Spotify Technology SA SPOT stock climbed after it reported fourth-quarter FY23 revenue growth of 16% year-on-year to €3.67 billion ($3.95 billion), missing the consensus of $4.06 billion.
EPS loss of €(0.36) or $(0.39) missed the consensus loss of $(0.14).
Premium Revenue grew 17% Y/Y to €3.17 billion, helped by subscriber additions.
Total MAUs (Monthly Active Users) rose 23% Y/Y to 602 million. Ad-supported MAUs grew a whopping 28% y/y to 379 million. Premium Subscribers grew 15% Y/Y to 236 million.
Within Premium, the average revenue per user (ARPU) rose by 1% Y/Y at €4.60. Ad-Supported revenue rose 12% to €501 million.
Margins: The gross margin improved by 140 bps to 26.7%, reflecting improved podcast and music profitability. The Premium gross margin was 29.1%, up 45 bps Y/Y, reflecting Marketplace growth.
Ad-supported gross margin was 11.6%, up 645 bps Y/Y, reflecting improving podcast profitability. Operating loss was €(75) million.
The adjusted operating income was €68 million with a margin of 2.1 %.
Spotify held €4.3 billion in cash and equivalents and generated €396 million in free cash flow, and €397 million in operating cash flow.
Outlook: Spotify sees first-quarter revenue of €3.6 billion (consensus $3.93 billion). It expects total MAUs of 618 million.
Price action: SPOT shares traded higher by 5.44% at $235.40 premarket on the last check Tuesday.
Spotify Photo by esthermm on Shutterstock
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
