
Spotify Technology (SPOT) Earnings Analysis
Chart done on daily timeframe. Spotify shares are at a new 52 week high following the company’s outstanding earnings report. The Swedish based streaming platform posted record profit margins thanks to their price hikes, bringing their earning per share to 1.33 euros versus the 1.05 expected. Their revenue grew 20% year over year to 3.8B euros. Monthly active users, a number watched closely for subscription based platforms, grew 14% year over year to 626M users, below the 631M expectations, but still a massive number. Spotify has yet to post a profitable year, but this is their second quarterly earnings of positive net income, a promising signal that they’ll finally post a profitable year.
Spotify shares were already soaring this year, likely because of the company’s CEO’s promise to “monetize” this year. Their efforts to cut costs and turn profitable is reflecting in their numbers, and with a valuation only at 65B, Spotify may continue its dominance back above all time high in the coming quarters. Next target is set at 390.00-410.00.