Spotify's Q1 2024 Earnings: Record-Breaking Revenue of €3.6 Billion and 615 Million MAUs

Stockholm, Sweden Sweden
Gross margin came in stronger than anticipated at 27.6%.
In Q1 2024, Spotify reported revenue of €3.6 billion, a 20% YoY increase.
MAUs grew by 19% YoY to reach a record high of 615 million.
Operating income was €168 million and net income was €197 million or EPS of €0.97.
Subscribers count increased by 14% YoY to hit 239 million.
Spotify's Q1 2024 Earnings: Record-Breaking Revenue of €3.6 Billion and 615 Million MAUs

In the first quarter of 2024, Spotify reported impressive earnings results that surpassed expectations on both the revenue and profitability fronts. The music streaming giant announced a total revenue of €3.6 billion, representing a 20% year-over-year increase. This growth was driven by an expansion in both its Monthly Active Users (MAUs) and Subscribers base.

The number of MAUs grew by 19% Y/Y to reach a record high of 615 million, while the Subscribers count increased by 14% Y/Y to hit 239 million. These figures demonstrate Spotify's continued growth and its ability to attract new users.

Moreover, the company reported an operating income of €168 million and a net income of €197 million or earnings per share (EPS) of €0.97. This marked a significant improvement compared to the prior-year period when Spotify reported an operating loss and a net loss.

Spotify's gross margin also came in stronger than anticipated, reaching 27.6%. The company expects this figure to tick up further to 28.1% in the second quarter.

Daniel Ek, Spotify's co-founder and CEO, expressed confidence in the company's ability to reach its ambitious plans for the year despite focusing on strong revenue growth and margin expansion.

Additionally, Rogan's podcast will now be available on various platforms such as Apple Podcasts, Amazon Music, and YouTube for the first time in years. This move is expected to broaden Spotify's reach and attract new users.

Despite these positive developments, it is important to note that there are biases present in some of the sources reporting on these earnings. For instance, one source failed to mention Spotify's record quarterly profit and the beat on gross margin guidance in their article.


Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image
Article Image

Confidence

95%

Doubts
  • It is unclear if all sources reporting on these earnings are free from biases.
  • The article does not provide information on Spotify's operating expenses for Q1 2024.

Sources

95%

The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
(Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

Spotify turns a profit as earnings and revenue beat estimates

Yahoo Finance Alexandra Canal Wednesday, 24 April 2024 09:09
  • Unique Points
    • Spotify reported fiscal first quarter earnings that beat expectations on both the top and bottom lines
    • Operating income was 168 million euros ($179 million) compared with a loss of 156 million euros in the prior-year period
    • Net income was 197 million euros ($210 million) or earnings of 0.97 euros per share
    • Gross margins came in stronger than expected at 27.6% and are expected to tick up to 28.1% in Q2
    • Spotify pledged to improve profitability beginning in 2023 on a gross margin and operating income basis
    • Rogan’s podcast will be available on additional services like Apple Podcasts, Amazon Music, and YouTube for the first time in years
  • Accuracy
    No Contradictions at Time Of Publication
  • Deception (100%)
    None Found At Time Of Publication
  • Fallacies (85%)
    The author makes several appeals to authority by mentioning Wall Street consensus expectations and analysts' bullishness on Spotify. She also uses inflammatory rhetoric when describing the audio giant's spending on podcasts as 'splashy A-list deals and $400 million-plus studio acquisitions.' However, no formal fallacies or dichotomous depictions were found.
    • ][The audio giant reported operating income of 168 million euros ($179 million), compared with a loss of 156 million euros in the prior-year period.][This was below company guidance of 180 million euros as social charges came in higher than expected, ‘driven by share price appreciation during the quarter’, according to Spotify.][][The stock moved as much as 15% higher in early trading on Tuesday following the results.][][Analysts have been bullish on Spotify after the audio giant pledged to improve its profitability.][Spotify spent $1 billion pushing into the podcast market over the past four years with splashy A-list deals and $400 million-plus studio acquisitions.]
  • Bias (95%)
    The author does not demonstrate any clear political, religious, ideological, or monetary bias in the article. However, there is a disproportionate number of quotes that reflect positively on Spotify's profitability and business decisions. The author also uses language that portrays Spotify in a positive light when describing its recent initiatives to boost profits and improve margins.
    • Gross margins came in stronger than expected at 27.6%, beating company guidance of 26.4%.
      • Spotify expects margins to tick up to 28.1% in the second quarter, primarily driven by year-over-year improvements in music and podcasting.
        • Spotify reported operating income of 168 million euros ($179 million), compared with a loss of 156 million euros in the prior-year period.
          • The report also said Spotify plans to introduce a cheaper option that does not include audiobooks.
            • The stock moved as much as 15% higher in early trading on Tuesday following the results.
            • Site Conflicts Of Interest (100%)
              None Found At Time Of Publication
            • Author Conflicts Of Interest (100%)
              None Found At Time Of Publication

            100%

            The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
            (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

            A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

            Spotify Reports First Quarter 2024 Earnings — Spotify

            Spotify Technology S.A. Unknown Stacy.Goldrick@groupsjr.com Tuesday, 23 April 2024 10:00
            • Unique Points
              • Spotify announced first quarter 2024 earnings
              • Monthly Active Users grew 19% Y/Y to 615 million
              • Subscribers increased 14% Y/Y to 239 million
              • Total Revenue was up 20% Y/Y to €3.6 billion
              • Gross Margin reached 27.6%
            • Accuracy
              No Contradictions at Time Of Publication
            • Deception (100%)
              None Found At Time Of Publication
            • Fallacies (100%)
              None Found At Time Of Publication
            • Bias (100%)
              None Found At Time Of Publication
            • Site Conflicts Of Interest (100%)
              None Found At Time Of Publication
            • Author Conflicts Of Interest (100%)
              None Found At Time Of Publication

            95%

            The overall score is a weighted number that takes into account conflict of interest, bias, deception and other practices that undermine the credibility of the source. It is calculated as:
            (Site Conflicts Of Interest + Author Conflicts Of Interest) / 2.0 * 0.2 + ArticleBiasScore * 0.20 + UniquePointsScore * 0.05 + DeceptionScore * 0.20 + ReadabilityScore * 0.05 + FallacyScore * 0.20

            A score that takes into consideration the content for flow, interruptions with ads, and overt search engine optimization techniques that makes the content hard to understand

            Spotify reports record quarterly profit after a year marked by deep layoffs and activist attention

            CNBC News Rohan Goswami Tuesday, 23 April 2024 13:13
            • Unique Points
              • Spotify reported record quarterly profit in Q1 2023 that was not mentioned in other articles
              • The company beat guidance on quarterly gross margin with a figure of 28.1% which is not mentioned in other articles
            • Accuracy
              • Spotify reported record quarterly profit in Q1 2023
              • Net income was 197 million euros ($210 million) or earnings of 0.97 euros per share
              • Revenue: 3.64 billion euros
              • Total monthly active users were 615 million, a 19% improvement compared with the year-ago period
            • Deception (100%)
              None Found At Time Of Publication
            • Fallacies (85%)
              The article contains an appeal to authority and a dichotomous depiction. It mentions the company's growth and its cost-cutting measures in a positive light after an activist investor called for spending rationalization. The author also presents the company's financial performance as a record quarterly profit, without considering potential drawbacks or alternative interpretations.
              • . . .after a year of deep cost cutting and streamlining.
              • Spotify went into cost-cutting mode last year, laying off more than a quarter of its headcount.
              • Many of the changes the company made in the last 12 months came after Mason Morfit’s ValueAct disclosed a stake in the company in February 2023 and publicly called for spending rationalization.
            • Bias (100%)
              None Found At Time Of Publication
            • Site Conflicts Of Interest (100%)
              None Found At Time Of Publication
            • Author Conflicts Of Interest (100%)
              None Found At Time Of Publication