Spotify Beats Q4 Estimates, Raises Forecasts as User Growth Accelerates

Spotify reports 16% revenue growth, beats Q4 estimates, and raises Q1 guidance, sending shares up nearly 10%

Feb 04, 2025

Summary

Spotify shares jump 9.82% after Q4 earnings beat expectations, with strong user growth and higher premium subscriber forecasts

Spotify (SPOT, Financial) shares soared 9.82% to $603 as of 10:55 a.m. ET Tuesday after the company reported better-than-expected Q4 earnings and raised guidance for the current quarter.

Q4 Earnings & Growth Highlights

Net income: €367 million (€1.76 per share) vs. €70 million loss (€0.36 per share) YoY
Total revenue: €4.24 billion (+16% YoY), beating consensus of €4.16 billion
Total MAUs: 675 million (+12% YoY), exceeding Bloomberg estimate of 664.94 million
Premium subscribers: 263 million (+11% YoY), above estimates of 259.99 million
Average revenue per premium user: €4.85, up 5% YoY

Upbeat Q1 2025 Guidance

Total MAUs: 678 million, surpassing Bloomberg's estimate of 677.71 million
Revenue forecast: €4.2 billion, ahead of the €4.18 billion consensus
Gross margin: 31.5% vs. 31.2% expected
Premium subscribers: 265 million, exceeding expectations of 259.27 million
Operating income: €548 million, beating analysts' projection of €460.1 million

Spotify's strong user and revenue growth boosted investor confidence, driving shares higher as the company continues expanding its premium subscriber base and improving profitability.

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I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure

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