- Total Monthly Active Users (MAUs) increased from 422M in Q1 2022 to 515M in Q1 2023 (Y/Y growth: 22%).
- Premium Subscribers grew from 182M in Q1 2022 to 210M in Q1 2023 (Y/Y growth: 15%).
- Ad-Supported MAUs increased from 252M in Q1 2022 to 317M in Q1 2023 (Y/Y growth: 26%).
- Premium revenue increased from €2,379M in Q1 2022 to €2,713M in Q1 2023 (Y/Y growth: 14%).
- Ad-Supported revenue grew from €282M in Q1 2022 to €329M in Q1 2023 (Y/Y growth: 17%).
- Total Revenue increased from €2,661M in Q1 2022 to €3,042M in Q1 2023 (Y/Y growth: 14%).
- Gross Profit grew from €671M in Q1 2022 to €766M in Q1 2023 (Y/Y growth: 14%).
- Gross Margin remained relatively stable, ranging from 24.6% to 25.3% over the period.
- Operating Income remained negative, with an Operating Margin ranging from (0.2%) to (7.5%).
FREE CASH FLOW & LIQUIDITY SUMMARY:
- Net Cash Flows From Operating Activities ranged from €37M to (€70M) over the period.
- Free Cash Flow ranged from €22M to (€73M) over the period.
- Cash & Cash Equivalents, Restricted Cash & Short Term Investments remained stable, ranging from €3.4B to €3.7B.
- Exceptionally strong user growth in Q1, with Total Monthly Active Users (MAUs) reaching 515 million.
- Largest Q1 net additions in history (26 million quarter over quarter), second largest all time (after Q4 of last year).
- Record Q1 net additions across nearly all age demographics in both developed and developing regions.
- Premium Subscribers reached 210 million, 3 million ahead of guidance, with strength across all regions.
- Strong engagement trends, including year over year growth in content hours per MAU and positive trends in DAU/MAU ratio and churn.
- Revenue grew 14% Y/Y to over €3.0 billion, slightly behind forecast due to modest underperformance in advertising.
- First Q1 in Spotify history with over $300 million in ad revenue.
- Gross Margin of 25.2%, above guidance by 30 basis points.
- Operating Expenses growth lower than forecast, Operating Loss ahead of guidance by €38 million (includes €44 million of severance charges).
- Positive Free Cash Flow of €57 million in Q1.
- Forecasting 530 million MAUs (increase of 15 million) and 217 million subscribers (increase of 7 million).
- Forecasting €3.2 billion in Total Revenue, Gross Margin of roughly 25.5%, and Operating Loss of approximately €129 million.
- Currency translation benefits expected to reverse in Q2 due to weakening US dollar relative to Euro (300 bp headwind to growth).
- Excluding currency effect, constant currency Revenue would be closer to €3.3 billion (14% Y/Y growth vs. 13% in Q1).
- Expecting steady ramp in Gross Margins and sequential improvements in Operating Loss throughout 2023.