Spotify Technology SA (NYSE: SPOT) stock rose over 0.05% on 4th Feb, 2021 (as of 10:01 am GMT-5; Source: Google finance) post decent performance. The MAUs increased 27% to 345 million to top expectations of 343.8 million. Gross margin of 26.5% was above the top end of the company’s guidance range, while free cash flow fell 56% to EUR74 million but beat the FactSet consensus of EUR46.5 million.
The company’s net losses widened to EUR125 million ($150.3 million), from EUR101 million in the year ago period. The company provided subdued forecast for the current quarter.
Moreover, the paid subscriber numbers rose to 155 million in the quarter, exceeding the top end of guidance. Spotify added that it gained a net 10 million premium subscribers over the last three months of the year, with a record 30mln net signings during 2020. Average revenue per user fell 8% to €4.26 year-on-year in the final quarter but usage rose with core regions in Europe and the US seeing consumption growth resume. Podcast consumption in the fourth quarter was nearly double this time a year ago, with the exclusive Joe Rogan Experience number one in 17 countries. Ad revenues were affected by the impact of coronavirus but picked up steadily from the second quarter and with growth in subscriptions, revenues rose 10% quarter-on-quarter to €2.17bn in the three months to end December and by 17% year-on-year.
SPOT in the fourth quarter of FY 20 has reported the adjusted earnings per share of EUR0.66, beating the analysts’ estimates for the adjusted earnings per share of EUR0.51, according to the FactSet consensus. The company had reported the adjusted revenue growth of 9.8 percent to EUR2.17 billion ($2.61 billion) in the fourth quarter of FY 20, beating the analysts’ estimates for revenue of EUR2.14 billion.
For the first quarter, Spotify expects operating loss in a range of 28 million euros to 78 million euros, total revenue of 1.99 billion euros to 2.19 billion euros, total monthly active users of 354 million to 364 million, and total premium subscribers of 155 million to 158 million. For the first quarter, the company expects revenue to be in the range of EUR1.99 billion to EUR2.19 billion, just shy of the FactSet consensus of EUR2.20 billion.
For fiscal year 2021, the company projects operating loss in a range of 200 million euros to 300 million euros, total revenue of 9.01 billion euros to 9.41 billion euros, total monthly active users of 407 million to 427 million, and total premium subscribers of 172 million to 184 million.