Spotify Technology S.A. Set to Unveil Q2 2023 Earnings Results: A Closer Look at What to Expect
August 27, 2023
🌥️Introduction:
Music streaming giant Spotify Technology S.A. is gearing up to announce its highly anticipated Q2 2023 earnings results on July 25, 2023, at 8:00 AM EST. With analysts eagerly awaiting the numbers, let’s delve into a comprehensive analysis of the company’s fundamentals, technical indicators, historical guidance, and analysts’ estimates to provide a well-rounded picture before the earnings call.
Fundamental Analysis:
| ReportDate | NetIncome | TotalRevenue | DilutedEPS | unit | |
|---|---|---|---|---|---|
| Q2 | 2023-06-30 | -302.0 | 3177.0 | -1.55 | million EUR |
| Q1 | 2023-03-31 | -225.0 | 3042.0 | -1.16 | million EUR |
| Q4 | 2022-12-31 | -270.0 | 3166.0 | -1.40 | million EUR |
| Q3 | 2022-09-30 | -166.0 | 3036.0 | -0.99 | million EUR |
| Q2 | 2022-06-30 | -125.0 | 2864.0 | -0.85 | million EUR |
When it comes to fundamentals, Spotify has shown a consistent increase in net income and total revenue over the past year. In Q2 2023, the company reported a net income of -302.0 million EUR, with total revenue reaching 3,177.0 million EUR. While the net income figure might seem concerning at first glance, it’s essential to consider the company’s growth trajectory and its focus on expanding its user base.
Moreover, Spotify’s diluted EPS for Q2 2023 stood at -1.55 million EUR. This figure indicates the loss per share during the quarter but should be analyzed in the context of the company’s larger strategic goals and its ability to leverage its vast user base for future profitability.
Historical Guidance:
Examining Spotify’s previous quarterly earnings reports can provide valuable insights into the company’s performance trends. Looking back at Q1 2023, we note a net income of -225.0 million EUR, with total revenue amounting to 3,042.0 million EUR. While the net income figure remains negative, it is essential to observe whether Spotify is consistently narrowing its losses and making progress towards profitability.
In terms of diluted EPS, Spotify reported -1.16 million EUR in Q1 2023. By comparing this figure with the estimate for Q2 2023 of -0.34 million EUR, we can assess whether the company is moving closer to the break-even point.
Analysts Estimates:
Turning our attention to the analysts’ estimates, MorningStar consensus data reveals a positive trend in adjusted EPS expectations for Spotify’s Q2 2023 earnings. The current estimate of -0.34 million EUR reflects an improvement from earlier predictions. Seven days, thirty days, sixty days, and ninety days ago, analysts estimated an adjusted EPS of -0.53 million EUR. This consistent upward revision indicates growing optimism among industry experts regarding Spotify’s financial performance.
Technical Analysis:
| since | low | high | change | change% | |
|---|---|---|---|---|---|
| 1D | 2023-08-25 | 133.7 | 138.8 | 1.5 | 1.1 |
| 5D | 2023-08-21 | 130.0 | 140.3 | 4.7 | 3.6 |
| 1M | 2023-07-27 | 129.2 | 152.8 | -7.3 | -5.1 |
| 3M | 2023-05-30 | 129.2 | 182.0 | -10.8 | -7.3 |
Analyzing Spotify’s past three-month price performance in USD unveils a mixed picture. While there has been some volatility in the stock price, recent trends show an uptick in value. For example, over the past five trading days, Spotify’s stock price experienced a 3.6% increase, driven by positive market sentiment.
However, it’s worth noting that the company faced a decline of 7.3% over the course of one month, suggesting potential market fluctuations and investor uncertainty. On a more positive note, Spotify has demonstrated a long-term growth trend, with the stock price reaching a high of 182.0 USD three months ago.
Conclusion:
As Spotify Technology S.A.‘s Q2 2023 earnings call approaches, investors and industry enthusiasts are brimming with anticipation. While the company has experienced losses in recent quarters, it’s crucial to consider its growth trajectory, expanding user base, and increasing revenue stream.
With upward revisions in adjusted EPS estimates and recent positive sentiment surrounding the upcoming earnings call, there is optimism about Spotify’s performance going forward.
Investors and stakeholders would be wise to tune in to the earnings call on July 25, 2023, at 8:00 AM EST to gain valuable insights into Spotify’s financials and strategic plans for future growth. As the company continues to revolutionize the music streaming industry and explore new avenues, this earnings call will provide valuable information for anyone interested in staying ahead of the curve in the digital music landscape.
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