Spotify Tech

The shares of Spotify $SPOT (+3.19%) shares soared to a record high on Wednesday following the music streaming provider's strong quarterly figures. At its peak, it rose by more than 10 percent to a good 462 US dollars. It was the fifth consecutive trading day with a record high for the shares. Since the beginning of the year, the shares have gained more than 140 percent. Since their record low in November 2022, the shares have increased almost sevenfold. Following this rally, the company's market capitalization amounts to more than 92 billion dollars. Spotify recorded 252 million paying subscribers in the third quarter, 12 percent more than a year earlier. The number of monthly active users, a key figure taken into account by advertisers, rose by eleven percent to 640 million. Both trends were stronger than experts had expected. Turnover climbed by almost a fifth to just under 4 billion US dollars.

The inverter manufacturer SMA Solar $S92 (-5.29%) has again lowered its expectations for the current year. The company announced late Wednesday evening that it now expects sales of 1.45 to 1.50 billion euros. The targets lowered in mid-June had been 1.55 to 1.70 billion euros. Experts had previously expected 1.54 billion euros. Earnings before interest, taxes, depreciation and amortization (EBITDA) are now expected to be between minus 20 million euros and plus 20 million euros. Previously, the target had been 80 to 130 million euros. Analysts are actually expecting just under 95 million euros. The company referred to the ongoing market weakness in the Home Solutions and Commercial & Industrial Solutions segments. In addition, the restructuring and transformation program announced in September 2024 would have an impact. These one-off effects, such as write-downs on inventories and restructuring expenses, are expected to total between 100 and 140 million euros. In addition, balance sheet write-downs as part of the annual financial statements are expected to lead to a further reduction in earnings before interest and taxes (EBIT) of EUR 20 to 30 million. According to the press release, the amount of the provisions is still subject to further review. The company also expects to cut up to 1,100 full-time positions worldwide.

The chip industry supplier ASML $ASML (-1.57%) is sticking to its broad long-term targets despite the recent difficult business situation. The increasing importance of artificial intelligence is also expected to provide momentum. Sales are set to rise to between 44 and 60 billion euros by 2030, the Group announced at a capital market day on Thursday. By way of comparison, the Dutch company had only lowered its sales forecast for 2025 to between 30 and 35 billion euros in mid-October. A gross margin of 56 to 60 percent of turnover is expected in 2030. The specialist for so-called lithography systems for the production of state-of-the-art computer chips, which are also important for AI applications, has recently felt a certain reluctance to buy on the part of customers. Many chip manufacturers had partially curtailed their investment plans, partly due to the sluggish development of electromobility. Added to this is the technology dispute between China and the USA with the debate on export bans for state-of-the-art chip production systems to China. However, ASML CEO Christophe Fouquet remains confident. The long-term prospects for the semiconductor industry remain promising, as semiconductors play a decisive role in the implementation of numerous megatrends in society, he said on Thursday, according to a press release. In addition to the growth potential of several other important end markets, the AI trend offers a significant opportunity for the semiconductor industry.

Thursday: Stock market dates, economic data, quarterly figures

ex-dividend of individual stocks

Shell USD 0.34

Exxon Mobil USD 0.99

GSK 0.15 GBP

Quarterly figures / company dates USA / Asia

12:30 Walt Disney Quarterly figures

Quarterly figures / company dates Europe

07:35 MLP SE, 9 months results

07:45 Eckert & Ziegler quarterly figures

07:50 MBB | Energiekontor quarterly figures

08:00 Jost Werke | Burberry quarterly figures | Siemens | Talanx PK

08:30 Baywa | Foxconn quarterly figures | Baywa analyst conference

09:30 Merck PK

10:00 Deutsche Telekom PK | K+S Analyst Conference

10:30 Baywa PK

11:00 Borussia Dortmund quarterly figures | Eon analyst conference

11:30 Grenke PK

12:30 Walt Disney quarterly figures

13:00 Wacker Neuson Earnings Call | Nagarro Analyst Conference

13:30 SMA Solar Analyst Conference

14:00 Merck | Aumann | GFT Technologies Analyst Conference

14:30 Volvo AB Capital Markets Day

16:30 Biontech: 'Innovation Series Day' on research & development via webcast

18:00 Deutsche Euroshop 9 months results

18:10 Patrizia result 9 months

Without time information: Allgeier | Einhell quarterly figures

Economic data

11:00 EU: GDP (2nd release) 3Q Eurozone FORECAST: +0.4% yoy/+0.9% yoy 1st release: +0.4% yoy/+0.9% yoy 2nd quarter: +0.2% yoy/+0.6% yoy

11:00 EU: Industrial Production September Eurozone FORECAST: -1.2% yoy/-1.6% yoy previous: +1.8% yoy/+0.1% yoy

14:30 US: Initial jobless claims (week) FORECAST: 220,000 previous: 221,000

14:30 US: Producer prices October PROGNOSE: +0.2% yoy previous: 0.0% yoy Core rate (excluding food and energy) PROGNOSE: +0.3% yoy previous: +0.2% yoy

Techaktien

@Techaktien

1Mon·

Podcast episode 64 "Buy High. Sell Low."

Subscribe to the podcast to keep Münzi moving!

00:00:00 US election

00:09:00 Bitcoin $BTC (-1.4%)

00:36:50 MicroStrategy $MSTR (-3.5%) & BlackRock $BLK

01:04:30 Coinbase (Münzi) $COIN (-2.09%)

01:08:45 Robinhood Markets $HOOD (+0.36%)

01:18:45 Social security contributions on capital gains

Spotify $SPOT (+3.19%)

https://open.spotify.com/show/3SHlvxmpYWkpiWnykajNPa

YouTube $GOOGL (-0.22%)
$GOOGL (-0.22%)

https://www.youtube.com/watch?v=KhujwtO8puE

Apple Podcast $AAPL (+0.29%)

https://podcasts.apple.com/us/podcast/folge-64-bitcoin-microstrategy-coinbase-robinhood-blackrock/id1695869891?i=1000676714526

open.spotify.comBuy High. Sell Low. Techaktien und Global.Stock.Flash

Julian M.

@julian-multhaupt

1Mon·

Should Spotify $SPOT (+3.19%) be sold at this point? What do you think? I am over 100% up.

3 Comments

Joris@JorisInvests

1Mon

If you believe in them as a durable profitable company (so you believe that they have good values and business model), than you should keep. If you believe they can't lower their costs and keep their subscribers, than sell.

•

ThemenmitKopf

@topicswithhead

1Mon·

Spotify Q3 2024 $SPOT (+3.19%)

Financial performance:

Revenue: Total revenue in Q3 2024 amounted to €3,988 million, an increase of 19% year-on-year (Y/Y); at constant currency, growth was 21% Y/Y.
Gross margin: A record 31.1% was achieved, which corresponds to an increase of 473 basis points Y/Y.
Operating result: Operating profit rose to a record high of 454 million euros, corresponding to an operating margin of 11.4 %.

Balance sheet overview:

Cash and cash equivalents: At the end of Q3 2024, the company held €6.1 billion in cash, restricted cash and short-term investments.
Total assets: Total assets amounted to EUR 10,553 million as at September 30, 2024.

Details of the income statement:

Revenue from premium services: Grew by 21% Y/Y due to the increase in subscriber numbers and ARPU (average revenue per user).
Revenue from ad-financed services: Increased by 6% Y/Y.

Cash flow overview:

Free cash flow: Reached €711 million in Q3 2024, contributing to a year-to-date figure of €1.4 billion.
Net cash flow from operating activities: In the third quarter of 2024, this amounted to EUR 715 million.

Key figures and profitability metrics:

Gross margin: 31.1% in the third quarter of 2024.
Operating margin: 11.4% in the third quarter of 2024.

Segment information:

Premium segment: Gross margin improved to 33.5 %, an increase of 436 basis points Y/Y.
Advertising-financed segment: Gross margin increased to 13.1%, an increase of 486 basis points Y/Y.

Competitive position: The company expanded its AI-based DJ services into Spanish-speaking markets and increased the availability of music videos, further improving the user experience.

Outlook and management commentary: Management is confident that sustainable growth will be achieved and that the long-term goals formulated at the Investor Day 2022 are achievable.

Risks and opportunities:

Currency fluctuations: Unfavorable currency movements impacted sales growth by approximately 270 basis points.

Summary of results:

Positives:

Record gross and operating margins.
Strong free cash flow generation.
Double-digit growth in monthly active users (MAUs) and premium subscribers.
Successful expansion of user experience and engagement strategies.
Efficiency improvements that led to a decrease in operating expenses.

Negative aspects:

Growth in advertising revenue lagged behind that of premium revenue.
Revenue was impacted by unfavorable currency movements.
Social security contributions in connection with share-based remuneration increased expenses.
Ongoing challenges in the profitability of the advertising-financed segment.
Potential risks from macroeconomic factors such as currency fluctuations.

Aktien Stammtisch

@Aktien_Stammtisch

1Mon·

$SPOT (+3.19%) | Spotify Q3 '24 Earnings Highlights:

🔹 EPS: €1.45 (Est. €1.72) 😕

🔹 Revenue: €3.99B (Est. €4.02B) 😕; UP +19% YoY

🔹 Gross Margin: 31.1% (Est. 30.2%) 🟢

🔹 MAUs: 640M (Est. 639M) 🟢; UP +11% YoY

🔹 Premium Subscribers: 252M (Est. 250M) 🟢; UP +12% YoY

Q4 '24 Guidance

🔹 Operating Income: €481M (Est. €445.7M) 🟢

🔹 Revenue: €4.1B (Est. €4.26B) 😕

Business Performance

🔸 Operating Income: €454M; reflecting improvement in gross margin and efficient cost management

🔸 Free Cash Flow: €490M; indicating strong balance sheet and liquidity

CEO Daniel Ek's Commentary:

🔸 "We've reached a strong position thanks to outstanding execution. Our relentless focus on innovation and growth enables us to deliver the most valuable user experience in the industry. I'm excited about what lies ahead as we move closer to sustained profitability."

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