Spotify Technology S.A. reported a1.98 billion euros revenues, same as expected, but above 2019 comparable quarter revenues of 1.7 billion euros, according to the company’s press release. The company Q3 earnings per share (EPS) was 0.58 euros, up from the expected 0.50 euros.

  • Q4 Guidance
    • Raises Total Monthly Active Users (MAUs) to 340-345 million, up from previous 328-348 million
    • Total Premium Subscribers to be between 150 and 154 million
    • Raises gross margin to 24.2-26.2% from 23.7-25.7%
    • Cuts operating earnings losses to between -112 million euros to -32 million euros from previous -145 million euros to -45 million euros
    • Cuts mid-point revenue to 2-2.20 billion euros, from previous 2.05-2.25 billion euros
  • Q3 monthly MAUs grew 29% year over year to 320 million, topping the guidance range.
  • Premium subscribers expanded 27% year over year to 144 million.
  • Gross margin was 24.8% in Q3, towards the top end of the guidance range.
  • Free cash flows were 103 million euros, up 55 million euros on a year over year basis.

Spotify Technology’s stock is declining. SPOT is down on premarket 4.03%