Spotify (SPOT) Q3 2024 Earnings Breakdown

Key Highlights:

• Strong Revenue Growth: Spotify reported continued revenue growth, reaching €3.988 billion for the three months ended September 30, 2024, a 39% increase compared to the same period in 2023. This positive trend was driven by a 12% year-over-year growth in Premium Subscribers, reaching 252 million.
• Premium ARPU Increase: Average revenue per Premium user (ARPU) saw a significant increase to €4.63 for the nine months ended September 30, 2024, a 7% increase from the same period in 2023. This was mainly driven by price increases.
• Expansion of Audiobooks: Spotify continued to expand its audiobook offerings. It launched an Audiobook Access Tier in the US for Ad-Supported users and expanded the availability of audiobooks on the Premium Service in several new markets.
• Legal Challenges: Spotify faces ongoing legal challenges, including a lawsuit filed by the Mechanical Licensing Collective (MLC) concerning royalty payments for bundled audiobook access. The potential financial exposure for the period March 1, 2024 to September 30, 2024 is estimated at €94 million plus potential penalties and interest.
• Share Repurchase Program: Spotify repurchased 469,274 ordinary shares for €91 million under its ongoing share repurchase program. The program has a remaining authorization of approximately $909 million and will expire on April 21, 2026.