Workflow
Spotify Premium
icon
Search documents
Spotify Price Hikes And New Deals Could Fuel Big Revenue Gains: JP Morgan
Benzinga· 2025-09-30 15:26
Spotify (NYSE:SPOT) is leaning on global price hikes, new label deals, and product upgrades to boost revenue, expand margins, and drive long-term growth.With strong subscriber momentum and fresh content offerings, Spotify is positioning itself for steady revenue acceleration and profitability gains through 2026.JP Morgan analyst Doug Anmuth maintained a Spotify rating of Overweight and raised the price forecast from $740 to $805.Also Read: Spotify Co-Founder Daniel Ek To Step Down, Co-CEOs NamedAnmuth raise ...
Spotify's Subscriber Boom Can't Hide Ad Woes: Analyst
Benzinga· 2025-07-30 23:21
Wall Street analysts rerated Spotify Technology SPOT after the company's quarterly results. The stock gained on Wednesday. Spotify posted a loss of 48 cents per share for the second quarter, a considerable deviation from the analyst consensus estimate of a $2.11 profit. Missed revenue projections compounded this earnings shortfall. Quarterly sales reached $4.75 billion (4.19 billion euros), marking a 10% year-over-year increase but falling short of the analyst projection of $4.84 billion. Also Read: Why Spo ...
Spotify(SPOT) - 2025 Q2 - Earnings Call Presentation
2025-07-29 12:00
Our business delivered healthy results in Q2, led by MAU and Subscriber outperformance, Y/Y profitability improvement and strong Free Cash Flow* generation. The business added 18 million MAU in Q2 vs. guidance for 11 million, while Subscriber net additions of 8 million exceeded guidance by 3 million. Revenue grew 15% Y/Y on a constant currency* basis reflecting Premium and Ad-Supported growth. Outsized currency movements during the quarter impacted reported Revenue by €104 million vs. guidance. Gross Margin ...
Spotify's Q1 Profitability Takes Off: What's the Secret Sauce?
ZACKS· 2025-06-19 15:56
Core Insights - Spotify Technology S.A. achieved significant profitability in Q1 2025, with revenues increasing by 15% year over year, driven by subscriber growth, higher average revenues per user, and growth in sales channels [2][10] - The company experienced a gross margin expansion of 400 basis points to 31.6%, supported by growth in both Premium and Ad-Supported segments [3][10] - Operating expenses were reduced by 3% year over year, contributing to a record-high operating income that surged 203%, resulting in a 750 basis points increase in operating margin [4][5][10] Financial Performance - Spotify's gross margin reached 31.6%, with Premium and Ad-Supported segments seeing increases of 332 and 885 basis points, respectively [3][10] - The operating income growth of 203% was attributed to rising revenues and declining expenses, showcasing effective cost management [5][10] - The return on equity (ROE) for Spotify was 22.5%, which is lower than Apple's 167.2% and Amazon's 24.1%, while the return on invested capital (ROIC) was 24%, surpassing Amazon but lagging behind Apple [7][10] Stock Performance and Valuation - Spotify's stock price increased by 129.2% over the past year, outperforming the industry average of 37.6% and the S&P 500's 10.6% rise [8][10] - The forward price-to-earnings ratio for Spotify is 60.15, which is above the industry average of 39.66, indicating a relatively high valuation [12] - The Zacks Consensus Estimate for Spotify's earnings in 2025 is $9.26 per share, reflecting a year-over-year growth of 55.6% [14]
Buy 5 Stocks That Have Survived April's Tariff-Led Market Mayhem
ZACKS· 2025-04-29 13:15
Core Viewpoint - Wall Street experienced significant volatility in April due to President Trump's tariffs and trade policies, with major stock indexes mostly in negative territory for the month [1][2] Group 1: Stock Performance and Recommendations - A number of corporate giants with market capitalizations over $50 billion have managed to provide positive returns of over 5% month to date despite the turmoil [2] - Five recommended stocks with favorable Zacks Rank include Netflix Inc. (NFLX), Newmont Corp. (NEM), Philip Morris International Inc. (PM), Agnico Eagle Mines Ltd. (AEM), and Spotify Technology S.A. (SPOT) [3] Group 2: Netflix Inc. (NFLX) - Netflix exceeded the Zacks Consensus Estimate for earnings in Q1 2025, maintaining healthy engagement levels despite trade-related challenges [7] - The launch of Netflix's Ad Suite in the U.S. is expected to drive subscriber and average revenue per user (ARPU) growth, with plans for international expansion in Q2 [8] - NFLX's expected revenue and earnings growth rates for the current year are 14% and 27.7%, respectively, with a 1.8% improvement in earnings estimates over the last week [11] Group 3: Newmont Corp. (NEM) - Newmont is advancing its growth projects, including the Ahafo North project, with commercial production expected to start in the second half of 2025 [12][13] - NEM's expected revenue and earnings growth rates for the current year are 0.9% and 16.4%, respectively, with a 2% improvement in earnings estimates over the last week [14] Group 4: Philip Morris International Inc. (PM) - Philip Morris is transitioning to smoke-free products, with strong pricing power and a projected 12-14% growth in smoke-free product sales [15][16] - PM's expected revenue and earnings growth rates for the current year are 7.3% and 13.2%, respectively, with a 2.9% improvement in earnings estimates over the last week [17] Group 5: Agnico Eagle Mines Ltd. (AEM) - Agnico Eagle is focused on production growth through projects like the Kittila expansion and acquisitions, enhancing its market position [18][19] - AEM's expected revenue and earnings growth rates for the current year are 18.9% and 33.3%, respectively, with a 5.8% improvement in earnings estimates over the last week [20] Group 6: Spotify Technology S.A. (SPOT) - Spotify operates through Premium and Ad-Supported segments, with total Monthly Active Users (MAUs) reaching 675 million, surpassing estimates [21][23] - SPOT's expected revenue and earnings growth rates for the current year are 14.8% and 75.8%, respectively, with a 1.6% improvement in earnings estimates over the last week [24]