Spotify:Quarterly Results/2023 Q2: Difference between revisions

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 === Earnings Calls Notes ===
 <ref>https://seekingalpha.com/article/4619554-spotify-technology-s-spot-q2-2023-earnings-call-transcript</ref>
+==== User Growth ====
+* highest MAU growth in Spotify's history
+* Last couple of quarters underspend in marketing and still delivered exceptional user growth and subscriber growth.
+* There's some conservatism baked in subcriber growth due to the price increases.
+* Significantly outperform in Q2. So there's a question of how much, if any, was pull forward from Q3 into Q2, given it was strongest Q2 ever from a subscriber perspective.
+==== Pricing ====
+* Felt the timing was right for price increases because they have already expanded value to price significantly.
+* Price increases won't impact revenue per user much up until the end of Q3, expect it to have a meaningful impact on Q4 and beyond.
+* Most subscribers, they won't see a price increase until September.
+* 50 price increases have been done so far, it has had very little impact on any future growth or anything in terms of churn or conversion rates.
+==== Profitability ====
+* Steps to shrink real estate footprint, rationalize certain areas ofpodcasting business and the exit of Soundtrap Marketplace business will have positive impact on the rate of profitability on a go-forward basis. However, they did result in roughly EUR135 million of net charges in the quarter
+* Hurdle for any new investment is going to be significantly higher going forward.
+* Expect our headcount year-over-year to actually be down in Q3.
+* The biggest impact on ARPU 3% decline on the quarter was the product mix, lookink forward the price increase will moderately help in Q3 , to a FX neutral ARPU kind of flat to down 1% in Q3, then a positive trend after that.
+* Despite the efficiencies done, they are at an all-time high on the number of experiments that are doing and improvements
+==== AI ====
+* Enormous benefits in core machine learning or AI improvements in discovery, in higher engagements and higher retention, which then lowers churn.
+* AI developments can summarize what podcasts are about, and by doing so, it becoming a lot more easier to merchandise new podcast for consumers which drives in turn higher engagement and more growth for creators.
+* Can also become a lot more efficient as a company by leveraging AI.
+==== Advertising ====
+* Some improvement throughout the quarter, the back half the quarter was better than the first half, although not that out of line with our expectations. Expect advertising to be even better in 3Q, which is baked into guidance.
+* SPAN was a big driver of the outperformance, it helped podcast ad revenue
+* ARPUs on the ad side are going to be much lower in the rest of the world than they are in the US, and growth is mostly coming from those regions.
+==== Podcast ====
+* After the innitial investment there is a now more data to doubling down and renewing the things that did work and stop doing the things that didn't work.
+* Continue to see improvements in the margins. The rate of improvement on the on the gross margin is right on track to the expectations given on investor day
+* Seeing podcasters now realizing that they have one video feed on Instagram and YouTube and all these other platforms and uploading more long-termcontent on Spotify at the same time with great success
+* Going for more creators, which probably will lean to more younger consumers all around the world as well.
 == Expectations ==