Slide 1: Q3 2022 Update
Q3 2022 Update October 25th, 2022 1
Slide 2: Table of Contents
Table of Contents Key Highlights Financial Summary MAUs & Subscribers Product & Platform Outlook Financial Statements Executive Summary p.03 p.04 p.06 p.13 p.16 p.21 p.24 22
Slide 3: Executive Summary
Executive Summary The major ty of our key metr cs surpassed gu dance n 03'22, ed by MAU and Subscr ber outperformance and hea thy Revenue growth. S m ar to ast quarter, MAU growth saw notab e acce erat on, w th net add t ons reach ng a record 03 h gh of 23 m on, wh e Subscr bers came n 1 m on ahead
Slide 4: Key Highlights
road based outperformance on MAUs and Subscribers Key Highlights 21 Y/Y Revenue growth driven by Premium Audiobooks launched in the United States MAUs grew 20% Y/Y to 456 m on, Tota Revenue grew 21% Y/Y aunched the f rst terat on of 6 m on above gu dance. Net to 3.0 b on Aud obooks n the Spot fy app
Slide 5: Key Highlights: Actuals vs. Guidance
Key Highlights: Actuals vs. uidance Premium Subscribers M Users Financials Monthly Active Users M Above Above 456 195 Results Q3 2022 Actuals uidance 450 194 Results Q3 2022 Actuals uidance Total Revenue €M Above €3,036 €3,000 ross Margin elow 24. 25.2 Operating Loss /Income €M elow € 228 € 218 5
Slide 6: Financial Summary
FINANCIAL SUMMARY 6
Slide 7: Financial Summary
Financial Summary Free Cash F ow s a non lFRS measure. See "Use of Non lFRS Measures" and "Reconc at on of lFRS to Non lFRS Resu ts" for add t ona nformat on. 456 195 273 2,651 385 3,036 750 24. 228 7.5% 40 35 3.7 USER, FINANCIAL & LIQUI ITY SUMMARY Q3 2021 Q4 2021 Q1 2022 Q2 2022 USERS M Q3 2022 Y/
Slide 8: Revenue, Profitability, Free Cash Flow & Liquidity
Revenue Profitability Free Cash Flow & Liquidity Revenue of 3,036 m on grew 21% Y/Y n 03 or 12% Y/Y constant currency , ref ect ng: Prem um Revenue growth of 22% Y/Y or 13% Y/Y constant currency , ed by subscr ber ga ns and Ad Supported Revenue growth of 19% Y/Y or 3% Y/Y constant currency , ed by p
Slide 9: Revenue
Revenue Resilient Premium growth, led by subscribers Prem um Revenue grew 22% Y/Y to 2,651 m on, ref ect ng subscr ber growth of 13% Y/Y and Prem um ARPU growth of 7% Y/Y to 4.63 or down 1% constant currency . Exc ud ng the mpact of FX, ARPU performance was mpacted by market m x. Ad Supported growth
Slide 10: Gross Margin
Prem um Gross Marg n was 28.0% n 03, down 104 bps Y/Y, ref ect ng Marketp ace growth, offset by product enhancement spend, ncreased pub sh ng rates and the change n accrua s. ross Margin Marketplace and Podcasting benefits offset by content/product investments and accruals Gross Marg n f n shed at 2
Slide 11: Operating Expenses
unfavorable FX impact Operat ng Expenses grew 65% Y/Y or 51% constant currency , arge y ref ect ng var ous growth n t at ves that were green t toward the end of 2021 and the mpact of recent acqu s t ons such as Pods ghts, F ndaway, Sonant c, Chartab e, Whooshkaa and Heard e. Add t ona y, Y/Y compar
Slide 12: Free Cash Flow
Free Cash Flow The 10th quarter in a row of positive FCF Free Cash F ow was 35 m on n 03, a decrease Y/Y as ower Net lncome adjusted for non cash tems was part a y offset by favorab ty n net work ng cap ta . Cap ta expend tures decreased 20 m on Y/Y to 5 m on as a resu t of the comp et on of off ce
Slide 13: MAUs & Subscribers
MAUS & SU SCRI ERS 13
Slide 14: Monthly Active Users
Tota MAUs grew 20% Y/Y to 456 m on, up from 433 m on ast quarter and above our gu dance by 6 m on. 0uarter y performance versus our gu dance was mpacted by: Outperformance across a reg ons etter than expected ntake n lnd a as a resu t of a mu t med a market ng campa gn dr v ng act vat ons and react
Slide 15: Premium Subscribers
Our Prem um Subscr bers grew 13% Y/Y to 195 m on, up from 188 m on ast quarter. 0uarter y performance versus our gu dance was mpacted by: Outperformance across a reg ons ed by at n Amer ca etter than expected 03 promot ona campa gn resu ts across a reg ons Cont nued strength n mu t user p ans Premiu
Slide 16: Product & Platform
PRODUCT & PLATFORM 16
Slide 17: Audiobooks
Audiobooks me ava ab e to Spot fy steners n the Un ted States. of the aud obooks exper ence for users on Spot fy and de preex st ng mus c and podcast content At the end of September, the ab ty to purchase and sten to more than 300,000 aud obooks t t es beca e ava ab e to Spot fy steners n the Un ted
Slide 18: Two Sided Marketplace & Podcasting
Two Sided Marketplace & Podcasting Two Sided Marketplace ur ng the quarter, Sponsored Recommendat ons cont nued to exh b t strength w th tr p e d g t Y/Y growth n tota campa gn vo ume and n 03 we saw the argest campa gn to date for the serv ce. The strength n Sponsored Recommendat ons was dr ven by
Slide 19: FC Barcelona Partnership Kicks Off
FC arcelona Partnership Kicks Off K cked off our partnersh p w th FC arce ona by showcas ng 14 art sts from 8 markets across the on stad um nventory, reach ng tens of m ons of TV v ewers and 90,000+ fans n the stad um at each of the three a ga matches n August and September. 19
Slide 20: New Home Feed
New Home Feed ln August, we ro ed out a new Home feed to users a ow ng for more persona zed d scovery of Mus c and Podcasts. 20
Slide 21: Outlook
OUTLOOK VW \ oi) at LJ WEN
Slide 22: Outlook for Q4'22
Outlook for Q4'22 The following forward looking statements reflect Spotify's expectations for Q4 2022 as of October 25, 2022 and are subject to substantial uncertainty. Total Premium Subscribers Total Revenue Gross Margin €3.2 billion 202 million 24.5 lmp es the add t on of approx mate y 23 m on net
Slide 23: Webcast Information
Webcast Information We w host a ve quest on and answer sess on start ng at 4:30 p.m. ET today on nvestors.spot fy.com. an e Ek, our Founder and CEO, and Pau Voge , our Ch ef F nanc a Off cer, w be on hand to answer quest ons subm tted through s do.com us ng the event code #Spot fyEarn ngs0322. Part
Slide 24: Financial Statements
STATEMENTS FINANCIAL 24
Slide 25: Trending Charts: MAUs, Subscribers & Revenue by Segment
Trending Charts MAUs, Ad Supported Users, Premium Subscribers & Revenue BySegment * 2 25
Slide 26: Trending Charts: Gross Profit, Margin & Free Cash Flow
Trending Charts Gross Profit By Segment, Gross Margin By Segment & Free Cash Flow * ast Twe ve Months TM represents annua performance cover ng the preced ng 12 months re at ve to the ast day of the quarter. 26
Slide 27: Condensed consolidated statement of operations
Condensed consolidated statement of operations September 30, 2022 June 30, 2022 September 30, 202 September 30, 2022 September 30, 202 ross pro it 0 0 2, 2 , 3 2, 3 , perating oss in ome 22 2 0 inan e in ome osts net 0 3 oss in ome be ore ta 0 2 2 Net oss in ome attributab e to o ners o the parent 2
Slide 28: Condensed consolidated statement of financial position
2, 3 2, Current assets , ,3 2 Tota assets , 32 , 0 Equity and iabi ities Equity Equity attributab e to o ners o the parent 2,233 2, Non urrent iabi ities , , 2 Current iabi ities 3, 3,22 Tota iabi ities ,3 ,0 Tota equity and iabi ities , 32 , 0 Condensed onso idated statement o inan ia position (Una
Slide 29: Condensed consolidated statement of cash flows
Nine months ended perating a tivities j : Net ash o s rom operating a tivities Investing a tivities Net ash o s used in investing a tivities inan ing a tivities Net ash o s used in rom inan ing a tivities Net de rease in rease in ash and ash equiva ents Cash and ash equiva ents at period end Septemb
Slide 30: Calculation of basic and diluted earnings per share
Basi oss earnings per share Share used in computation: Basi oss earnings per share attributab e to o ners o the parent 0 0 0 0 0 3 0 02 Di uted oss per share Net oss used in the omputation o di uted oss per share 0 3 3 : Di uted eighted average ordinary shares , , 3 , , 32 , , 2 , , 3, , Di uted oss
Slide 31: Revenue on a constant currency basis
Three months ended Nine months ended September 30, 2022 September 30, 202 September 30, 2022 September 30, 202 Revenue on a onstant urren y basis (Unaudited) (in € millions, except percentages) Re on i iation o I RS to non I RS resu ts 32
Slide 32: Free Cash Flow reconciliation
ree Cash o (Unaudited) (in € millions) Three months ended ar h 3 , 20 June 30, 20 September 30, 20 De ember 3 , 20 ar h 3 , 2020 June 30, 2020 September 30, 2020 De ember 3 , 2020 ar h 3 , 202 June 30, 202 September 30, 202 De ember 3 , 202 ar h 3 , 2022 June 30, 2022 September 30, 2022 ree Cash o 3
Slide 33: Operating expenses on a constant currency basis
perating e penses on a onstant urren y basis (Unaudited) (in € millions, except percentages) Three months ended September 30, 2022 September 30, 202 Three months ended September 30, 2022 September 30, 202 Three months ended September 30, 2022 September 30, 202 Three months ended September 30, 2022 S
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