable content costs [33] - Operating income reached EUR 701 million, exceeding forecasts by EUR 81 million, with free cash flow at EUR 834 million [33] Business Line Data and Key Metrics Changes - The advertising business grew 4%, remaining flat compared to the previous quarter, but showed a 7% growth when excluding podcast optimization strategies [32] - Podcast consumption increased by over 90% since the launch of the Spotify Partner Program, with more than 530,000 video podcast shows on the platform [16] - Audiobook expansion in premium markets has driven double-digit growth, with leading global publishers crediting Spotify for bringing in new listeners [16] Market Data and Key Metrics Changes - Spotify serves over three-quarters of a billion users globally, marking the highest quarter ever for MAU net additions [13] - The company paid out more than $11 billion to music rights holders in 2025, setting a global record for the highest annual payment from a single source [15] Company Strategy and Development Direction - Spotify aims to be a technology company and the R&D arm for the music industry, focusing on building a technology platform for audio and enhancing user experience through AI and new interfaces [7][8] - The company emphasizes long-term value creation over short-term profitability, prioritizing growth and user engagement [9] - The focus for 2026 is framed as the year of raising ambition, with plans to optimize for user value and drive top-line growth [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued healthy MAU and subscriber growth throughout 2026, maintaining low churn rates [18] - The company is optimistic about the early benefits of the enhanced free tier and expects improved revenue growth in Q1 2026 [35] - Management highlighted the importance of planning and synchronization in the age of AI, emphasizing that good planning will be crucial for utilizing productivity effectively [70] Other Important Information - The company repurchased $433 million worth of shares in Q4 and plans to continue opportunistic capital returns [33] - Spotify is focused on leveraging AI to enhance personalization and engagement, which is expected to drive lifetime value and enterprise value [64] Q&A Session Summary Question: How is Spotify planning to use AI tools and applications for new and evolving product offers? - Management emphasized that AI will enable new business models and enhance user interaction, positioning Spotify as a leading intelligent media service [39][40] Question: What are the drivers of Gross Margin expansion in 2026? - Management indicated that price increases will outpace net content costs, and improvements in the advertising business will support margin development [44][46] Question: Can you provide a progress report on your ad tech platform? - Management reported record levels of advertisers on the platform, indicating positive signs of revenue growth from the re-engineered ad stack [48][49] Question: How do you see the price to value relationship of the service relative to competitors? - Management stated that churn is low and in line with expectations following recent price increases, emphasizing a market-by-market pricing strategy [66][67] Question: What's changed at Spotify following Daniel stepping back from the CEO role? - Management noted a structural change in leadership, focusing on synchronization and planning to maintain growth and market share [68][70]

Financial Data and Key Metrics Changes - Total revenue grew 13% to EUR 4.5 billion in Q4 2025, with premium revenue rising 14% driven by subscriber growth [32][34] - Gross margin expanded to 33.1%, an increase of over 80 basis points year-on-year, primarily due to favorable content costs [33] - Operating income reached EUR 701 million, exceeding forecasts by EUR 81 million, with free cash flow at EUR 834 million [33][34] Business Line Data and Key Metrics Changes - The advertising business grew 4%, remaining flat compared to the previous quarter, but showed a 7% growth when excluding podcast optimization strategies [32] - In podcasting, video podcast consumption increased by over 90% since the launch of the Spotify Partner Program, with more than 530,000 video podcast shows on the platform [16] - The company paid out over $11 billion to music rights holders in 2025, setting a global record for annual payments from a single source [15] Market Data and Key Metrics Changes - Monthly active users (MAUs) reached over 750 million, with a record number of net additions in Q4 2025 [13] - The company aims to convert 10% to 15% of the world's population into subscribers, indicating significant growth potential [18] Company Strategy and Development Direction - The company emphasizes a long-term growth strategy, prioritizing user and creator experiences while focusing on technology and innovation [5][9] - The focus for 2026 is framed as the year of raising ambition, with plans to enhance product offerings and user engagement through AI and new technologies [19] - The company aims to leverage AI to enhance personalization and interactivity, positioning itself as a leader in the evolving audio landscape [21][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued healthy MAU and subscriber growth throughout 2026, with expectations for improved revenue and gross margin [18][34] - The management highlighted the importance of adapting to macro changes and capturing opportunities presented by technological advancements [39][40] Other Important Information - The company repurchased $433 million worth of shares in Q4 2025 and plans to continue opportunistic capital returns [33] - The company has been investing in AI technologies to enhance user experiences and streamline internal processes, positioning itself for future growth [23][29] Q&A Session Summary Question: How is Spotify planning to use AI tools and applications for new and evolving product offers? - Management emphasized that AI will enhance user interaction and personalization, positioning Spotify as a leading intelligent media platform [39][40] Question: What are the drivers of Gross Margin expansion in 2026? - Management indicated that price increases and improvements in the advertising business will contribute to gross margin growth [44][46] Question: Can you provide a progress report on your ad tech platform? - Management reported record levels of advertisers on the platform, indicating positive progress in ad revenue growth [48][49] Question: How do you see the price to value relationship of the service relative to competitors? - Management noted that churn remains low following recent price increases, and they strive to create more value than price [66][67] Question: What's changed at Spotify following Daniel stepping back from the CEO role? - Management highlighted a focus on synchronization and planning, with a new structure for decision-making to enhance operational efficiency [68][69]

Spotify Technology (NYSE:SPOT) Q4 2025 Earnings call February 10, 2026 08:00 AM ET Speaker5Good day, and welcome to Spotify's fourth quarter 2025 earnings call and webcast. All participants are in a listen-only mode. If you require operator assistance at any time, please press star zero. As a reminder, this conference call is being recorded. I would now like to turn the call over to Bryan Goldberg, Head of Investor Relations. Thank you. Please go ahead.Speaker1Thanks, operator, and welcome to Spotify's four ...

Core Insights - Spotify experienced a peak in user numbers in the last quarter, attributed to its year-end "Wrapped" campaign and enhancements to its free tier [1] - The company reported a record 38 million new users in Q4, bringing total monthly active users to 751 million, an 11% increase year-over-year [1] - Paying subscribers rose by 10% to 290 million during the same quarter [1] User Engagement - The "Wrapped" campaign engaged over 300 million users and generated 630 million shares on social media across 56 languages [2] Financial Performance - Revenue reached €4.53 billion ($5.39 billion), marking a 7% increase from the previous year, driven by an 8% rise in subscription revenue [3] - The ad-supported segment saw a 4% decline in revenue to €518 million ($616.6 million) [3] - Gross margin improved by 83 basis points to a record high of 33.1%, reflecting increased ad sales for podcasts and music [3] Leadership Transition - The solid performance coincides with the transition to new co-CEOs Gustav Söderström and Alex Norström, who are now managing a significantly expanded business [4] Business Expansion - Spotify has diversified from being a music streaming service to include podcasts, audiobooks, and physical bookstores, along with features like music videos and video podcasts [5] - The company has enhanced its retention strategy by introducing social features such as group chats and song-sharing capabilities [5] Technological Innovations - New AI features have been introduced, including an AI DJ and AI-generated playlists, allowing users to customize their listening experience by excluding certain tracks [6] Market Strategy - Spotify has focused on profitability by increasing subscription prices in the U.S. and Europe and enhancing its free tier to attract users from competitors like YouTube Music and Amazon Music [8] - The company anticipates reaching 759 million users and 293 million paying subscribers in the current quarter [8]

Core Insights - Spotify's ad-supported user base reached 476 million, exceeding the expected 468.9 million [1] - Monthly active users increased by 11% year-over-year to 751 million, surpassing the 744.7 million forecast [1] - Paid subscribers rose by 10% year-over-year to 290 million [1] User Growth and Features - Growth in user additions was attributed to expansion in Latin America, Europe, and improvements in the mobile free tier [1] - The company launched audiobooks in new markets and introduced music videos for premium users, along with enhanced AI tools in Q4 [2] Financial Performance - Net income increased to 1.17 billion euros, or 4.43 euros per share, compared to 367 million euros, or 1.76 euros per share, in the previous year [3] - For the current quarter, Spotify anticipates revenue of 4.5 billion euros, which is below the 4.58 billion euros estimate, impacted by a 670 basis point headwind from foreign exchange rates [4] Future Projections - Spotify expects to grow monthly active users by 8 million to reach 759 million, exceeding the 752.4 million estimate [4] - Total premium subscribers are projected to reach 293 million [4]

Market Overview - Futures are trading lower after a strong performance on Monday, with major indices showing continued strength from the previous Friday [2] - The Dow Jones closed at 50,135, the S&P 500 at 6,964 (up 0.47%), and the Nasdaq at 23,238 (up 0.90%) [2] - The Russell 2000 finished at 2,689, up 0.72%, driven by short covering and bargain hunting [2] Treasury Bonds - Treasury yields were modestly lower, with the 30-year bond closing at 4.85% and the 10-year note at 4.20% [3] - Traders are awaiting delayed economic data, including the January non-farm payrolls and consumer price index reports [3] Oil and Gas - Oil prices increased as hedge funds raised their exposure amid geopolitical concerns in Iran [4] - Brent Crude rose 1.56% to $69.11, while West Texas Intermediate increased 1.38% to $64.43 [4] - Natural gas prices fell 8.18% to $3.14, reflecting ongoing volatility [4] Gold and Precious Metals - Gold prices continued to rally, closing up 1.86% at $5,058, recovering above the $5,000 mark [5] - Silver also saw significant gains, closing at $83.25, up 7.15% [5] - Demand for safe-haven assets and central banks' appetite for precious metals are influencing market dynamics [5] Market Sentiment - The recent rally in the stock market may face challenges as delayed economic data is expected to impact sentiment [6] - Investors are advised to remain vigilant as the market may run out of momentum soon [6]