Spotify Technology S.A. reported a robust financial performance for the first half of 2024, with significant growth in both revenue and user base. The company's total revenue increased by 20% year-over-year to €7.443 billion, driven by a 12% increase in Premium Subscribers to 246 million and a 15% rise in Ad-Supported Monthly Active Users (MAUs) to 393 million. Premium revenue, constituting 89% of total revenue, was bolstered by subscriber growth and a rise in average revenue per user (ARPU). Ad-Supported revenue also saw a 15% increase, attributed to growth in music impressions sold and higher cost-per-thousand impressions (CPM). Gross profit surged by 38% to €2.116 billion, with a notable improvement in gross margin from 25% to 28%. Research and development expenses decreased by 14%, reflecting a...Show More

Spotify Technology S.A. reported a robust financial performance for the first half of 2024, with significant growth in both revenue and user base. The company's total revenue increased by 20% year-over-year to €7.443 billion, driven by a 12% increase in Premium Subscribers to 246 million and a 15% rise in Ad-Supported Monthly Active Users (MAUs) to 393 million. Premium revenue, constituting 89% of total revenue, was bolstered by subscriber growth and a rise in average revenue per user (ARPU). Ad-Supported revenue also saw a 15% increase, attributed to growth in music impressions sold and higher cost-per-thousand impressions (CPM). Gross profit surged by 38% to €2.116 billion, with a notable improvement in gross margin from 25% to 28%. Research and development expenses decreased by 14%, reflecting a strategic reduction in headcount and lower impairment charges on real estate assets. Sales and marketing expenses also declined by 11%, primarily due to reduced personnel costs and advertising expenses. General and administrative costs saw an 18% decrease, again due to lower personnel-related costs and real estate asset impairment charges. Finance income rose significantly, mainly from increased interest income and dividend income, while finance costs grew due to fair value adjustments on financial instruments. The company's income tax showed a benefit of €27 million, primarily due to deferred tax assets recognition. Spotify's liquidity position remains strong, with cash and cash equivalents, and short term investments totaling €5.398 billion. The company's Free Cash Flow also increased substantially to €697 million. Spotify continues to optimize its real estate footprint and has not engaged in any unregistered sales of equity securities or used proceeds for unregistered sales. The company remains subject to various legal proceedings but has not experienced any defaults on senior securities.