Stifel: What To Expect From Spotify's First Earnings Report As A Public Company

Streaming music provider Spotify Technology SA SPOT is scheduled to report its first-ever earnings as a public company after Wednesday's market close.

The Analyst

Stifel's John Egbert maintains a Buy rating on Spotify with an unchanged $180 price target.

The Thesis

Spotify is modeling to report the following metrics, Egbert said in a Tuesday note:

75 million premium subscribers.
Total monthly active users of 169.3 million.
Total revenue of $1.36 billion in the U.S. dollar equivalent.
$317.6 million in gross profit.
A 23.2-percent gross profit margin.
An operating loss of $87.5 million.

Investors should pay attention to whether the following questions are answered during the earnings call, Egbert said:

How will adding increased functionality for free users impact conversion to a paid subscription?
Does increased functionality for free users hurt or help gross margins given the ad-supported model?
Were there any notable subscriber trends per region in the quarter?
What impact to Spotify's business is being felt from increased competition?
Will bi-annual free trials grow in-line with gross subscriber additions?
When will average revenue per user headwinds ease?
What is the impact to Spotify's business from the acquisition of Loudr?
What is management's opinion on the Music Modernization Act?
Any commentary on Spotify's rumored in-car listening device?