Spotify (SPOT) Q2 2021 Earnings


  • 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


  • 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.

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