Spotify Q3 2018 Earnings Metrics on Track But Investors Not Convinced
Get full access to this report and assets
Already a MIDiA client? Login here to view this report.
If you are interested this report, or related reports such as Spotify by the Numbers Trials, Churn and Margin, Spotify Q1 2018 Earnings Steady Course But Is It Enough? and Spotify Q2 2018 Earnings More Needed from Emerging Markets and Ad Supported get in touch today to enquire about a report bundle.
The 20,000 Foot View: Spotify’s 2018 earnings once again showed continued solid progress across most of its performance metrics, with strong progress in many areas. However, weakening investor confidence across US tech stocks as a whole, coupled perhaps unrealistic investor expectations saw Spotify’s share price fall again.
Key Findings
- Spotify reported subscribers in 2018, up on which is in line with million forecast made at the of 2018
- Inactive subscribers up by one million to five million – the first since 2017
- Ad supported active users (MAUs) returned to in 2018, adding five million – the same increase that registered one year previously
- A pattern seasonal cyclicity is emerging for ad supported business
- Subscriber growth largely the same across all but ad supported grew strongly Latin America – up
- Gross margin 2018 fell slightly from the quarter to reach reflecting the six monthly cycle of promotional
- Premium revenue by during 2018 to reach a faster rate than the which subscribers increased during the period, with a gross margin
- Ad supported still just of total revenue adding just million of revenue, to million for premium revenue
- Spotify ARPU down in 2018 across three measures: premium, rights holder and profit
- Churning out from promotional trials drove ARPU in
- Quarterly subscriber was down to the second quarter of decline, down each year-on-year
- Factoring in Spotify added nine million subscribers total, which means that it five million, one more than retained
- Delivering good, growth is good enough for music industry, but not good for investors
Companies and brands mentioned in this report: Spotify