Spotify's Q2 Earnings: Revenue Grows 20% As Premium Revenue Surge Drives Higher Average Revenue Per User
Portfolio Pulse from Anusuya Lahiri
Spotify Technology SA (NYSE:SPOT) reported a 20% year-on-year revenue growth for Q2 2024, reaching $4.099 billion, though it missed the analyst consensus estimate of $4.170 billion. EPS of $1.43 beat the estimate of $1.15. Premium revenue grew 21% year-over-year, driven by subscriber additions and ARPU increases. Total MAUs rose 14% to 626 million, with Premium subscribers at 246 million. Gross margin improved to 29.2%, and the company held 5.4 billion euros in cash. Spotify expects Q3 revenue of $4.31 billion, below the consensus of $4.37 billion. SPOT shares traded higher by 13.10% premarket.
July 23, 2024 | 11:24 am
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Spotify reported a 20% YoY revenue growth for Q2 2024, reaching $4.099 billion, missing the analyst consensus estimate of $4.170 billion. EPS of $1.43 beat the estimate of $1.15. Premium revenue grew 21% YoY, driven by subscriber additions and ARPU increases. Total MAUs rose 14% to 626 million, with Premium subscribers at 246 million. Gross margin improved to 29.2%. Spotify expects Q3 revenue of $4.31 billion, below the consensus of $4.37 billion. SPOT shares traded higher by 13.10% premarket.
Spotify's strong revenue growth and EPS beat are positive indicators, despite missing revenue estimates. The significant increase in Premium revenue and MAUs, along with improved gross margins, are likely driving the positive market reaction. However, the Q3 revenue outlook being below consensus may temper some of the enthusiasm.
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