Results
365 million MAU (monthly active users), up 22% YoY, short of expectations of 372.5 million
Also fell short of its guidance of 366-373 million users
Blamed on ongoing pandemic affecting performance in several markets such as in India, pausing of some marketing campaigns, and a user sign-up issue
Paid subscribers of 165 million, up 20% YoY, within the company’s guidance range
Revenue of US$2.75 billion, up 23% YoY, just beating expectations
Ad supported revenue grew 110%
Accounts for 12% of business now, which has traditionally been below 10%
Expected to grow its revenue share further as Spotify shifts from a music subscription company to an audio platform, particularly with podcasts greatly helping ad revenue
Premium revenue grew 17%
EPS of -US$0.225, significantly beating consensus of -$US0.45
Gross Profit of US$782 million, up 28% YoY
Operating profit margin improved to 0.5% from -9.8% Q2 2020, but did reduce from Q2 2021 of 0.7%
FCF of US$40 million, up 26% YoY
Podcasts
2.9 million podcasts at end of Q2, up from 2.6 million the prior quarter
Aggregate consumption of podcasts rose 95% on Spotify from a year ago. That number was 30% on a per user basis
Guidance for Q3
Between 377-382 million MAUs
Between 170-174 Premium subscribers
Full Year Guidance
400-407 million MAU by end of year, below consensus of 414.5 million
Market Reaction
Share price dropped 8% on the open due to falling short of expectations in MAU, marking the biggest intraday decline in three months.