Spotify Technology SA (NYSE:SPOT) stock climbed after it reported fourth-quarter FY23 revenue growth of 16% year-on-year to €3.67 billion ($3.95 billion), missing the consensus of $4.06 billion.
EPS loss of €(0.36) or $(0.39) missed the consensus loss of $(0.14).
Premium Revenue grew 17% Y/Y to €3.17 billion, helped by subscriber additions.
Total MAUs (Monthly Active Users) rose 23% Y/Y to 602 million. Ad-supported MAUs grew a whopping 28% y/y to 379 million. Premium Subscribers grew 15% Y/Y to 236 million.
Within Premium, the average revenue per user (ARPU) rose by 1% Y/Y at €4.60. Ad-Supported revenue rose 12% to €501 million.
Margins: The gross margin improved by 140 bps to 26.7%, reflecting improved podcast and music profitability. The Premium gross margin was 29.1%, up 45 bps Y/Y, reflecting Marketplace growth.
Ad-supported gross margin was 11.6%, up 645 bps Y/Y, reflecting improving podcast profitability. Operating loss was €(75) million.
The adjusted operating income was €68 million with a margin of 2.1 %.
Spotify held €4.3 billion in cash and equivalents and generated €396 million in free cash flow, and €397 million in operating cash flow.
Outlook: Spotify sees first-quarter revenue of €3.6 billion (consensus $3.93 billion). It expects total MAUs of 618 million.
Price action:Â SPOT shares traded higher by 5.44% at $235.40 premarket on the last check Tuesday.
Spotify Photo by esthermm on Shutterstock
