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Spotify:Quarterly Results/2024 Q2: Difference between revisions
Spotify:Quarterly Results/2024 Q2 (view source)
Revision as of 19:32, 29 October 2024
, 29 October 2024→Earnings Call Summary
(Created page with "Return to: Earnings Season:2023 Q2 | Spotify See also: [https://docs.google.com/spreadsheets/d/1hsho3W72EZ7cXpxAJYeuUWImCVBvW37Tfg5AahlJ8gY/edit?gid=961464411#gid=961464411 Sportify Valuation Model] | Spotify:Quarterly Results/2023 Q3 |Spotify:Quarterly Results/2023 Q2 | Spotify:Quarterly Results | Music Industry == Earnings Call Summary == Link: [https://seekingalpha.com/article/4705795-spotify-...") |
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* CFO Ben Kung pointed out that their price increase in Q3 will have minimal impact on growth (as seen in historical data). | * CFO Ben Kung pointed out that their price increase in Q3 will have minimal impact on growth (as seen in historical data). | ||
* CFO Ben Kung said they expect ARPU to grow sequentially by 100 to 200 basis points in Q3, a slight moderation compared to Q2 as they start lapping last year's price increase. | * CFO Ben Kung said they expect ARPU to grow sequentially by 100 to 200 basis points in Q3, a slight moderation compared to Q2 as they start lapping last year's price increase. | ||
* '''EK signaled in the Q&A that a plan that costs around $5 more than the current premium plan is coming. "The plan here is to offer a much better version of Spotify, so think something that could be something like $5 above the current premium tier, like you include, so it’s probably around a $17 or $18 price point, but sort of a deluxe version of Spotify that has all of the benefits that the normal Spotify version has but a lot more control, a lot higher quality across the board, and some other things that I’m not ready to talk about just yet," he said. "We’re quite excited about it, but it’s early days."''' | |||
=== Subscribers === | === Subscribers === | ||
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* Kung said reduction in cloud and streaming delivery spend contributed to improvement in gross margin and podcast profitability. | * Kung said reduction in cloud and streaming delivery spend contributed to improvement in gross margin and podcast profitability. | ||
* In the Q&A, EK said he cannot comment on the ongoing legal action taken by MLC after Spotify reduced payment made to songwriters. | * In the Q&A, EK said he cannot comment on the ongoing legal action taken by MLC after Spotify reduced payment made to songwriters. | ||
* Kung said in the Q&A that they are confident in their position with regards to the MLC suit. "Look, all I’ll say here is that it’s quite a complex matter that we’ve spent a lot of time scrutinizing, and where we net out has been and continues to be that we’re confident in our position," he said. | |||
* Analyst Doug Anmuth pointed out that Spotify said in the investor day (2022) that it targets to grow revenue by 20% in the next one to three years. | |||
* Another thing that is boosting gross margin is how they are optimizing the payment fees and traffic with their payment service partners. | |||
=== Products === | === Products === | ||