💼 Performance Overview:
Spotify delivered 16% YoY revenue growth, driven by premium subscriber gains (+11% YoY) and ARPU growth (+5% YoY, or +7% at constant currency). The company achieved its first full year of operating income profitability, with €477M in Q4 operating income (11.2% margin).
📊 Key Financial Metrics (YoY Growth):
▫️ Revenue: €4.24B vs. €3.67B (+16%)
▫️ Net Income: €367M vs. -€70M
▫️ Adj. EPS: €1.76 vs. -€0.36
▫️ Gross Margin: 32.2% vs. 26.7% (+5.5pp)
▫️ Operating Margin: 11.2% vs. -2.0% (+13.2pp)
📍 Segment Breakdown:
▫️ Premium Revenue: €3.71B (+17% YoY)
▫️ Ad-Supported Revenue: €537M (+7% YoY)
▫️ Premium ARPU: €4.85 (+5% YoY, or +7% at constant currency)
💰 Balance Sheet Highlights:
▫️ Total Assets: €12.01B vs. €8.35B
▫️ Cash & Equivalents: €7.45B vs. €4.21B
▫️ Total Debt (Exchangeable Notes): €1.54B vs. €1.20B
📄 Income Statement Highlights:
▫️ Gross Profit: €1.37B (+40% YoY)
▫️ Total Operating Expenses: €891M (-16% YoY)
▫️ Social Charges Impact: €96M, €80M above forecast due to share price appreciation
▫️ Free Cash Flow: €877M (+121% YoY), a record high
📈 Future Outlook (Q1 2025 Guidance):
▫️ Revenue: €4.2B
▫️ Gross Margin: 31.5%
▫️ Premium Subscribers: 265M
▫️ Operating Income: €548M
🔎 Key Takeaway: Spotify's Q4 2024 saw record user growth, premium ARPU expansion, and strong cost control, leading to a historic first full year of profitability.
