Slide 1: Q4 2024 Update
Q4 2024 Update February 4th, 2025
Slide 2: 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.21 Financial Statements p.24 2
Slide 3: Executive Summary
Executive Summary We ended 2024 with strong Q4 performance, as nearly all USER & FINANCIAL SUMMARY Q4 2023 Q3 2024 Q4 2024 Y/Y Q/Q of our KPIs exceeded guidance and profitability reached record levels. MAU net additions of 35 million marked the USERS (M) Total Monthly Active Users ("MAUs") 602 640 6
Slide 4: Key Highlights
Key Highlights Record net additions drive Continued top-line strength Largest ever Wrapped, double digit Y/Y growth in drives first full year of expanding video experience MAUs and Subscribers Operating Income profitability and record music payouts ● MAUs grew 12% Y/Y to 675 million, ● Total Revenue
Slide 5: Key Highlights: Actuals vs. Guidance
Key Highlights: Actuals vs. Guidance Results Q4 2024 Actuals Guidance Monthly Active Users (M) Above 675 665 Users Premium Subscribers (M) Above 263 260 Results Q4 2024 Actuals Guidance Total Revenue (€B) Above €4.2 €4.1 Financials Gross Margin Above 32.2% 31.8% Operating Income (€M)* Below €477 €48
Slide 6: Financial Summary
FINANCIAL SUMMARY
Slide 7: Financial Summary
Financial Summary USER, FINANCIAL & LIQUIDITY SUMMARY Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Y/Y Y/Y FXN* USERS (M) Total Monthly Active Users ("MAUs") 602 615 626 640 675 12% -- Premium Subscribers 236 239 246 252 263 11% -- Ad-Supported MAUs 379 388 393 402 425 12% -- FINANCIALS (€M) Premium 3,17
Slide 8: Financial Summary
Financial Summary Revenue of €4,242 million grew 16% Y/Y in Q4 (or 17% Y/Y constant currency*), reflecting: Revenue ● Premium Revenue growth of 17% Y/Y (or 19% Y/Y constant currency*), driven by subscriber gains and ARPU increases; and ● Ad-Supported Revenue growth of 7% Y/Y (or 6% Y/Y constant curr
Slide 9: Revenue
Revenue Premium growth driven by Subscriber and ARPU gains Premium Revenue grew 17% Y/Y to €3,705 million (or 19% Y/Y constant currency*), reflecting subscriber growth of 11% Y/Y and a Premium ARPU increase of 5% Y/Y to €4.85 (or up 7% 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 32.2% in Q4, up 555 Premium Gross Margin was 34.7% in Q4, up Ad-Supported Gross Margin was 15.1% bps Y/Y. The Y/Y trend was driven by 565 bps Y/Y. The Y/Y trend was driven by in Q4, up 351
Slide 11: Operating Expenses
Operating Expenses Y/Y declines led by efficiency initiatives Operating Expenses declined 16% Y/Y in Q4. Currency movements and changes in Social Charge movements elevated Y/Y Operating Expense growth by ~200 bps and ~700 bps, respectively, while the lapping of prior year efficiency charges contribu
Slide 12: Free Cash Flow
Free Cash Flow Record performance aids balance sheet strength Free Cash Flow* was €877 million in Q4, a record high as a result of higher Net Income adjusted for non-cash items and a positive contribution from net working capital. Capital expenditures rose €5 million Y/Y to €6 million. While the mag
Slide 13: MAUs & Subscribers
MAUS & SUBSCRIBERS
Slide 14: Monthly Active Users (MAUs)
Monthly Active Users (MAUs) Total MAUs grew 12% Y/Y to 675 million, up from 640 million last quarter and 10 million above our guidance. Quarterly performance reflected: ● Y/Y and Q/Q growth across all regions, led by Rest of World and Latin America ● Strong holiday and Wrapped Campaigns ● Shifts in
Slide 15: Premium Subscribers
Premium Subscribers Our Premium Subscribers grew 11% Y/Y to 263 million, up from 252 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 ● Strong holiday and Wrapped Campaigns ● Shifts i
Slide 16: Product & Platform
PRODUCT & PLATFORM
Slide 17: 10th Annual Wrapped Campaign
10th Annual Wrapped Campaign Celebrated our biggest Spotify Wrapped campaign ever, which delivered record-high user engagement (+10% Y/Y) across 184 markets and 53 languages. The 2024 campaign included personalized data stories and playlists, a custom AI DJ Wrapped experience, Artist and Podcaster C
Slide 18: Delivering a Best-In-Class Video Experience
Delivering a Best-In-Class Video Experience Launched the Spotify Partner Program, a new Evolved Spotify for Podcasters to Spotify Unveiled a new video podcast offering for monetization program for creators hosted on Spotify, for Creators, opening up the Spotify Partner Premium Subscribers in the Uni
Slide 19: Expanding Features for Creators and Consumers
Expanding Features for Creators and Consumers Launched Spotify for Authors, giving Rolled-out Custom playlist covers in Beta, Introduced Offline Backup, enabling authors and publishers better tools, insights giving users the ability to create their own Premium users to access tracks without an and d
Slide 20: A Decade of Getting the World to Value Music
A Decade of Getting the World to Value Music In 2024, Spotify alone paid out a record $10 billion in royalties to the music industry—totaling nearly $60 billion since our founding.
Slide 21: Outlook
OUTLOOK
Slide 22: Outlook for Q1'25
Outlook for Q1’25 The following forward-looking statements reflect Spotify’s expectations for Q1 2025 as of February 4, 2025 and are subject to substantial uncertainty. Total MAUs 678 million Implies the addition of approximately 3 million net new MAUs in the quarter Total Premium Subscribers 265 mi
Slide 23: 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 24: Financial Statements
FINANCIAL STATEMENTS
Slide 25: 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 26: 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 27: Consolidated statement of operations
Consolidated statement of operations (Unaudited) (in € millions, except share and per share data) Three months ended Twelve months ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Revenue 4,242 3,988 3,671 15,673 13,247 Cost of revenue 2,874 2,748 2,69
Slide 28: Consolidated statement of financial position
Consolidated statement of financial position (Unaudited) (in € millions) December 31, 2024 December 31, 2023 Assets Non-current assets Lease right-of-use assets 226 300 Property and equipment 188 247 Goodwill 1,201 1,137 Intangible assets 48 84 Long term investments 1,635 1,215 Restricted cash and o
Slide 29: Consolidated statement of cash flows
Consolidated statement of cash flows (Unaudited) (in € millions) Three months ended Twelve months ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Operating activities Net income/(loss) 367 300 (70) 1,138 (532) Adjustments to reconcile net income/(loss
Slide 30: Calculation of basic and diluted earnings/(loss) per share
Calculation of basic and diluted earnings/(loss) per share (Unaudited) (in € millions, except share and per share data) Three months ended Twelve months ended December 31, 2024 September 30, 2024 December 31, 2023 December 31, 2024 December 31, 2023 Basic earnings/(loss) per share Net income/(loss)
Slide 31: 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 Twelve months ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 IFRS revenue 4,242 3,671 15,673 13,247 Foreign exchange effec
Slide 32: 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 Twelve months ended December 31, 2024 December 31, 2023 December 31, 2024 December 31, 2023 IFRS Operating expenses 891 1,055 3,359 3,843 Fore
Slide 33: Reconciliation of IFRS to non-IFRS results
Reconciliation of IFRS to non-IFRS results Free Cash Flow (Unaudited) (in € millions) Three months ended June 30, September December March 31, June 30, September December March 31, June 30, September December March 31, June 30, September December 2021 30, 2021 31, 2021 2022 2022 30, 2022 31, 2022 20
Slide 34: Appendix
APPENDIX
Slide 35: Annual Financial Summary
Annual Financial Summary USER, FINANCIAL & LIQUIDITY SUMMARY 2020 2021 2022 2023 2024 Y/Y Y/Y FXN* USERS (M) Total Monthly Active Users ("MAUs") 345 406 489 602 675 12% -- Premium Subscribers 155 180 205 236 263 11% -- Ad-Supported MAUs 199 236 295 379 425 12% -- FINANCIALS (€M) Premium 7,135 8,460
Slide 36: 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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