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Spotify:Quarterly Results/2023 Q1: Difference between revisions
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=== Earnings Calls Notes<ref>https://seekingalpha.com/article/4596364-spotify-technology-s-spot-q1-2023-earnings-call-transcript</ref> === | |||
==== User Growth ==== | |||
* Up 26 million quarter-over-quarter the largest Q1 net additions in history and the second largest all-time | |||
* Growth was broad-based, with strength across all regions. | |||
* Net additions across nearly all age demographics in both developed and developing regions. | |||
* Positive trends in DAU to MAU ratio as well as in churn. | |||
* Additional growth in family and duo plans as well as people coming on promotional had an impact on ARPU lower than expected | |||
* Listening hours for MAU was really strong in the quarter, both across music and podcasting | |||
==== Advertsing ==== | |||
* Very modest underperformance in advertising. | |||
* First Q1 in Spotify's history that surpassed €300 million in ad revenue. | |||
* Slightly behind on the ad side, about 15 -- about 20 million or so. | |||
* Have had similar sort of trends heading into Q1 as well | |||
* Growing nicely and outperforming the market and peer group overall, but the macro has probably slowed down the results. | |||
* Comps do get easier throughout the year, which will definitely benefit results | |||
==== FX ==== | |||
* Forecasting a 300 basis point headwind to growth in Q2 | |||
* This will be led by the weakening U.S. dollar relative to the euro | |||
==== AI ==== | |||
* Constant discussion with our partners and creators and artists, want to strike a balance between allowing innovation and, of course, protecting artists. | |||
* AI DJ, we've had nothing but positive reactions from across the industry. | |||
==== Efficiency ==== | |||
* Fosucing on speed of decision-making. | |||
* Will still take some time before that then leads into actual products that then leads to actual business results. | |||
* Gross margin side seeing sequential improvement throughout 2023, and will continue. | |||
* In terms of workforce, nothing else at in terms of workforce reductions. | |||
==== New Interface ==== | |||
* New home feed that we announced is still being rolled out. | |||
* Have already made lots of iterations with the user feedback gotten. | |||
* Will take multi quarters for us to roll out because it's not just a feature or something else. It's a whole new infrastructure behind it with a whole new instrumentation for our AI tools as well. | |||
==== Content ==== | |||
* Going to be very diligent in how to invest in future content deals | |||
* They sophisticated tools for measuring impact on the platform, where they understand the relative impact on lifetime value in our subscribers. That help paying a fair price or understanding what a fair price would be. | |||
* now the largest podcasting platform that means there is a great opportunity to amortize across a larger base. | |||
==== Pricing ==== | |||
* Raised prices in 46 different occasions and markets last year, and even in those markets still outperforming. | |||
* Feel really good about ability to raise prices over time, and have lots of data now that backs that up. | |||
* Marginally helped by being a lower cost provider, but it isn't a primary part of the strategy | |||
* Working with label partners to figure out what's the best opportunity to raise. | |||
== Expectations == | == Expectations == | ||