Spotify Posts Wider Loss In Q4; Total Revenue Up 18%, MAU Net Additions At 33 Mln

(RTTNews) - Spotify Technology S.A. (SPOT) reported that its fourth quarter Total Monthly Active Users or MAUs grew 20% year-over-year to 489 million, led by Rest of World and Europe. Premium Subscribers grew 14% to 205 million from prior year, aided by promotional intake and household plans.

Fourth quarter revenue grew 18%, or 12% in constant currency. Operating expense growth was 44%, or 36% in constant currency. The company said this was driven primarily by higher personnel costs related to headcount growth and higher advertising expenses.

Looking forward, the company anticipates a meaningful improvement in operating expense ratios and operating result in 2023 and beyond.

Fourth quarter net loss attributable to owners of the parent was 270 million euros compared to a loss of 39 million euros, previous year. Loss per share was 1.40 euros compared to a loss of 0.21 euros.

Gross margin was at 25.3%, down 118 bps. Premium gross margin was 28.6%, down 56 bps from last year.

Revenue increased to 3.17 billion euros from 2.69 billion euros, last year. Premium revenue grew 18% to 2.7 billion euros.

For the first quarter, the company expects: operating loss of 194 million euros, gross margin of 24.9%; and total revenue of 3.1 billion euros. Total MAUs are estimated to be 500 million, which implies the addition of approximately 11 million net new MAUs in the quarter.

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