Spotify Technology S.A. (NYSE:SPOT ) Q1 2025 Earnings Conference Call April 29, 2025 8:00 AM ET Company Participants Bryan Goldberg - Head of Investor Relations Daniel Ek - Co-Founder and Chief Executive Officer Gustav Soderstrom - Co-President, Chief Product and Technology Officer Alex Norstrom - Co-President, Chief Business Officer Christian Luiga - Chief Financial Officer Operator Welcome to Spotify's First Quarter 2025 Earnings Call and Webcast.
Spotify Technology SA (NYSE:SPOT) shares slumped as the music streaming platform's first quarter earnings and profit forecast fell short of analyst expectations, despite strong subscriber growth. For Q1, earnings per share of €1.07 were significantly lower than the €2.33 expected, mainly due to higher-than-expected employment taxes tied to the sharp rise in its stock price over the past year.
Spotify reported on Tuesday that its premium subscriber base grew by 5 million in the first quarter, representing a 12% increase year-over-year. This brings the total to 268 million, marking the second-highest total ever and the highest net addition of paid subs for a first quarter since 2020.
While the top- and bottom-line numbers for Spotify (SPOT) give a sense of how the business performed in the quarter ended March 2025, it could be worth looking at how some of its key metrics compare to Wall Street estimates and year-ago values.
“There's a lot of uncertainty in the world, and when volatility rises, it's natural to ask who might be affected and how,” said Spotify CEO Daniel Ek kicking off a call with analysts. “I see Spotify faring better than most.
Spotify Technology SA (NYSE:SPOT) stock is 4.8% lower at $568.90 before the bell, after the streaming giant reported first-quarter operating income of 509 million euros, missing analyst estimates of 519.9 million euros, per FactSet.
Spotify (SPOT) came out with quarterly earnings of $1.13 per share, missing the Zacks Consensus Estimate of $2.29 per share. This compares to earnings of $1.05 per share a year ago.
Spotify forecast monthly active users and premium subscribers for the second quarter above market estimates on Tuesday, signaling strong demand for its audio streaming services as it leans on AI features to drive growth.
The audio streamer expects growth to accelerate throughout the year, despite macroeconomic uncertainty.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
SPOT's first-quarter 2025 earnings and revenues are likely to increase year over year.
Beyond analysts' top -and-bottom-line estimates for Spotify (SPOT), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended March 2025.