Entertainment

Spotify Losses Narrow As User Growth Tops Forecasts In Strong Q4; Stock Pops

Spotify‘s losses narrowed and sales rose with user and subscribers additions beating expectations in a strong fourth quarter. The company has shed staff and others costs and sees “revenue and profitability trends both inflecting favorably heading into 2024.”

The stock is up more than 6% in pre-market trading on the numbers.

Monthly active users exceeded guidance, growing 23% year-on-year to 602 million, adding 28 million new users. Premium subscribers rose 15% year-on-year to 236 million, adding 10 million. Ad-supported rose from 295 from 379 million. 

The streaming music giant lost €75 million for the quarter, which was better than our updated guidance. Excluding one-time charges, it has €68 million in adjusted operating income, more than double the third quarter as the business continues momentum towards sustainable growth and profitability. Spotify took a €143 million loss in the fourth quarter after laying off a whopping 17% of its global workforce.

Revenue grew 16% year-on-year to €3.7 billion in line with guidance. Ad-Supported revenue rose 12% with growth across all regions. Music advertising revenue grew double-digits. Podcast advertising revenue grew “in the healthy double-digit range.”

Spotify last week reached a multi-year extension deal with top podcast The Joe Rogan Experience but shifted to a non-exclusive distribution plan for the show.

Free cash flow was €396 million for the quarter.

Execs are hosting a Q&A wth analysts at 8 ET.

MORE

Also Read More: World News | Entertainment News | Celeb News

Source: DLine

Related posts

The Hermès H08 is currently offered in a knotted glass fiber composite situation

News Epistle

Page Hall Road shooting update as Sheffield police issue ‘someone out there knows’ warning

News Epistle

Fox’s ‘Krapopolis’ Debut Audience Was Anything but Krap

News Epistle

Leave a Comment