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Spotify [NYSE:SPOT] Earnings Report Today: What To Expect

Spotify new rectangleWall Street analysts are bullish, as Spotify nears its first earnings report as a public company, after the market closes today. Goldman Sachs, JPMorgan, Evercore and Morgan Stanley predict a $190 stock price. 

Spotify stock was trading at $169 up 2.5% in early trading Wednesday.

Some hints as to what Spotify will highlight on today's earning call came during a recent press event. Last week, the company announced a major expansion of its free music service, "assisted playlists" and new data saving features.

Subscribers, Usage, Earnings & Profits

Today's 5PM ET call is really all about the numbers, including subscribers, usage, earning and profits. Stifel analyst John Egbert, whose "Buy" rating comes with a more conservative $180 price target, says that Spotify is modeling to report these metrics: 

  • Spotify New $75 million premium subscribers
  • Total monthly active users of 169.3 million
  • Total revenue of $1.36 billion in the U.S. dollar equivalent
  • $317.6 million in gross profit
  • 23.2% gross profit margin
  • operating loss of $87.5 million

Live Tweeting & Looking For Answers

@Hypebot will be live tweeting today's earnings call and looking for answers which will help understand where Spotify is headed in the coming months. 

  • Twitter-musicAre there plans for price increases like the test coming next month of a 10% bump in Norway?
  • Do they sahe numbers that show how the expanded free tier is driving new users, paid subscriptions and ad revenue? Or it it too soon? 
  • Is there any breakdown of subscribers and subscriber growth, particularly per region>
  • How the increased competition affecting Spotify?
  • What are the plans for new acquisition Loudr?
  • Commentary on Music Modernization Act
  • Hints at future plans for more voice control, hi-def audio,  and the rumored in-car listening device
  • Do they announce any new features for creators that keep CEO Daniel Ek's recent pledge to enable "a million creative artists the opportunity to live off their art"?

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