- Spotify Technology SA SPOT reported first-quarter FY23 revenue growth of 14% year-on-year to €3.17 billion. Premium Revenue grew 18% Y/Y to €3.04 billion, helped by subscriber additions.
- Total MAUs (Monthly Active Users) rose 22% Y/Y to 515 million. Premium Subscribers grew 15% Y/Y to 210 million.
- Within Premium, the average revenue per user (ARPU) declined by 1% Y/Y at €4.32. Ad-Supported revenue rose 17% to €329 million.
- Margins: The gross margin remained intact at 25.2%, reflecting continued growth in Marketplace activity and improvement in podcast profitability.
- Premium gross margin grew by 23 bps to 28.6%, reflecting improvement in Premium profitability. Ad-Supported gross margin declined by 162 bps to (3.0)%, reflecting improving Ad-supported music and podcast profitability.
- Operating income loss was €(156) million versus €(6) million a year ago.
- Loss per share of €(1.16) compared to €0.21 a year ago.
- Spotify held €3.5 billion in cash and equivalents and generated €56 million in free cash flow.
- Outlook: Spotify sees Q2 revenue of €3.2 billion, which includes a 300 bps hit from forex. It expects total MAU's of 530 million.
- Price action: SPOT shares traded higher by 3.75% at $136.37 premarket on the last check Tuesday.
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