Description

Spotify Bets Big on Audiobooks—Is This the Platform’s Most Disruptive Move Yet?

Spotify reported its first-quarter 2025 results with decent metrics, yet the numbers failed to satisfy market expectations, leading to a sharp drop in its stock price. Despite posting a 12% year-over-year increase in premium subscribers to 268 million—exceeding analyst estimates of 265 million—Spotify shares fell 8.7% in early trading to $545.77. The company also registered 678 million monthly active users, up 10%, broadly meeting expectations. Revenue came in at €4.2 billion, aligning with consensus estimates. However, forward guidance fell slightly short of analyst expectations, with the company forecasting 689 million monthly active users and 273 million premium subscribers in Q2, versus expectations of 695 million and 271 million, respectively. CEO Daniel Ek emphasized confidence in the long-term trajectory despite the short-term market reaction, reiterating that recent strategy refinements are beginning to take shape. This comes on the heels of Spotify’s first full-year profit in 2024, supported by pricing adjustments and workforce reductions aimed at boosting margins.

Our Report Structure:

⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
⦁ Disclosures

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