The earnings call reflected a strong overall performance in terms of user growth, financial metrics, and successful product innovations, notably in video and the Wrapped campaign. However, challenges remain in advertising revenue growth and seasonal expectations for Q1 2025. Despite these lowlights, the overarching sentiment is positive with continued confidence in future growth and profitability.

Company Guidance

During Spotify's Fourth Quarter 2024 earnings call, the company highlighted several key metrics and guidance for the future. The quarter was marked by strong performance, with record highs in various areas including Monthly Active User (MAU) additions, subscriber additions, revenue, gross margin, operating income, and free cash flow. Spotify closed out the year with 675 million MAUs and 263 million subscribers, reflecting a significant increase of 35 million and 11 million respectively over the quarter. Revenue grew by 17% year-on-year to EUR4.2 billion, while gross margin reached a record 32.2%. Operating income and free cash flow were EUR477 million and EUR877 million, respectively. Looking ahead, Spotify anticipates continued growth in 2025, with a focus on accelerated execution, introducing new music experiences, and maintaining resource discipline. For the first quarter of 2025, the company forecasts 678 million MAUs, 265 million subscribers, and EUR4.2 billion in revenue, with a gross margin of 31.5% and operating income of EUR548 million.

Record-Breaking MAU and Subscriber Additions

Spotify achieved its highest Q4 ever for Monthly Active Users (MAU) additions and the second highest of all time, with MAU growing by 35 million to 675 million in total. The company also added 11 million net subscribers, marking a record tied with Q4 2019.

Strong Financial Performance and Profitability

Spotify set quarterly record highs for revenue, gross margin, operating income, and free cash flow, closing out its first full year of profitability. Total revenue was EUR4.2 billion, growing 17% year-on-year on a constant currency basis.

Successful Wrapped Campaign

The Wrapped campaign engaged over 245 million users, surpassing the previous year's record within the first seven days, and contributed significantly to the Q4 performance.

Video Podcast Expansion

Spotify launched a new video offering, growing its video podcast content to more than 330,000 globally, with over 270 million users streaming video podcasts.

Improvement in Gross Margin

Gross margin for Q4 came in at a record 32.2%, surpassing guidance by approximately 40 basis points, with the full year gross margin at 30.1%, representing a 450 basis point improvement over 2023.

Strong Cash Flow and Financial Position

Free cash flow was a record EUR877 million for the quarter, with Spotify ending the year with EUR7.5 billion in cash and short-term investments.

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Spotify Technology SA (SPOT) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

Daily Earnings Calendar >

SPOT Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Apr 23, 2025	2025 (Q1)	2.23 / -	0.97	―	―	―
Feb 04, 2025	2024 (Q4)	2.08 / 1.84	-0.377	588.89% (+2.22)
Nov 12, 2024	2024 (Q3)	1.77 / 1.52	0.345	339.39% (+1.17)
Jul 23, 2024	2024 (Q2)	1.10 / 1.39	-1.622	185.81% (+3.01)
Apr 23, 2024	2024 (Q1)	0.65 / 1.02	-1.214	183.62% (+2.23)
Feb 06, 2024	2023 (Q4)	-0.39 / -0.38	-1.465	74.29% (+1.09)
Oct 24, 2023	2023 (Q3)	-0.23 / 0.35	-1.036	133.33% (+1.38)
Jul 25, 2023	2023 (Q2)	-0.66 / -1.62	-0.89	-82.35% (-0.73)
Apr 25, 2023	2023 (Q1)	-0.90 / -1.21	0.22	-652.38% (-1.43)
Jan 31, 2023	2022 (Q4)	-1.34 / -1.47	-0.209	-600.00% (-1.26)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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SPOT Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Feb 04, 2025	$549.08	$621.77	+13.24%
Nov 12, 2024	$410.19	$419.39	+2.24%
Jul 23, 2024	$295.45	$330.79	+11.96%
Apr 23, 2024	$272.24	$303.31	+11.41%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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