Looming rate of interest hikes have triggered a dramatic rotation away from high-growth tech shares because the starting of the 12 months, and streaming big Spotify (NYSE: SPOT) isn’t any exception. The music platform is down nearly 20% year-to-date (YTD) amidst widespread market volatility.
This hasn’t been helped by the latest controversy surrounding its unique contract with the ‘Joe Rogan Expertise’ podcast, with many high-profile musicians eradicating their content material from the platform in protest of the podcast’s alleged spreading of misinformation.
With the corporate set to report earnings this week, buyers might be hoping for some optimistic information to take over the headlines following a tumultuous week for the agency.
When is Spotify’s This autumn earnings date?
Spotify is ready to report its fourth-quarter 2021 earnings at 4:30 PM EST on Wednesday, February 2, 2022.
How do I hearken to Spotify’s earnings name?
Spotify’s earnings name might be webcast reside on the businesses personal investor relations page. A full replay of the webcast may also be made accessible following the session. The decision transcript, in addition to the shareholder’s letter and the monetary statements for the quarter, will all be made accessible on the identical investor relations web page.
What to anticipate from Spotify’s earnings
A lot was product of Netflix’s latest announcement that subscriber progress had slowed considerably within the final quarter. This despatched shockwaves throughout Wall Avenue as buyers started to query any and all subscription-based streaming companies. Spotify is now underneath intense scrutiny to ship on its subscriber price to keep away from the identical destiny as Netflix — a greater than 20% drop in inventory value immediately after its earnings name.
Spotify does have a security internet, nevertheless — its promoting income. Regardless of its premium, ad-free subscription being far more priceless to the corporate, its free tier nonetheless maintains a 9% gross revenue margin. The corporate has 381 million month-to-month energetic customers, of which 209 million use the corporate’s free providing. Ought to subscriber progress sluggish, buyers can take solace in the truth that the corporate can nonetheless generate income by means of its important variety of non-premium customers.
Shareholders may also be keen to listen to how the corporate plans to proceed to innovate. Spotify has made a concerted effort to develop its podcast choices all through 2021, with a number of acquisitions made to broaden its means to supply and distribute spoken-word media. Buyers might be on the lookout for an replace on how these purchases have faired, notably with respect to producing month-to-month customers.
Spotify is anticipated to put up income of $2.96 billion with an estimated loss per share of $0.47, which might signify high quality progress from figures of $2.56 billion and -$0.78 respectively from the year-ago quarter.
