Spotify Beats Q4 Estimates, Raises Forecasts as User Growth Accelerates

GuruFocus.com
02-05

Spotify (NYSE:SPOT) shares soared 9.82% to $603 as of 10:55 a.m. ET Tuesday after the company reported better-than-expected Q4 earnings and raised guidance for the current quarter.

Q4 Earnings & Growth Highlights

  • Net income: 367 million (1.76 per share) vs. 70 million loss (0.36 per share) YoY
  • Total revenue: 4.24 billion (+16% YoY), beating consensus of 4.16 billion
  • Total MAUs: 675 million (+12% YoY), exceeding Bloomberg estimate of 664.94 million
  • Premium subscribers: 263 million (+11% YoY), above estimates of 259.99 million
  • Average revenue per premium user: 4.85, up 5% YoY

Upbeat Q1 2025 Guidance

  • Total MAUs: 678 million, surpassing Bloomberg's estimate of 677.71 million
  • Revenue forecast: 4.2 billion, ahead of the 4.18 billion consensus
  • Gross margin: 31.5% vs. 31.2% expected
  • Premium subscribers: 265 million, exceeding expectations of 259.27 million
  • Operating income: 548 million, beating analysts' projection of 460.1 million

    Spotify's strong user and revenue growth boosted investor confidence, driving shares higher as the company continues expanding its premium subscriber base and improving profitability.

    This article first appeared on GuruFocus.

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