新媒网 · 跨境数据社区

Spotify Q1’25: Operating Income Tripled, But Why the Selloff? Spotify delivered one of its most profitable quarters ever, yet the stock dropped nearly 10% post-earnings. Let’s look at what happened under the hood. Revenue reached €4.19B, up +15.2% YoY, driven by steady growth in both Premium and Ad-Supported businesses. Premium revenue rose +16.1% YoY, supported by +12.1% YoY growth in subscribers, reaching 268 million. Total Monthly Active Users grew +10.2% YoY to 678 million, with global engagement staying strong. The real story was profitability. Gross profit grew +32.1% YoY, with gross margin expanding +4.0 PPs to 32%. Operating income surged +203% YoY to €509M, pushing the operating margin to 12%. Spotify also posted €533M in free cash flow, a +7.1 PPs improvement YoY. Operating leverage was clear, as both SG&A and R&D declined as a percentage of revenue. Ad-supported MAUs grew +9.0% YoY but declined -2M sequentially, signaling some softness in user acquisition. ARPU rose +2.2% YoY but dipped slightly from Q4. Net income came in at €225M, up +14.2% YoY, but EPS of €1.07 missed consensus, which was expecting closer to €2.2. Forward guidance also came in light, with Q2 revenue projected at €4.3B, below the €4.38B consensus. Despite strong margin expansion and cash generation, investors reacted to the guidance miss and slower-than-expected ad MAU growth. Still, Spotify’s fundamentals continue to strengthen. Profitability metrics are improving quarter after quarter, and the platform continues to scale globally with disciplined cost control. Spotify is transitioning from a user-growth story to a margin-expansion and monetization story. The short-term stock move reflects a high bar, but the long-term trajectory remains solid. #SpotifyEarnings #StreamingBusiness #DigitalMedia #Profitability #TechStocks