SPOT - Spotify's First Quarter Tells A Story Of Record Profit And An Epic Win | Benzinga
After a year with of layoffs and activist attention that triggered many changes, Spotify Technology S.A. (NYSE: SPOT) managed to surpass both top and bottom estimates. Moreover, the streaming giant reported record first quarter earnings as the result of efficient cost-cutting initiatives that also brought significant margin improvements.
First Quarter Financials Shows That A Shift In Focus Paid Off
For the quarter ended in March, Spotify reported revenue rise 20% YoY to 3.64 billion euros, surpassing LSEG’s estimate of 3.61 billion.
As a result of cost-cutting efforts that included layoffs, Spotify reported earnings of 97 euro cents which equate to $1.04, leaving LSEG’s estimate of 65 euro cents far behind as gross margin reached 27.6%.
Spotify ended its fiscal first quarter with 615 million monthly active users, which was 3 million short ...