Spotify Q3 2020 Results Beat Expectations

Q3 2020 Results Beat Expectations

SPOTIFY has reported 3rd quarter financial results, with CEO/Founder DANIEL EK noting, “SPOTIFY's flywheel is accelerating faster with every new user and creator that comes on our platform. We’re building the world’s largest audio network and it’s clear that our strategy is working.”

Q3 Highlights

• Key Metrics: 320M MAUs, above the top of the guidance range; Subscribers of 144M, at the very top of the range. Gross Margin better than expected and the company generated €103M of FCF
• Revenue was inline with guidance on a reported basis. While Foreign Exchange (FX) created a 500 bps headwind to growth, normalizing for FX, SPOTIFY would have slightly beat their forecast. 
• Advertising outperformed the forecast, exhibiting a return to growth following the impact of the pandemic in Q2
• Launch in RUSSIA and 12 surrounding markets 
• Q4 guidance ranges have been updated with midpoints raised to reflect increased optimism for the full year

« see more Net News