It is actually making real sort of material decision-making at the top. So overall, the overall subs performance was pretty broad based. ul. And then, Paul, maybe you can chime in on the detailed questions. As such, Ek remains confident that revenue attributed to podcasts and audiobooks should have materially gross margins at scale than music-related revenue: And as we've said before, this heavy investment that we've done on the podcasting side is going to reverse in 2023 as it starts moderating. Now that said, of course, we're always looking at how we can make that better. I'll take this and feel free to chime in, Paul. All right. [Operator Instructions]. Fourth, Daniel Ek acknowledged in the Q3 earnings call that the hurdle rate for new investments would increase going forward, so we should expect to see spending moderate in 2023: But I also want to reiterate that we're keenly aware that this is an uncertain time and the cost of capital has increased. spotify usa inc. And I don't have anything specific to announce at this point, but we are constantly discussing with our rights holder partners around various price increases that we would be doing. And now we're going to have to live up to that. You're seeing a lot of Polish music being very impactful as well. Paul Vogel is 47, he's been the Chief Financial Officer of Spotify Technology S.A since 2020. So, in Q4, we outperformed our expectations. During this call, we'll also refer to certain non-IFRS financial measures. So, when you look at the core behavior, it may take longer in some developing markets than it does in mature markets, et cetera. WebPaul Vogels Post Paul Vogel Chief Financial Officer at Spotify 4d We do sometimes 10, sometimes hundreds of those within quarters. Spotify have hired their new Chief Financial Officer, plucking from their existing team someone they trust. It was up again in Q3. These charts show the average base salary (core compensation), as well as the average And just to level set on context. Netflix, which had never existed before, was often compared to HBO, which turned out to be an inaccurate comparison, Vogel said. How would you think about 2023 net adds for MAUs and premium subscribers relative to your performance in '22? So first off, we have great relationships with all of our music partners and are in constant dialogues with them about their performance and our performance in all the markets around the world. But we see this often where we have some years where we over-index on MAU or we over index on subs, and it can change even throughout the year in terms of how we're trending. shareholder interests. I have no business relationship with any company whose stock is mentioned in this article. Find contact details for 700 million professionals. Overall, Spotify management expect margins to improve from 2023 onwards, which provides some comfort for investors. And with that, I'll hand it over to Paul to go deeper into the numbers, and then Bryan will open it up to the Q&A. And now we're holistically looking at it as one P&L and focus on driving efficiency across the board by readdressing resources to where it's most needed. Like I said, we slightly outperformed in Q4, and we'll see how the year unfolds. Spotify's Q4 guidance for MAUs and premium subscribers was strong, forecasting 479m MAUs (+5% QoQ; +18% YoY) and 202m premium subscribers (+4% QoQ; +12% YoY). I'd like to add a bit more color on the quarter and then touch upon the broader performance of the business and our outlook. And obviously, the big sort of counter to that would be does it mean that you can sustain yourself or is it more one-hit wonders? So, what does that mean future? He spent nearly six years covering crime in the Dakota County courts before switching focus to the St. Paul mayor's office, city council, and all things neighborhood-related, from the city's churches to its parks and light rail. We've got another question from Doug Anmuth on marketing. Paul Vogel is the Chief Financial Officer at Spotify. - Spotify CFO Paul Vogel, Q3 2022 Earnings Call. On the subscriber front, we expect to add about 2 million net subscribers, bringing total subscribers to 207 million. Thanks, Paul. Wed, Jul He is Paul Vogel is new to the role of Spotify CFO, but not to Spotifyor to the relationship between finance and the tech/media industry. For the last four years, hes been at Spotify heading up Investor Relations and leading the FP&A (Financial Planning & Analysis) and Treasury teams. And so, we feel good about that and where the tech is going, and then it's really going to somewhat depend on just how the macro rolls out over time. Spotify announced its second-quarter Today, And then last point I would just add is to say that structurally, as the revenue mix shifts to more and more non-music content, so both podcasting but also audiobooks, et cetera, those gross margins in those categories is going to be significantly higher than the ones we've had in the music business, too. spotify. I'm from Doug Anmuth on subscribers. And even within that, we had two months that outperformed and one month that underperformed. You typically see MAU to Premium subscriber conversion in the 12 to 18-month range. four years ago, we entered into podcasting. Earn your MBA and SM in engineering with this transformative two-year program. And obviously, I look forward to sharing more on Stream On, sort of wink-wink around all the updates that we're planning throughout the year as well that I think will mean a lot for both music and podcasting and beyond. So, we're encouraged because we think fundamentally that audio books has a massive opportunity and that there are very few consumers that are currently participating in the ecosystem. We've talked about podcasting that 2022 was going to be the peak year in terms of the drag that podcasting had on our gross margins. Bring a business perspective to your technical and quantitative expertise with a bachelors degree in management, business analytics, or finance. Okay. Share. Spotify Technology S.A. (NYSE:SPOT) Q4 2022 Results Conference Call January 31, 2023 8:00 AM ET. And since we're not committed to rolling that out, I don't really have much of a sort of comment, but to say that overall, we're committed to creating the best audio experience for consumers and creators in the world. As such, if Spotify is able to acquire customers that are valuable in the long-term (i.e., have a high customer lifetime value), it makes sense to be more aggressive with S&M investments to gain market share and strengthen their MAU lead over competitors like Apple (AAPL) and Amazon (NASDAQ:AMZN). And that concludes today's call. Users can either pay for the streaming service and listen ad-free or choose to sign up for a free subscription and listen to ads. We want to have a billion users, Paul Vogel, Spotifys chief financial officer, told attendees at the 19th annual MIT Sloan CFO Summit last month. Good morning, and welcome to Spotify's Fourth Quarter 2022 Earnings Conference Call and Webcast. And the other change is that unlike in the early areas of streaming, we're seeing a notable increase in local repertoire. Could you give us an update on your ticketing business? Broken down by vertical, Spotify's premium gross margin was 28.0% (down from 29.1% in Q3 2021), while ad-supported gross margin was 1.8% (down from 10.5% in Q3 2021). Average annual salary was $55,001 and median We will continue to work to build the platform of the future, and that will take investment in new opportunities that we outlined like podcasts and audio books. And so, to have both Gustav and Alex help me in the day-to-day in this much more complex business, I think, will materially mean that we'll have more brains thinking about these things. We're definitely the latter. WebSpotify corporate office is located in 19 Regeringsgatan, Stockholm, Stockholm, 111 53, Sweden and has 4,211 employees. This was 10 million ahead of guidance, up 33 million quarter-over-quarter and the largest Q4 net additions in our history. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. He confirmed that Spotifys annual podcasting revenue grew by more than 300% to We haven't given a timeline on that. We think Q1 will be the low point in terms of gross margin for the year, with gross margin improving throughout 2023. We want to be the No. All right. If you need more lookups, subscriptions start at $39 USD/month. However, we'll need to wait until next quarter for concrete guidance on margins. What to watch: Next quarter, Spotify expects its gross profit margins to continue to improve slightly to 25.5%, which should sit well with investors. It's roughly 600 employees that were affected. Paul Vogel then revealed precisely how not yet profitable podcasting was. Our next question is going to come from Deepak on user choice billing. Vogel, who was interviewed byCharles Kane,a senior lecturer in Global Economics and Management at MIT Sloan, described how Spotify experimented with its service offerings before settling on a freemium subscription model. So, I think the -- there is a lot more artists that are mattering now than perhaps ever before. We want to have a billion users, Paul Vogel, Spotifys chief financial officer, told attendees at the 19th annual MIT Sloan CFO Summit last month. Next question from Rich Greenfield on audio books. But the trend is the same, which is the longer they stay, the more likely they are to convert. During his presentation at the investor conference, Vogel said economic uncertainty has yet to have much of an impact on Spotify. Reconciliations between our IFRS and non-IFRS financial measures can be found in our letter to shareholders, in the financial section of our Investor Relations website and also furnished today on Form 6-K. And with that, I'll turn it over to Daniel. With respect to first quarter guidance, we continue to see strong momentum in MAU and anticipate reaching half a billion users by the end of Q1. We finished the quarter with 205 million subscribers, 3 million ahead of guidance, thanks to broad-based strength across several regions, particularly Latin America. So, it was broad-based globally. Okay. Next question from Benjamin Black on Marketplace. We think Q1 will be the low point in terms of gross margin for the year, with gross margin improving throughout 2023. Sienkiewicza 82/84 Another question from Benjamin Black on pricing. Okay. Yes. We outperformance of EUR 3 million. Joining us today will be Daniel Ek, our CEO; and Paul Vogel, our CFO. Pracownia Jubilerki And how should we be thinking about the business model and the market opportunity? Year-over-year churn, though, was pretty consistent with where it was at this point last year. Yes, I can be quick now. [Operator Instructions] And our first question today is going to come from Matt Thornton on subscribers and pricing. As a result of the unpaid leave, her regular salary of $120,000 was reduced to $73,000 for 2019. Well, thank you, everyone, for joining the call. Okay. Analyst at a VC fund and Masters/PhD student in Clinical Psychology based out of Sydney, Australia. Base salary 100,000 (GBP pounds) Stock $130000 (US My only addition to that would be, again, to note that much of the investments we've been making over these past few years that culminated in 2022 was making platform improvements. So that's our general approach. Increased publishing rates and a one-off change in accruals. So I'd say at a high level, we still remain very confident with the margin profile and margin guidance we gave at the Investor Day. So, while reported revenue was a touch below forecast, our organic growth on a currency-neutral basis modestly outperformed due primarily to advertising. Non-degree programs for senior executives and high-potential managers. Not the Paul Vogel you were looking for? And during 2023, you'll see a lot of new things roll out in the audio book category from Spotify. WebIncludes base and annual incentives. And that's going to conclude our Q&A session for today's call. And while it's too early to provide any guidance with respect to 2023, we do expect our profitability rates to improve relative to 2022 as we grow revenue, lap certain investments and deploy capital more efficiently. (All three companies offer competing ways for users to stream music.) Spotify is the largest global audio streaming platform with 456m MAUs. Is this happening to you frequently? Next question from Doug Anmuth, users and subscriber growth in '23. Please disable your ad-blocker and refresh. As a result of the unpaid leave, her regular salary of $120,000 was reduced to $73,000 for 2019. And what are the reasons, if any, Spot would not take price? And the management changes really had nothing to do with the change of strategy in podcasting. The main bear case for Spotify has always been that they will never be able to expand gross margins to reach their long-term goal of 40% recently outlined in their 2022 investor day. Our view is, why shouldn't it be Spotify?" Our next question is going to come from Justin Patterson. A resident of Hamline-Midway, he is married to a Frogtown woman. Szybki kontakt z administratorem: kontakt@mokave.pl. Tworzymy jzmioci donatury ipierwotnej symboliki. Through intellectual rigor and experiential learning, this full-time, two-year MBA program develops leaders who make a difference in the world. But I would mostly say that most of what we're seeing is quite encouraging because of all the response that we're seeing from artists around the world and their ability to grow their audience. I think we've done pretty well. I think we've talked about a lot of them. So, by the end of the year, we had more than 100 million tracks on our platform and more than 5 million podcasts and more than 300,000 audio books being enjoyed by almost 0.5 billion listeners. It exceeded those expectations pretty nicely. WebHi All, recently got an offer from Spotify for a senior program manager role based in London. And while it was really great to close out 2022 on such a high note, the fourth quarter is -- I think we just really one of many proof points that shows that the investments we made over the last few years are really paying dividends. And podcast, do you still expect podcast to reach breakeven within several years? What do you think? So, I look forward to sharing more about our evolution and all the things that we're building at our upcoming Stream On event on March 8. We've got another question from Rich Greenfield on the product. However, we continue to generate roughly $200 million in free cash flow on a trailing 12-month basis and we expect to be free cash flow positive for the full year of 2023. And any specific areas of the business to call out that were impacted more so than others? Entering text into the input field will update the search result below. Reported results were aided by a 600-basis point currency benefit. This is for Daniel. Mam prawo dostpu do treci swoich danych i ich sprostowania, usunicia, ograniczenia przetwarzania, oraz prawo do przenoszenia danych na zasadach zawartych w polityce prywatnoci sklepu internetowego. Is audio books as a category working? And with that, I'll hand things back to Bryan for Q&A. WebIn a equity funding round in 2015, Spotify was valued at $8.5 billion. So, we'll get some of the leverage on top of that investment in 2023, along with higher revenue growth and more gross profit dollars. We'll be available on our website and also on the Spotify app under Spotify Earnings Call Replays. All right. Does Spotify need to figure out music discovery knowing that TikTok appears to be ramping up to launch a music subscription service in the U.S. and Europe later this year? They're trying to engage more with that audience, and we're obviously trying to help them monetize that audience even better. As Daniel mentioned, we are entering a new area with even more focus. We actually outperformed those by about EUR 50 million or so, plus or minus. I wrote this article myself, and it expresses my own opinions. A rigorous, hands-on program that prepares adaptive problem solvers for premier finance careers.