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Spotify:Quarterly Results/2023 Q1: Difference between revisions
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* Spotify expands its audiobooks to Canada, making them available in both English and French.<ref>https://techcrunch.com/2023/03/21/spotify-brings-its-new-audiobooks-service-to-canada/</ref> | * Spotify expands its audiobooks to Canada, making them available in both English and French.<ref>https://techcrunch.com/2023/03/21/spotify-brings-its-new-audiobooks-service-to-canada/</ref> | ||
* Spotify introduces a tool for turning radio broadcasts into podcasts.<ref>https://techcrunch.com/2023/04/13/spotify-introduces-new-tech-for-turning-radio-broadcasts-into-podcasts/</ref> | * Spotify introduces a tool for turning radio broadcasts into podcasts.<ref>https://techcrunch.com/2023/04/13/spotify-introduces-new-tech-for-turning-radio-broadcasts-into-podcasts/</ref> | ||
== Analyst Commentary == | |||
=== KeyBanc === | |||
* Spotify disclosed it surpassed ~500M monthly active users (MAUs) in early March, and our Audio Survey and 3P data points reinforce momentum. Coupled with an improving ad market and further cost cuts, we expect slight upside to KPIs on 1Q results and 2Q guidance, and operating loss improving faster than consensus contemplates throughout 2024E.<ref>https://www.marketscreener.com/quote/stock/SPOTIFY-TECHNOLOGY-S-A-42589613/news/KeyBanc-Adjusts-Price-Target-on-Spotify-Technology-to-160-From-140-Maintains-Overweight-Rating-43532371/</ref> | |||
=== Guggenheim === | |||
* Analyst Michael Morris said that there is “an attractive revenue growth runway for the industry that will exceed current consensus estimates. <ref>https://seekingalpha.com/news/3949827-spotify-and-warner-music-upgraded-at-guggenheim-citing-global-music-industry-growth-potential?source=Discord</ref> | |||
=== Redburn === | |||
* Upgrades Spotify to buy while noting that "it sees stronger margins as headwinds from investments decline, publishing royalty increases and foreign exchange wane.<ref>https://www.cnbc.com/2023/03/01/stocks-making-the-biggest-moves-premarket-rivn-kss-nvax.html</ref> | |||
=== Wells Fargo === | |||
* The company's operating expenditure is demonstrating leverage as income losses improve, and it should break-even in Q1 of 2024. Spotify is coming off margin probation and its price increase could boost its margins on music. <ref>https://thefly.com/landingPageNews.php?id=3657006&headline=SPOT-Spotify-upgraded-to-Overweight-from-Equal-Weight-at-Wells-Fargo&utm_source=https://thefly.com/news.php%3fsymbol=SPOT&utm_medium=referral&utm_campaign=referral_traffic</ref> | |||
=== Jefferies === | |||
* Does not see the company's gross margins returning to 2021 levels until 2024 and above 30% well beyond that. Audio service convergence is happening at a much slower pace than expected.<ref>https://thefly.com/landingPageNews.php?id=3644213&headline=SPOT-Spotify-downgraded-to-Hold-from-Buy-at-Jefferies</ref> | |||
== References == | == References == | ||