Spotify (SPOT) Tops Q4 EPS by 18c, Offers Outlook

Spotify (NYSE: SPOT) reported Q4 EPS of ($0.21), $0.18 better than the analyst estimate of ($0.39). Revenue for the quarter came in at $2.69 billion versus the consensus estimate of $2.65 billion.

• MAUs grew 18% Y/Y to 406 million in Q4, near the top end of guidance range.

Q1 2022 OUTLOOK:

We are re-aligning our current guidance practice to better reflect how we run the business. Since the vast majority of our initiatives are multi-year in nature and measured as such, we no longer plan to issue annual guidance. However, we intend to utilize quarterly guidance as checkpoints against our progress and will provide additional thoughts and perspective around 2022 expectations on our earnings call. As for quarterly guidance, going forward we will simplify our approach by providing a single estimate for each metric instead of a range of outcomes. Additionally, we plan to host an investor day later in 2022 to offer an update on the strength of our platform and our advancement towards our long-term operating goals.

The following forward-looking statements reflect Spotify’s expectations for Q1 2022 as of February 2, 2022 and are subject to substantial uncertainty. Given the extraordinary operating circumstances we currently face with respect to the impact of COVID-19, there is a greater likelihood of variances with respect to such point estimates than in typical quarters.

• Total MAUs: 418 million
• Total Premium Subscribers: 183 million
• Total Revenue: €2.60 billion

Assumes approximately 360 bps tailwind to growth Y/Y due to movements in foreign exchange rates

• Gross Margin: 25.0%
• Operating Profit/Loss: €(67) million

For earnings history and earnings-related data on Spotify (SPOT) click here.

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