Spotify (SPOT) Reports Q4 Loss of EUR0.66 on Revenues of EUR2.17B

Spotify (NYSE: SPOT) reported Q4 EPS of (EUR0.66), versus (EUR1.14) reported last year. Revenue for the quarter came in at EUR2.17 billion, versus EUR1.86 billion reported last year.

GUIDANCE:

Spotify sees Q1 2021 revenue of EUR1.99-2.19 billion.

Spotify sees FY2021 revenue of EUR9.01-9.41 billion.

2021 OUTLOOK

In 2020, we believe the pandemic had little impact on our subscriber growth and may have actually contributed positively to pulling forward new signups. From a revenue standpoint, advertising was negatively affected in the back half of Q1 and persisted throughout the rest of the year. Looking ahead, we are optimistic about the underlying trends in the business into 2021 and beyond, however, we face increased forecasting uncertainty versus prior years due to the unknown duration of the pandemic and its ongoing effect on user, subscriber, and revenue growth.

The following forward-looking statements reflect Spotify’s expectations as of February 3, 2021 and are subject to substantial uncertainty. The estimates below utilize the same methodology we’ve used in prior quarters with respect to our guidance and the potential range of outcomes. Given the extraordinary operating circumstances we currently face with respect to the impact of COVID-19 there is a greater likelihood of variances within those ranges than typical quarters.

Q1 2021 Guidance:

• Total MAUs: 354-364 million
• Total Premium Subscribers: 155-158 million
• Total Revenue: €1.99-€2.19 billion
  • Assumes approximately 770 bps headwind to growth Y/Y due to movements in foreign exchange rates
• Gross Margin: 23.5-25.5%
• Operating Profit/Loss: €(78)-€(28) million

Full Year 2021 Guidance:

• Total MAUs: 407-427 million
• Total Premium Subscribers: 172-184 million
• Total Revenue: €9.01-€9.41 billion
  • Assumes approximately 370 bps headwind to growth Y/Y due to movements in foreign exchange rates
• Gross Margin: 23.7-25.7%
• Operating Profit/Loss: €(300)-€(200) million

For earnings history and earnings-related data on Spotify (SPOT) click here.

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