Q4 2024 Spotify Technology SA Earnings Call Transcript
Key Points
- Spotify Technology SA (SPOT) reported its highest Q4 ever for Monthly Active User (MAU) additions and record high subscriber additions.
- The company achieved record highs for revenue, gross margin, operating income, and free cash flow, marking its first full year of profitability.
- Innovations in video and audiobooks contributed significantly to growth, with over 330,000 video podcasts globally and 270 million users streaming them.
- The Wrapped campaign saw over 245 million users engage, surpassing previous records and driving significant business growth.
- Spotify Technology SA (SPOT) plans to focus on accelerated execution in 2025, aiming to ship improvements faster and invest in core music experiences.
- Advertising growth was only 6% on a currency-neutral basis, reflecting challenges in marketer spending and brand-related campaigns.
- The company acknowledged being late in transitioning to programmatic advertising, which is expected to take time to scale.
- Q1 2025 is expected to be seasonally weaker, with lower MAU and subscriber intake, impacting revenue and gross margins.
- There is potential variability in gross margins due to targeted investments in core offerings like video and music.
- The company faces competitive dynamics in developing markets, although some competitors have exited, benefiting Spotify.
Good morning, and welcome to Spotify's fourth-quarter 2024 earnings call and webcast. (Operator Instructions) As a reminder, this conference call is being recorded.
I would now like to turn the call over to Bryan Goldberg, Head of Investor Relations. Thank you. Please go ahead.
All right. Thanks, operator, and welcome to Spotify's fourth-quarter 2024 earnings conference call. Joining us today will be Daniel Ek, our CEO; Alex Nordstrom, our Co-President and Chief Business Officer; Gustav Söderström, our Co-President and Chief Product and Technology Officer; and Christian Luiga, our Chief Financial Officer.
We'll start with opening comments from the team. And afterwards, we'll be happy to answer your questions. Questions can to be submitted by going to slido.com, and using the code #SpotifyEarningsQ424. Analysts can ask questions directly into Slido, and all participants can then vote on the questions they find the most relevant. If for some reason, you don't have access to
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investorsâ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
