$Spotify(SPOT.US) (+11% pre-mkt, long position) after reporting much higher than exp 4Q MAUs and strong 1Q gross margin guidance supported by price hikes. This could change the investment narrative on the stock, with $Spotify(SPOT.US) -40% (vs SPX +9%) over the past 6 months, as investors grew concerned about competitive positioning, unit economics and user purchase habits given the potential disruption from AI.
1Q guidance:•MAUs 759M vs 752.5M est•Oper income €660M vs €645M est•Revs €4.5B vs €4.58B est•Premium subs 293M vs 293.2M est•Gross margin 32.8% vs 32.3% est4Q results: - MAUs 751M 11% y/y vs 745.2M est- EPS €4.43 vs €2.63 est- Revs €4.53B vs €4.52B est - Prem revs €4.01B vs €4,00B est- Gross margin 33.1% vs 33.0% est - Premium subs 290M vs 289.4M est - Ad-supp MAUs 476M vs 468.74M est- Avg rev. per user €4.70 vs €4.67 estsThe copyright of this article belongs to the original author/organization.
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