Spotify forecasts profit above estimates on subscriber growth, price increases

Spotify Forecasts Profit Above Estimates On Subscriber Growth, Price Increases

 A screen displays the logo of Spotify on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., Dec. 4, 2023. Reuters-Yonhap

A display screen shows the emblem of Spotify on the ground on the New York Inventory Trade (NYSE) in New York Metropolis, U.S., Dec. 4, 2023. Reuters-Yonhap

Spotify forecast first-quarter revenue above market estimates on Tuesday because the Swedish audio-streaming big advantages from regular consumer development, value hikes and a cost-cutting drive.

The corporate expects working revenue of 548 million euros ($566.19 million) within the present quarter, above analysts‘ common estimate of 450.6 million euros, in accordance with knowledge compiled by LSEG.

It elevated costs for its service in June final 12 months and has stored a good lid on prices together with advertising and marketing efforts to spice up margins.

On the identical time, its deal with music and podcast video choices has helped entice customers, analysts have stated. Spotify has prolonged a check rollout of its music movies to new markets and unveiled new options that assist enhance user-engagement for content material creators in sure markets.

The corporate forecast month-to-month energetic customers (MAUs) of 678 million within the first quarter, consistent with estimates of 679.4 million. It expects so as to add about 2 million premium subscribers, which might take the whole to 265 million, above Seen Alpha estimates of 263.2 million.

Within the fourth quarter, premium subscribers rose 11 % to 263 million, in contrast with Seen Alpha estimates of 260 million. MAUs rose 12 % to 675 million and exceeded expectations.

Fourth-quarter income rose 16 % to 4.24 billion euros, beating estimates of 4.19 billion euros, pushed by subscriber positive aspects and rising common income per consumer.

Gross revenue jumped 40 % to 1.37 billion euros, in contrast with estimates of 1.32 billion euros. Gross revenue margin elevated to 32.2 % from 31.1 % in prior quarter.

The corporate expects first-quarter income of 4.2 billion euros, barely above estimates of 4.17 billion euros. (Reuters)

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