Spotify Reports Revenue, Subscriber Growth In Third Quarter 2019

Q3 Results

SPOTIFY TECHNOLOGY S.A. third fiscal quarter 2019 total revenue grew 28% year-to-year to €1,731 billion ($1.92 billion), with premium revenue (subscriptions) up 29% to €1.561 billion ($1.73 billion, slightly ahead of projections) and ad-supported revenue up 20% to €170 million ($189 million, slightly behind expectations). Podcasting revenue outperformed expectations -- with a 39% increase in hours streamed -- but remains less than 10% of total ad revenues. Gross profit increased 29% to €434 million ($48.2 million), and free cash flow jumped 48% to €48 million ($53.3 million). Operating loss narrowed.

Total Monthly Active Users increased 30% to 248 million, ahead of guidance, with SOUTHEAST ASIA remaining the fastest-growing region and INDIA and LATIN AMERICA also showing strong growth. Premium subscriptions increased 31% to 113 million.

The company also announced that CFO BARRY MCCARTHY is retiring as of JANUARY 15th and will be replaced by VP/FP&A, Treasury and Investor Relations PAUL VOGEL. MCCARTHY is expected to be re-appointed to the company's Board of Directors.

Fourth quarter guidance is for Total Monthly Active Users to increase to the 255-270 million range, with Total Premium Subscribers in the 120-125 million range. Total revenue is expected to reach €1.74-€1.94 billion, with operating loss in the: €31-€131 million range.

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