Spotify Technology SA Reports Third Quarter 2024 Financial Results

Spotify Technology S.A. Reports Third Quarter 2024 Financial Results

Spotify Technology S.A. (NYSE: SPOT) has announced its financial results for the third quarter of 2024.

Key Financial Metrics:

Spotify's financial performance in Q3 2024 shows a robust year-over-year revenue growth of 15.4% and a quarter-over-quarter increase of 6.1%. The earnings per share also exceeded expectations, reflecting strong operational efficiency and cost management.

Revenue Performance by Segment:

The Premium segment saw a 12% increase year-over-year, slightly below the previous guidance, while the Ad-Supported segment outperformed expectations with a 20% growth, indicating strong demand for Spotify's advertising solutions.

Operational Data:

Spotify reported 640 million monthly active users, surpassing the consensus estimate, and maintained a strong base of 252 million premium subscribers.

Comments from Company Officers: Daniel Ek, Founder and CEO, highlighted the company's strategic focus on expanding its user base and enhancing its advertising capabilities, which have contributed to the strong financial results.

Dividends and Share Repurchase Program: No dividends were announced, and there was no mention of a share repurchase program.

Forward Guidance: Spotify provided guidance for Q4 2024, expecting monthly active users to reach 665 million, slightly above the analyst consensus of 660 million. The company forecasts Q4 revenue to be around €4.1 billion, below the consensus estimate of €4.26 billion.

Stock Price Movement: Following the earnings release, Spotify's stock price increased by 2.24%, reflecting investor confidence in the company's growth trajectory and strategic initiatives.

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