In the fourth quarter, Spotify posted a loss of 36 cents per share on revenue of €3.67 billion ($3.94 billion). This outperformed analyst predictions compiled by FactSet, which anticipated a loss of 40 cents per share on revenue of $3.99 billion.
In a statement, the company expressed their confidence in their ability to deliver improved growth and profitability, particularly as revenue and profitability trends are both moving positively heading into 2024.
By implementing strategic price increases in the past year, along with significant rounds of layoffs and adjustments to podcast investments, Spotify is inching closer to its goal of greater profitability. In fact, the company’s gross margin rose to 26.7% in the fourth quarter, representing a year-over-year increase of 1.4 percentage points. This growth was primarily driven by improved profitability in both podcasts and music. The operating loss reported can largely be attributed to severance payments.
As a result of this news, Spotify’s stock experienced a premarket trading increase of 5.4%. It appears that shareholders are pleased with the positive momentum and future outlook of the company.
TechBerry
Happy Galaxy
Forex Cyborg
Forex Fury
FXgoodway