Spotify Technology S.A.

Spotify Technology S.A.

SPOT

Market Cap$130.24B
Close$

Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Spotify Technology S.A.Spotify Technology S.A.101-19%7.90.3

Earnings Call Q1 2025

April 29, 2025 - AI Summary

Solid Subscriber Growth: Spotify reported a net addition of 5 million subscribers in Q1 2025, bringing the total to 268 million, marking a 12% year-on-year increase. This is the highest Q1 subscriber net add since 2020, with emerging markets like Latin America and Asia contributing significantly (two-thirds of the growth). The company anticipates continuing this growth trajectory, projecting to reach 273 million subscribers in Q2 2025.
Revenue Performance and Forecasts: Total revenue for Q1 2025 reached $4.2 billion, reflecting a 15% year-on-year growth (constant currency basis). For Q2 2025, the outlook predicts a revenue increase to $4.3 billion amidst a $100 million headwind from currency movements. The company maintains a long-term revenue growth target of 20% per year, despite acknowledging that achieving this in 2025 may be challenging.
Advertising Business Gains: Spotify's advertising segment grew by 5% year-on-year on a currency-neutral basis. The company has reported an increase in active advertisers and a growing demand for programmatic advertising due to improved tools for advertisers. However, there are concerns regarding pricing softness in the advertising market.

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$643.75

Target Price by Analysts

3.7% upsideSpotify Technology S.A. Target Price DetailsTarget Price
$115.89

Current Fair Value

81.3% downside

Overvalued by 81.3% based on the discounted cash flow analysis.

Share Statistics

Market cap$130.24 Billion
Enterprise Value$127.33 Billion
Dividend Yield$0 (0%)
Earnings per Share$5.67
Beta1.72
Outstanding Shares204,467,927

Return

Return on Equity-
Return on Assets-
Return on Invested Capital-

Valuation & Multiples

P/E Ratio101.03
PEG710.8
Price to Sales7.86
Price to Book Ratio20.69
Enterprise Value to Revenue7.84
Enterprise Value to EBIT83.86
Enterprise Value to Net Income109
Total Debt to Enterprise0.02
Debt to Equity0.34

Revenue Sources

No data

Insider Trades

ESG Score

No data

About Spotify Technology S.A.

CEO: Daniel Ek