EarningsSpotify reported strong Q2 results, with Premium subscribers and total revenue in line with expectations, while gross margins and profitability came in ahead of guidance.
Financial PerformanceSpotify exceeded its own gross margin guidance by 110bps (29.2%), and operating income guidance by 6% (EUR266mn). The gross margin beat was mainly driven by lower music content costs, while lower headcount costs and marketing spend positively impacted operating income.
Subscription GrowthPremium subscriber net adds came in above expectations at 7mn, ending 2Q at 246mn, which was 1mn above estimates.