2024-04-04 07:54:37 ET
Summary
- Spotify reported fourth quarter FY23 results setting the stage for a better Premium subscriber growth in 2024, in my opinion.
- I think management will continue to beat its own MAU guidance in FY24.
- In my opinion, the price increases will improve profitability in FY24 and allow Spotify to achieve higher ARPU.
- I share my thoughts on Spotify here, and why I think it has more upside in 2024.
Investment Thesis
Spotify ( SPOT ) announced its fourth-quarter earnings for FY2023 and announced a price increase and a new basic tier, setting the right tone for FY24. I'm initiating Spotify with a buy, and here's why. Management reported its best sequential growth in Premium revenue, ad-supported, and premium ARPU (average revenue per user) this quarter. I think Spotify's Premium revenue, which came in 17% higher year-over-year in Q4, will continue to show an upward trend due to two factors....
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Spotify: Another Beat Ahead - Initiating With A Buy