Q1 24 EPS
$0.97
BEAT +40.58%
Est. $0.69
Q1 24 Revenue
$3.64B
MISS 5.44%
Est. $3.85B
vs S&P Since Q1 24
+17.9%
BEATING MARKET
SPOT +63.5% vs S&P +45.6%
Market Reaction
Did SPOT Beat Earnings? Q1 2024 Results
Spotify Technology delivered a profitability-driven quarter in Q1 2024, posting earnings per share of $0.97 against a consensus estimate of $0.69, a beat of 40.58%, even as revenue of $3.64 billion came in 5.44% below analyst expectations despite gro… Read more Spotify Technology delivered a profitability-driven quarter in Q1 2024, posting earnings per share of $0.97 against a consensus estimate of $0.69, a beat of 40.58%, even as revenue of $3.64 billion came in 5.44% below analyst expectations despite growing 19.5% year-over-year. The central story was a sharp swing to profitability, with net income reaching $197 million compared to a net loss of $225 million in the same period a year ago, a turnaround fueled largely by aggressive cost discipline following the company's December 2023 workforce reduction of roughly 17%. Consolidated gross margin expanded from 25% to 28%, with research and development, sales and marketing, and general and administrative expenses all declining double digits year-over-year on lower headcount costs. Monthly active users climbed 19% to 615 million, while Premium subscribers grew 14% to 239 million, underscoring that Spotify's audience expansion remains intact even as the company sharpens its focus on margin improvement. Free cash flow rose to $207 million, up from $57 million a year ago.
Key Takeaways
- • 14% year-over-year growth in Premium Subscribers to 239 million
- • 19% year-over-year growth in MAUs to 615 million
- • Premium ARPU increase of 5% to €4.55, driven by price increases
- • Cost reduction from December 2023 workforce reduction of approximately 17%
- • Consolidated gross margin expansion from 25% to 28%
- • Revenue growth outpacing royalty cost growth in both segments
- • Growth in music advertising impressions sold and CPM
SPOT YoY Financials
Q1 2024 vs Q1 2023, source: SEC Filings
SPOT Revenue by Segment
With YoY comparisons, source: SEC Filings
SPOT Revenue by Geography
With YoY comparisons, source: SEC Filings
SPOT Earnings Trends
SPOT vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
SPOT EPS Trend
Earnings per share: estimate vs actual
SPOT Revenue Trend
Quarterly revenue: estimate vs actual
SPOT Quarterly Results
6 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $2.95 | $3.45 | +16.93% | $4.53B | +0.24% |
| Q4 25 BEAT FY | $2.85 | $4.43 | +55.57% | $4.53B | +0.20% |
| FY Full Year | — | $10.51 | — | $17.19B | — |
| Q3 25 BEAT | $2.14 | $3.28 | +53.41% | $4.27B | +0.94% |
| Q2 25 MISS | $2.05 | $-0.42 | -120.45% | $4.19B | -1.80% |
| Q1 25 MISS | $2.33 | $1.07 | -54.02% | $4.19B | -0.24% |
| Q1 24 BEAT | $0.69 | $0.97 | +40.58% | $3.64B | -5.44% |