Spotify Technology SA
Premium Revenue grew 10% Y/Y to €2.91 billion, helped by subscriber additions. Total MAUs (Monthly Active Users) rose 26% Y/Y to 574 million. Premium Subscribers grew 16% Y/Y to 226 million. Within Premium, the average revenue per user (ARPU) declined by 6% Y/Y at €4.34. Ad-Supported revenue rose 16% to €447 million.
Margins: The gross margin improved by 170 bps to 26.4%. The Premium gross margin was 29.1%, up 111 bps Y/Y, reflecting Marketplace growth.
Ad-supported adjusted gross margin was 8.3%, up 646 bps Y/Y, reflecting improving podcast profitability. Operating income was €32 million.
EPS of €0.33 or $0.36 beat the consensus loss of $(0.22).
Spotify held €3.8 billion in cash and equivalents and generated €216 million in free cash flow.
Outlook: Spotify sees Q4 revenue of €3.7 billion (consensus $3.91 billion), which includes a 300 bps hit from forex. It expects total MAUs of 601 million.
Price action: SPOT shares traded higher by 2.04% at $157.76 premarket on the last check Tuesday.