Yahoo News 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.
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Monthly active users exceeded guidance, growing 23% year-on-year to 602 million, adding 28 million net new users. Premium subscribers rose 15% year-on-year to 236 million, adding 10 million net. Advertising-supported rose from 295 from 379 million.
The Stockholm, Sweden-based 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 TO COME…
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