Spotify (SPOT) Reports Q2 Loss of EUR2.20, Offers Outlook
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Spotify (NYSE: SPOT) reported Q2 EPS of (EUR2.20), versus (EUR1.01) reported last year. Revenue for the quarter came in at EUR1.27 billion versus the consensus estimate of EUR1.27 billion.
MONTHLY ACTIVE USERS
MAUs grew 30% Y/Y to 180 million at the end of Q2. Growth in our emerging regions of Latin America and Rest of World continues to outpace growth in our more established markets.
Ad-Supported MAUs totaled 101 million at the end of Q2, up 23% Y/Y. Earlier this year we began rolling out a new user interface for our Ad-Supported tier of service, the first major revision since our mobile product was introduced in 2014. We expect this new user interface to drive improvements in engagement, retention, and conversion.
OUTLOOK
These forward-looking statements reflect Spotify’s expectations as of July 26, 2018 and are subject to substantial uncertainty. For the third quarter we are expecting:
Total Monthly Active Users (“MAU”): 188-193 million, up 25-29% Y/Y
Total Premium Subscribers: 85-88 million, up 36-43% Y/Y
Total Revenue: €1.2-€1.4 billion, up 17-36% Y/Y. This includes a negative impact of approximately €30 million from foreign exchange rates; excluding this impact, up 20-38% Y/Y
Gross Margin: 23.7-25.7%
Operating Loss: €10-€90 million
Additionally, for the fourth quarter we are expecting:
Total Monthly Active Users (“MAU”): 199-207 million, up 24-30% Y/Y
Total Premium Subscribers: 93-97 million, up 30-37% Y/Y
Total Revenue: €1.35-€1.55 billion, up 18-35% Y/Y. This includes a negative impact of approximately €20 million from foreign exchange rates; excluding this impact, up 20-37% Y/Y
Gross Margin: 24.5-26.5%
Operating Loss: €20-€100 million
For earnings history and earnings-related data on Spotify (SPOT) click here.
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