Spotify:Quarterly Results/2023 Q4

Management Guidance and Analysts Estimate


Items	Q4 2023^[1]	Y/Y Growth	Management notes
Revenue	€3.7 billion	16.9%	Assumes FX headwind on revenue Y/Y growth of 300 bps
Gross Margin	26.6%		Mainly driven by Y/Y improvement in podcasting, music and Other Cost of Revenue
Total Premium Subscribers	235 million	14.6%
Total MAUs	601 million	22.9%
Operating Income	€(93)- €(108) million^[2] -€100.5 million at the midpoint


Items^[3]	Q4 2023	Y/Y Growth	Q1 2024	Y/Y Growth
Revenue	EUR 3.716 billion	17.4%	EUR 3.637 billion	19.6%
NON-GAAP EPS	EUR -0.15		EUR 0.44
Operating income	EUR -65.90 million		EUR 81.99 million

Items^[4]	Q4 2023	Y/Y Growth	Up Revisions in the last 3 months	Down Revisions in the last 3 months
Revenue	$4.01 billion	16.57%	2	4
EPS	-$0.16	89.63%	1	15

According to Sensor Tower, Spotify's global DAUs spiked by 14% DoD when Spotify 2023 Wrapped went live^[6].

Spotify's US ad spend grew by 10% y/y and 25% MoM in the month of November, Sensor Towers reported.

Source: Sensor Tower

Spotify acknowledged in Q4 2022 earnings that Spotify Wrapped 2022 contributed to their Q4 success. "A notable call out in the quarter was our eighth annual Wrapped campaign, which was a big contributor to our Q4 success, and we broke all sorts of records and reached several all-time highs with an increase of over 30% in user engagements," CEO Daniel EK said. "And we had success with our holiday campaign, which we do every December and Wrapped was a huge success as well, sort of driving traffic to Spotify," former CFO Paul Vogel added^[7].