Slide 1: Q1 2025 Update
Q1 2025 Update April 29th, 2025
Slide 2: Table of Contents
Executive Summary p.03 Key Highlights p.04 Financial Summary p.06 Table of MAUs & Subscribers p.13 Contents Product & Platform p.16 Outlook p.19 Financial Statements p.22 2
Slide 3: Executive Summary
Executive Summary We are pleased with our performance in Q1, as nearly all of USER & FINANCIAL SUMMARY Q1 2024 Q4 2024 Q1 2025 Y/Y Q/Q our KPIs were in-line to ahead of guidance. The business added 3 million MAU during the quarter, in-line with our USERS (M) Total Monthly Active Users ("MAUs") 615 6
Slide 4: Key Highlights
Key Highlights Continued double-digit Y/Y Strong revenue growth with Expanding Spotify Partner growth in MAU and Premium sustained profitability Program, automated ads Subscribers improvement solutions and concert discovery ● MAUs grew 10% Y/Y to 678 million, ● Total Revenue grew 15% Y/Y to €4.2 ● S
Slide 5: Key Highlights: Actuals vs. Guidance
Key Highlights: Actuals vs. Guidance Results Q1 2025 Actuals Guidance Monthly Active Users (M) In-Line 678 678 Users Premium Subscribers (M) Above 268 265 Results Q1 2025 Actuals Guidance Total Revenue (€B) In-Line €4.2 €4.2 Financials Gross Margin Above 31.6% 31.5% Operating Income (€M)* Below €509
Slide 6: Financial Summary
FINANCIAL SUMMARY
Slide 7: Financial Summary
Financial Summary USER, FINANCIAL & LIQUIDITY SUMMARY Q1 2024 Q2 2024 Q3 2024 Q4 2024 Q1 2025 Y/Y Y/Y FXN* USERS (M) Total Monthly Active Users ("MAUs") 615 626 640 675 678 10% -- Premium Subscribers 239 246 252 263 268 12% -- Ad-Supported MAUs 388 393 402 425 423 9% -- FINANCIALS (€M) Premium 3,247
Slide 8: Financial Summary
Financial Summary Revenue of €4,190 million grew 15% Y/Y in Q1 (or 15% Y/Y constant currency*), reflecting: Revenue ● Premium Revenue growth of 16% Y/Y (or 16% Y/Y constant currency*), driven by subscriber gains and ARPU increases; and ● Ad-Supported Revenue growth of 8% Y/Y (or 5% Y/Y constant curr
Slide 9: Revenue
Revenue Premium growth driven by Subscriber and ARPU gains Premium Revenue grew 16% Y/Y to €3,771 million (or 16% Y/Y constant currency*), reflecting subscriber growth of 12% Y/Y and a Premium ARPU increase of 4% Y/Y to €4.73 (or up 4% Y/Y constant currency*). Excluding the impact of FX, ARPU perfor
Slide 10: Gross Margin
Gross Margin Driven by continued improvement across Premium and Ad-Supported segments Gross Margin finished at 31.6% in Q1, up 403 Premium Gross Margin was 33.5% in Q1, up Ad-Supported Gross Margin was 15.3% bps Y/Y. The Y/Y trend was driven by 332 bps Y/Y. The Y/Y trend was driven by in Q1, up 885
Slide 11: Operating Expenses
Operating Expenses Y/Y declines led by timing factors Operating Expenses declined 2% Y/Y in Q1. Absent the effects of Y/Y movements in currency and Social Charges, the 3% Y/Y decline in Operating Expenses was driven primarily by a decrease in personnel and related costs and lower marketing spend. Th
Slide 12: Free Cash Flow
Free Cash Flow Record Q1 performance aids balance sheet strength Free Cash Flow* was €534 million in Q1, a record high Q1 as a result of higher Net Income adjusted for non-cash items and improving net working capital. Capital expenditures rose €1 million Y/Y to €6 million. While the magnitude of Fre
Slide 13: MAUs & Subscribers
MAUS & SUBSCRIBERS
Slide 14: Monthly Active Users (MAUs)
Monthly Active Users (MAUs) Total MAUs grew 10% Y/Y to 678 million, up from 675 million last quarter and in-line with our guidance. Quarterly performance reflected: ● Y/Y growth across all regions, led by Rest of World and Latin America ● Quarterly performance reflected anticipated lighter volumes o
Slide 15: Premium Subscribers
Premium Subscribers Our Premium Subscribers grew 12% Y/Y to 268 million, up from 263 million last quarter and 3 million above guidance. Quarterly performance reflected: ● Y/Y and Q/Q growth across all regions, with outperformance led by Rest of World, Latin America and Europe ● Successful regional p
Slide 16: Product & Platform
PRODUCT & PLATFORM
Slide 17: Accelerating Value for Creators and Advertisers Worldwide
Accelerating Value for Creators and Advertisers Worldwide Introduced Automated Ad Solutions to The Spotify Partner Program Expanded to 9 New Expanded Spotify Ad Exchange Transform Buying, Measurement and Markets following the successful January launch of partnerships beyond The Trade Desk to Creativ
Slide 18: Driving Growth and Connection Between Artists, Fans and Creators
Driving Growth and Connection Between Artists, Fans and Creators Expanded AI-Narrated Audiobooks with Rolled out our Concerts Near You playlist, which Launched first-ever Spotify Creator ElevenLabs, allowing authors to tap into helps listeners find local concerts, with weekly Milestone Award, which
Slide 19: Outlook
OUTLOOK
Slide 20: Outlook for Q2'25
Outlook for Q2’25 The following forward-looking statements reflect Spotify’s expectations for Q2 2025 as of April 29, 2025 and are subject to substantial uncertainty. Total MAUs 689 million Implies the addition of approximately 11 million net new MAUs in the quarter Total Premium Subscribers 273 mil
Slide 21: Webcast Information and Use of Non-IFRS Measures
Webcast Information We will host a live question and answer session starting at 8:00 a.m. ET today on investors.spotify.com. The session will be led by Daniel Ek, our Co-Founder and Chief Executive Officer, and Christian Luiga, our Chief Financial Officer. Questions can be submitted by going to slid
Slide 22: Financial Statements
FINANCIAL STATEMENTS
Slide 23: Trending Charts
Trending Charts MAUs, Ad-Supported Users, Premium Subscribers & Revenue By Segment * Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter.
Slide 24: Trending Charts
Trending Charts Gross Profit by Segment, Gross Margin by Segment & Free Cash Flow* * Free Cash Flow is a non-IFRS measure. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information" to be consistent with other slides. Last Twelve Months (LTM) represen
Slide 25: Interim condensed consolidated statement of operations
Interim condensed consolidated statement of operations (Unaudited) (in € millions, except share and per share data) Three months ended March 31, 2025 December 31, 2024 March 31, 2024 Revenue 4,190 4,242 3,636 Cost of revenue 2,864 2,874 2,632 Gross profit 1,326 1,368 1,004 Research and development 3
Slide 26: Interim condensed consolidated statement of financial position
Interim condensed consolidated statement of financial position (Unaudited) (in € millions) March 31, 2025 December 31, 2024 Assets Non-current assets Lease right-of-use assets 223 226 Property and equipment 178 188 Goodwill 1,156 1,201 Intangible assets 43 48 Long term investments 1,958 1,635 Restri
Slide 27: Interim condensed consolidated statement of cash flows
Interim condensed consolidated statement of cash flows (Unaudited) (in € millions) Three months ended March 31, 2025 December 31, 2024 March 31, 2024 Operating activities Net income 225 367 197 Adjustments to reconcile net income to net cash flows Depreciation of property and equipment 20 21 22 Amor
Slide 28: Calculation of basic and diluted earnings per share
Calculation of basic and diluted earnings per share (Unaudited) (in € millions, except share and per share data) Three months ended March 31, 2025 December 31, 2024 March 31, 2024 Basic earnings per share Net income attributable to owners of the parent 225 367 197 Shares used in computation: Weighte
Slide 29: Reconciliation of IFRS to non-IFRS results
Reconciliation of IFRS to non-IFRS results Revenue on a constant currency basis (Unaudited) (in € millions, except percentages) Three months ended March 31, 2025 March 31, 2024 IFRS revenue 4,190 3,636 Foreign exchange effect on 2025 revenue using 2024 rates 9 Revenue excluding foreign exchange effe
Slide 30: Reconciliation of IFRS to non-IFRS results
Reconciliation of IFRS to non-IFRS results Operating expenses on a constant currency basis (Unaudited) (in € millions, except percentages) Three months ended March 31, 2025 March 31, 2024 IFRS Operating expenses 817 836 Foreign exchange effect on 2025 operating expenses using 2024 rates 5 Operating
Slide 31: Reconciliation of IFRS to non-IFRS results
Reconciliation of IFRS to non-IFRS results Free Cash Flow (Unaudited) (in € millions) Three months ended September December March 31, June 30, September December March 31, June 30, September December March 31, June 30, September December March 31, 30, 2021 31, 2021 2022 2022 30, 2022 31, 2022 2023 2
Slide 32: Appendix
APPENDIX
Slide 33: Social Charges Sensitivity
Social Charges Sensitivity Meaningful movements in our stock price can lead to Social Charge variance Our guidance incorporates the impact of Social Charges, the vast majority of which appear in Operating Expenses. The amount of Social Charges we accrue for and ultimately pay can be volatile, as the
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