Spotify Earnings Q3 2023


The Stock Soared around 10% due to the First Quarterly Profits from a boost in Paid Subscribers

Spotify for Q3FY23 reported its monthly active users of 574 million up by 26% YoY and 2 million ahead of the company's guidance marking the second largest Q3 net addition performance in history. (Source: Spotify)

The Swedish music streaming giant reported a 16% growth in in YoY subscriber base to 226 million for Q3 with Net additions of 23 million representing the second largest Q3 net addition performance for the company. (Source: Spotify)

Spotify reported a third-quarter profit of €65 million, bolstered by increased prices for its streaming services, the surge in subscribers across all regions, reduced marketing expenses, and lower personnel-related costs. (Source: Spotify)

The company's Profit growth was also led by an improvement in their gross margins of 26.4% in Q3, up by 166 bps YoY. The growth was led by improved podcast trends and marketplace activity growth. (Source: Spotify)

Earlier in the year, Spotify underwent a strategic shift in its podcasting division, resulting in the laying-off of 6% of its employees earlier this year. (Source: Reuters). Also, the company has raised prices for its premium plans across several regions increasing the monthly bill for users from $1 to $2, depending on the plan. (Source: Reuters).

The company reported revenue of €3.36 billion grew by 11% YoY reflecting premium revenue growth of 10% YoY and Ad supported revenue growth of 16% YoY. (Source: Spotify)

Spotify earlier this month announced that it will offer its subscribers access to more than 150,000 audiobooks. This service has been already launched in the U.K. and Australia and will debut in the U.S. later this year. (Source: CNBC)

The company expects the profits to continue into Q4FY23 and 2024. It also expects pretty consistent growth in its operating income going forward. They also expect to continue to see margin expansion into next year. (Source: CNBC)

Spotify shares jumped around 10% on October 14th after the company reported its first quarterly profit. (Source: CNBC)


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