By Successful Performance in Latin America and Rest of World
Spotify highlighted its accomplishments in Latin America and its Rest of World regions as contributing factors to its success. The company also acknowledged that the uptake of a promotional campaign exceeded expectations in terms of premium subscriptions.
Slightly Below Expected Revenue
While Spotify exceeded expectations in terms of user growth, its revenue fell slightly short. The company reported €3.67 billion in revenue, up from €3.17 billion in the previous year but lower than the anticipated €3.72 billion. However, Spotify achieved an all-time high of €501 million in advertising-supported revenue.
Gross Margin Beat Guidance
With a gross margin of 26.7%, Spotify slightly surpassed its projected 26.6%.
Positive Pre-market Reaction
Shares of Spotify rose by 5% during premarket trading on Tuesday.
Net Loss Decreased
Spotify recorded a net loss of €70 million for Q4, equivalent to 36 cents per share, compared to the €430 million loss (€2.93 per share) in the same period the previous year. Analysts had predicted a net loss of 37 cents per share.
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