Spotify’s focus on prices and cost-cutting pays off

  • Spotify stock rises on subscriber growth and narrower loss
  • Fourth-quarter loss of 36 cents a share on revenue of €3.67 billion
  • Monthly active users grew 5% to 602 million
  • Number of premium subscribers rose 4% to 236 million
  • Spotify expects monthly active users to reach 618 million in current quarter
  • Gross margin rose to 26.7% in fourth quarter

Spotify Technology stock rose on Tuesday after the company reported subscriber growth ahead of expectations and a narrower-than-expected loss. The audio streaming company’s fourth-quarter loss was 36 cents a share on revenue of €3.67 billion, beating analysts’ expectations. Monthly active users grew 5% to 602 million, while the number of premium subscribers rose 4% to 236 million. Spotify expects monthly active users to reach 618 million in the current quarter. The company’s gross margin also improved, rising to 26.7% in the fourth quarter.

Public Companies: Spotify Technology (SPOT)
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Factuality Level: 8
Justification: The article provides specific information about Spotify’s financial performance, including its fourth-quarter loss, revenue, and subscriber growth. It also includes statements from the company itself. However, the article lacks in-depth analysis and context, and it does not provide any opposing viewpoints or potential challenges that Spotify may face in the future.

Noise Level: 3
Justification: The article provides a brief summary of Spotify’s financial performance, but it lacks in-depth analysis, evidence, and actionable insights. It mainly focuses on the company’s stock performance and subscriber growth without delving into the long-term trends or consequences of their strategies. The article also lacks scientific rigor and intellectual honesty as it does not provide any critical analysis or questioning of Spotify’s actions. Overall, it contains mostly surface-level information and does not provide much value beyond a basic update on the company’s financials.

Financial Relevance: Yes
Financial Markets Impacted: Spotify Technology stock

Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article pertains to the financial performance of Spotify, a technology company. It discusses the company’s subscriber growth, revenue, and profitability. There is no mention of any extreme event or its impact.

Reported publicly: www.marketwatch.com