Spotify Technology S.A. (NYSE:SPOT):
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Dear Shareholders,
The business performed very well in the quarter. Nearly all of
our major metrics finished better than expected, including MAUs,
Revenue, Gross Margin, and Operating Income. Subscriber growth was
inline and importantly, ARPU growth increased Y/Y. Additionally, we
saw another quarter of significant advertising strength and user
engagement metrics across many markets showed encouraging signs of
growth. During the quarter, we generated positive Free Cash Flow of
€99 million.
MONTHLY ACTIVE USERS (“MAUs”)
Total MAUs grew 19% Y/Y to 381 million in the quarter, up from
365 million last quarter and near the top end of our guidance
range. We experienced double digit Y/Y growth in all regions with
particular strength in Rest of World where performance was aided by
the resumption of marketing activity in India along with above-plan
growth in the Philippines and Indonesia. We also saw improved
momentum across the 86 markets launched earlier this year, with
outperformance led by South Korea, Bangladesh, and Pakistan.
PREMIUM SUBSCRIBERS
Our Premium Subscribers grew 19% Y/Y to 172 million in the
quarter, up from 165 million last quarter and towards the midpoint
of the guidance range. We tested a Premium promotion in the third
quarter, which aided the typical seasonality of our business and
also helped offset the tough comp from the successful launch of
Russia and surrounding territories in Q3 last year.
This quarter we added several major promotional partnerships,
including HMD Global (Spotify preloads on select Nokia branded
smartphones and tablets across all 178 markets), LG U+ (offering 3
or 6 month trials in South Korea with one of the country’s largest
telcos), OnePlus (Spotify preloads on OnePlus mobile devices in
India with 3 or 6 month trials and a limited offer of 12 month
trials to OnePlus Red Cable Club members), PayMaya (supporting
pre-paid payment solutions for Spotify's daily, weekly and monthly
subscriptions and offering 7 day trials in the Philippines), and
Tinkoff (offering 3 month trials with Russia’s largest all-digital
bank). Additionally, we renewed our partnership with Spark, New
Zealand’s largest telco and digital services company, offering
bundling and reseller opportunities.
Our average monthly Premium churn rate for the quarter was down
sequentially and up Y/Y against last year’s historic low. We are
pleased with the trends in churn and continue to expect full year
2021 churn to be down versus 2020.
FINANCIAL METRICS
Revenue
Revenue of €2,501 million grew 27% Y/Y in Q3 (or 26% Y/Y on a
constant currency basis) and was at the top end of our guidance
range due to significant strength in advertising. Premium Revenue
grew 22% Y/Y to €2,178 million (or 21% Y/Y constant currency) while
Ad-Supported Revenue was particularly strong, growing 75% Y/Y to
€323 million (or 75% Y/Y constant currency).
Within Premium, average revenue per user (“ARPU”) of €4.34 in Q3
was up 4% Y/Y (or up 3% Y/Y constant currency vs. flat Y/Y in Q2).
Excluding the impact of FX, we saw a benefit to ARPU primarily from
our price increases.
Ad-Supported Revenue meaningfully outperformed, driven by higher
sold impressions, increased CPMs, and accelerated demand within the
Spotify Audience Network. The strength in advertising was
broad-based across all sales channels, with the United States and
United Kingdom meaningfully exceeding expectations. Our music
business was driven by growth in impressions, a meaningful
improvement in sell-through rate, and double-digit CPM growth. Our
Podcast business was driven by strong double-digit Y/Y growth at
existing Spotify studios (The Ringer, Parcast, Spotify Studios, and
Gimlet) along with the Megaphone acquisition and the exclusive
licensing of the Joe Rogan Experience, Armchair Expert with Dax
Shephard, and Call Her Daddy.
During Q3, the Spotify Audience Network continued to gain
traction in the United States while expanding into the United
Kingdom, Canada, and Australia. The Spotify Audience Network
continued to outperform in the quarter, driven by higher available
inventory and incremental revenue from international sales. Since
launch, the number of podcasts in our network has grown by more
than 50%, and nearly 1 in 5 Spotify advertisers are already
participating. The Spotify Audience Network will open to top
emerging podcast creators from Anchor in the coming weeks,
increasing the scale and reach for our advertisers.
Gross Margin
Gross Margin finished at 26.7% in Q3, above the top end of our
guidance range and reflecting nearly 200 bps of Y/Y expansion. The
Gross Margin improvement reflected a favorable revenue mix shift
towards podcasts, marketplace activity, improved music advertising
operating leverage, and Other Cost of Revenue efficiencies (e.g.
payment fees, streaming delivery costs), which were partially
offset by higher non-music and other content costs and publishing
rate increases.
Premium Gross Margin was 29.1% in Q3, up 182 bps Y/Y, and
Ad-Supported Gross Margin was 10.5% in Q3, up 993 bps Y/Y. As a
reminder, all content costs related to podcast investment are
included in the Ad-Supported business for the current and
historical periods.
Operating Expenses
Operating Expenses totaled €593 million in Q3, an increase of
12% Y/Y. Social Charges were below forecast given the decline in
our share price during the quarter. Additionally, personnel costs
came in lower than expected as well as certain marketing expenses.
Excluding the impact of Social Charge movements, Operating Expenses
were better than forecast and contributed to positive Operating
Income in the quarter.
As a reminder, Social Charges are payroll taxes associated with
employee salaries and benefits, including share-based compensation.
We are subject to social taxes in several countries in which we
operate, although Sweden accounts for the bulk of the social costs.
We don’t forecast stock price changes in our guidance so upward or
downward movements will impact our reported operating expenses.
At the end of Q3, our workforce consisted of 7,431 FTEs
globally.
Product and Platform
During the quarter, we continued to lean into the
personalization of our user experiences to help drive improved
intake, retention, conversion, and LTV. Key product rollouts
included: Blend (the ability for two users to merge their music
into one shared playlist), Enhance (the ability for Premium users
to add personalized recommendations to their playlists), Episodes
for You (episodic podcast level recommendations), and What’s New (a
feed that gathers all new releases from the artists and shows that
users follow).
In late August, we opened up our paid podcast subscriptions to
all US creators with intentions to expand internationally to both
more creators and users. Additionally, we announced the launch of
Q&A and polls for Anchor creators, which allows listeners to
respond to short questions posed by show creators. We also expanded
the rollout of the Music + Talk format to 15 new markets, bringing
this format to 21 markets around the world.
During the quarter, we advanced our product ubiquity efforts in
several areas. We announced a partnership with Delta Airlines that
allows passengers to discover Spotify-curated music and podcasts
within Delta’s in-flight entertainment system. Additionally, we
deepened our partnership with Roku, launching a pre-loaded playback
stack, Spotify Connect discoverability, video podcast playback, and
support for Roku’s voice assistant. In August, Spotify launched a
new smartwatch experience supporting offline and direct streaming
on Google’s new Wear OS 3 platform (deployed with key brands such
as Samsung, Fossil, and Mobvoi).
Within Two-Sided Marketplace, we continued to test Discovery
Mode with record labels and distributors, where we saw Q/Q growth
in customers and Gross Profit contribution. Sponsored
Recommendations (i.e. Marquee) also continued to gain traction
during the third quarter as we expanded into more international
markets including France, Monaco, Switzerland, Germany, Austria,
and Liechtenstein.
Content
At the end of Q3, we had 3.2 million podcasts on the platform
(up from 2.9 million at the end of Q2). The percentage of MAUs that
engaged with podcast content continued to increase throughout the
quarter, marking an acceleration relative to Q2 trends. Among MAUs
that engaged with podcasts in Q3, consumption trends remained
strong (up 20% Y/Y on a per user basis) while month-over-month
retention rates continued to trend positively. During the quarter,
podcast share of overall consumption hours on our platform also
reached an all-time high.
In the United States, we released 32 new Originals &
Exclusives (“O&E”) in the quarter, including the exclusivity
launches of Armchair Expert with Dax Sheppard and Call Her Daddy in
July. We also announced a multi-year audio content partnership
between The Ringer and WWE to develop original and exclusive audio
content, as well as live audio discussions hosted on Spotify
Greenroom after every big WWE pay-per-view event.
Internationally, we released 76 new O&E podcasts, with
notable traction in India and Latin America where Originals have
been helpful in stimulating new user acquisition. Top performing
shows in these markets include: Mythpat (India), Mano a Mano
(Brazil), Paciente 63 (Caso 63 adaptation in Brazil), and Virus
2062 (Caso 63 adaptation in India). In Sweden, we announced seven
new Spotify Originals from some of the most popular artists and
talents in the country, including Spotify’s first Swedish podcast
with video, Bakom micken med Filip Dikmen.
During the quarter, our music slate also saw significant new
release activity. In late August, Kanye West’s 10th studio album,
Donda, arrived, with 16 tracks from the album occupying the top 25
of the Spotify Global Top 50 daily chart and the entire top 10 of
the Spotify US Top 50. Drake also released his highly anticipated
6th studio album Certified Lover Boy, breaking the record for the
most-streamed album in a day in Spotify history with over 150
million streams. Spotify launched a global partnership with Drake
including an offer for fans and new users to stream the album free
on-demand for the first two weeks of release. Billie Eilish
released a long-anticipated album, Happier Than Ever, in late July
which included Spotify’s first-ever artist hub with Happier Than
Ever: The Destination. The Destination features three enhanced
albums with exclusive video and audio content from Billie across
the three playlists: Billie Mode, Lyric Mode, and Fan Mode. Other
major releases in the quarter included J Balvin’s album, JOSE,
Kacey Musgraves’ album, star-crossed, Lil Nas X’s album, Montero,
and NCT 127’s album, Sticker.
Free Cash Flow
Free Cash Flow was €99 million in Q3, a €4 million decrease Y/Y
primarily due to an increase in net income adjusted for non-cash
items, partially offset by higher working capital needs arising
from higher ad receivables, podcast-related payments, and licensor
payments. Capital expenditures decreased €8 million Y/Y largely due
to finalization of various office build outs in New York City,
Singapore, and LA.
At the end of Q3, we maintained a strong liquidity position with
€3.3 billion in cash and cash equivalents, restricted cash, and
short term investments.
Q4 2021 OUTLOOK
The following forward-looking statements reflect Spotify’s
expectations as of October 27, 2021 and are subject to substantial
uncertainty. The estimates below utilize the same methodology we’ve
used in prior quarters with respect to our guidance and the
potential range of outcomes. Given the extraordinary operating
circumstances we currently face with respect to the impact of
COVID-19, there is a greater likelihood of variances with respect
to those ranges than typical quarters.
Q4 2021 Guidance: We have maintained our prior Q4 guidance for
Total MAUs, Total Premium Subscribers, and Operating Profit/Loss,
and have increased the bottom end of the range for Total Revenue
and Gross Margin.
- ● Total MAUs: 400-407 million
- ● Total Premium Subscribers: 177-181 million
- ● Total Revenue: €2.54-€2.68 billion
- Assumes approximately 250 bps tailwind to growth Y/Y due to
movements in foreign exchange rates
- ● Gross Margin: 25.1-26.1%
- ● Operating Profit/Loss: €(152)-€(72) million
SHARE REPURCHASE PROGRAM
On August 20, 2021, Spotify announced a program to repurchase up
to $1.0 billion of its ordinary shares. The repurchase program will
expire on April 21, 2026. Through September 30, 2021, the company
repurchased 157,510 shares for €30 million under this program at an
average cost of $222.86 per share.
EARNINGS QUESTION & ANSWER SESSION
We will host a live question and answer session starting at 8
a.m. ET today on investors.spotify.com. Daniel Ek, our Founder and
CEO, and Paul Vogel, our Chief Financial Officer, will be on hand
to answer questions submitted through slido.com using the event
code #SpotifyEarningsQ321. Participants also may join using
the listen-only conference line by registering through the
following site:
Direct Event Registration Portal:
http://www.directeventreg.com/registration/event/5679825
We use investors.spotify.com and newsroom.spotify.com websites
as well as other social media listed in the “Resources – Social
Media” tab of our Investors website to disclose material company
information.
Use of Non-IFRS Measures
To supplement our financial information presented in accordance
with IFRS, we use the following non-IFRS financial measures:
Revenue excluding foreign exchange effect, Premium revenue
excluding foreign exchange effect, Ad-Supported revenue excluding
foreign exchange effect, and Free Cash Flow. Management believes
that Revenue excluding foreign exchange effect, Premium revenue
excluding foreign exchange effect, and Ad-Supported revenue
excluding foreign exchange effect are useful to investors because
they present measures that facilitate comparison to our historical
performance. However, Revenue excluding foreign exchange effect,
Premium revenue excluding foreign exchange effect, and Ad-Supported
revenue excluding foreign exchange effect should be considered in
addition to, not as a substitute for or superior to, Revenue,
Premium revenue, Ad-Supported revenue or other financial measures
prepared in accordance with IFRS. Management believes that Free
Cash Flow is useful to investors because it presents a measure that
approximates the amount of cash generated that is available to
repay debt obligations, to make investments, and for certain other
activities that exclude certain infrequently occurring and/or
non-cash items. However, Free Cash Flow should be considered in
addition to, not as a substitute for or superior to, net cash flows
(used in)/from operating activities or other financial measures
prepared in accordance with IFRS. For more information on these
non-IFRS financial measures, please see “Reconciliation of IFRS to
Non-IFRS Results” table.
Forward Looking Statements
This shareholder letter contains estimates and forward-looking
statements. All statements other than statements of historical fact
are forward-looking statements. The words “may,” “might,” “will,”
“could,” “would,” “should,” “expect,” “plan,” “anticipate,”
“intend,” “seek,” “believe,” “estimate,” “predict,” “potential,”
“continue,” “contemplate,” “possible,” and similar words are
intended to identify estimates and forward-looking statements.
Our estimates and forward-looking statements are mainly based on
our current expectations and estimates of future events and trends,
which affect or may affect our businesses and operations. Although
we believe that these estimates and forward-looking statements are
based upon reasonable assumptions, they are subject to numerous
risks and uncertainties and are made in light of information
currently available to us. Many important factors may adversely
affect our results as indicated in forward-looking statements.
These factors include, but are not limited to: our ability to
attract prospective users and to retain existing users; competition
for users, user listening time, and advertisers; risks associated
with our international expansion and our ability to manage our
growth; our ability to predict, recommend, and play content that
our users enjoy; our ability to effectively monetize our Service;
our ability to generate sufficient revenue to be profitable or to
generate positive cash flow and grow on a sustained basis; risks
associated with the expansion of our operations to deliver
non-music content, including podcasts, including increased
business, legal, financial, reputational, and competitive risks;
potential disputes or liabilities associated with content made
available on our Service; risks relating to the acquisition,
investment, and disposition of companies or technologies; our
dependence upon third-party licenses for most of the content we
stream; our lack of control over the providers of our content and
their effect on our access to music and other content; our ability
to comply with the many complex license agreements to which we are
a party; our ability to accurately estimate the amounts payable
under our license agreements; the limitations on our operating
flexibility due to the minimum guarantees required under certain of
our license agreements; our ability to obtain accurate and
comprehensive information about the compositions embodied in sound
recordings in order to obtain necessary licenses or perform
obligations under our existing license agreements; new copyright
legislation and related regulations that may increase the cost
and/or difficulty of music licensing; assertions by third parties
of infringement or other violations by us of their intellectual
property rights; our ability to protect our intellectual property;
the dependence of streaming on operating systems, online platforms,
hardware, networks, regulations, and standards that we do not
control; potential breaches of our security systems or systems of
third parties, including as a result of our Work From Anywhere
program; interruptions, delays, or discontinuations in service in
our systems or systems of third parties; changes in laws or
regulations affecting us; risks relating to privacy and protection
of user data; our ability to maintain, protect, and enhance our
brand; payment-related risks; our ability to hire and retain key
personnel, and challenges to productivity and integration as a
result of our Work From Anywhere program; our ability to accurately
estimate our user metrics and other estimates; risks associated
with manipulation of stream counts and user accounts and
unauthorized access to our services; tax-related risks; the
concentration of voting power among our founders who have and will
continue to have substantial control over our business; risks
related to our status as a foreign private issuer; international,
national or local economic, social or political conditions; risks
associated with accounting estimates, currency fluctuations and
foreign exchange controls; and the impact of the COVID-19 pandemic
on our business and operations, including any adverse impact on
advertising sales or subscriber revenue; risks related to our debt,
including limitations on our cash flow for operations and our
ability to satisfy our obligations under the Exchangeable Notes;
our ability to raise the funds necessary to repurchase the
Exchangeable Notes for cash, under certain circumstances, or to pay
any cash amounts due upon exchange; provisions in the indenture
governing the Exchangeable Notes delaying or preventing an
otherwise beneficial takeover of us; and any adverse impact on our
reported financial condition and results from the accounting
methods for the Exchangeable Notes. A detailed discussion of these
and other risks and uncertainties that could cause actual results
and events to differ materially from our estimates and
forward-looking statements is included in our filings with the U.S.
Securities and Exchange Commission (“SEC”), including our Annual
Report on Form 20-F filed with the SEC on February 5, 2021, as
updated by subsequently filed reports for our interim results on
Form 6-K. We undertake no obligation to update forward-looking
statements to reflect events or circumstances occurring after the
date of this shareholder letter.
Rounding
Certain monetary amounts, percentages, and other figures
included in this letter have been subject to rounding adjustments.
The sum of individual metrics may not always equal total amounts
indicated due to rounding.
Interim condensed consolidated
statement of operations
(Unaudited)
(in € millions, except share and per share
data)
Three months ended
Nine months ended
September 30, 2021
June 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
Revenue
2,501
2,331
1,975
6,979
5,712
Cost of revenue
1,833
1,668
1,486
5,100
4,272
Gross profit
668
663
489
1,879
1,440
Research and development
208
255
176
659
605
Sales and marketing
280
279
256
795
735
General and administrative
105
117
97
324
324
593
651
529
1,778
1,664
Operating income/(loss)
75
12
(40)
101
(224)
Finance income
101
21
14
226
90
Finance costs
(14)
(25)
(90)
(70)
(396)
Finance income/(costs) - net
87
(4)
(76)
156
(306)
Income/(loss) before tax
162
8
(116)
257
(530)
Income tax expense/(benefit)
160
28
(15)
252
(74)
Net income/(loss) attributable to
owners of the parent
2
(20)
(101)
5
(456)
Earnings/(loss) per share attributable
to owners of the parent
Basic
0.01
(0.10)
(0.53)
0.02
(2.44)
Diluted
(0.41)
(0.19)
(0.58)
(0.85)
(2.44)
Weighted-average ordinary shares
outstanding
Basic
191,485,473
191,172,946
188,842,828
191,077,975
186,821,414
Diluted
194,551,862
194,084,446
189,054,064
193,559,697
186,821,414
Condensed consolidated statement of
financial position
(Unaudited)
(in € millions)
September 30, 2021
December 31, 2020
Assets
Non-current assets
Lease right-of-use assets
443
444
Property and equipment
369
313
Goodwill
869
736
Intangible assets
91
97
Long term investments
1,090
2,277
Restricted cash and other non-current
assets
77
78
Deferred tax assets
13
15
2,952
3,960
Current assets
Trade and other receivables
571
464
Income tax receivable
5
4
Short term investments
725
596
Cash and cash equivalents
2,512
1,151
Other current assets
224
151
4,037
2,366
Total assets
6,989
6,326
Equity and liabilities
Equity
Share capital
—
—
Other paid in capital
4,681
4,583
Treasury shares
(201)
(175)
Other reserves
922
1,687
Accumulated deficit
(3,285)
(3,290)
Equity attributable to owners of the
parent
2,117
2,805
Non-current liabilities
Exchangeable Notes
1,175
—
Lease liabilities
582
577
Accrued expenses and other liabilities
37
42
Provisions
3
2
1,797
621
Current liabilities
Trade and other payables
774
638
Income tax payable
10
9
Deferred revenue
440
380
Accrued expenses and other liabilities
1,751
1,748
Provisions
16
20
Derivative liabilities
84
105
3,075
2,900
Total liabilities
4,872
3,521
Total equity and liabilities
6,989
6,326
Interim condensed consolidated
statement of cash flows
(Unaudited)
(in € millions)
Three months ended
Nine months ended
September 30, 2021
June 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
Operating activities
Net income/(loss)
2
(20)
(101)
5
(456)
Adjustments to reconcile net income/(loss)
to net cash flows
Depreciation of property and equipment and
lease right-of-use assets
24
23
21
69
65
Amortization of intangible assets
9
8
7
25
17
Share-based compensation expense
57
68
46
173
133
Finance income
(101)
(21)
(14)
(226)
(90)
Finance costs
14
25
90
70
396
Income tax expense/(benefit)
160
28
(15)
252
(74)
Other
(2)
3
(3)
3
3
Changes in working capital:
Increase in trade receivables and other
assets
(102)
(95)
(76)
(182)
(93)
Increase in trade and other
liabilities
82
30
155
45
243
(Decrease)/increase in deferred
revenue
(4)
17
20
50
50
(Decrease)/increase in provisions
(2)
—
7
(3)
6
Interest paid on lease liabilities
(13)
(13)
(13)
(37)
(43)
Interest received
1
2
—
3
3
Income tax paid
(2)
(1)
(2)
(5)
(8)
Net cash flows from operating
activities
123
54
122
242
152
Investing activities
Business combinations, net of cash
acquired
—
(42)
—
(101)
(137)
Purchases of property and equipment
(25)
(20)
(17)
(69)
(43)
Purchases of short term investments
(161)
(109)
(305)
(385)
(948)
Sales and maturities of short term
investments
63
134
197
287
916
Change in restricted cash
1
—
(2)
1
—
Other
1
(2)
(7)
(7)
(28)
Net cash flows used in investing
activities
(121)
(39)
(134)
(274)
(240)
Financing activities
Payments of lease liabilities
(9)
(8)
(6)
(25)
(16)
Lease incentives received
7
—
6
7
13
Proceeds from exercise of stock
options
26
26
96
103
274
Proceeds from issuance of Exchangeable
Notes, net of costs
—
—
—
1,223
—
Proceeds from issuance of warrants
31
—
—
31
—
Repurchases of ordinary shares
(24)
—
—
(24)
—
Payments for employee taxes withheld from
restricted
stock unit releases
(12)
(12)
(11)
(40)
(19)
Net cash flows from financing
activities
19
6
85
1,275
252
Net increase in cash and cash
equivalents
21
21
73
1,243
164
Cash and cash equivalents at beginning of
the period
2,440
2,442
1,148
1,151
1,065
Net foreign exchange gains/(losses) on
cash and cash equivalents
51
(23)
(39)
118
(47)
Cash and cash equivalents at period
end
2,512
2,440
1,182
2,512
1,182
Calculation of basic and diluted
earnings/(loss) per share
(Unaudited)
(in € millions, except share and per share
data)
Three months ended
Nine months ended
September 30, 2021
June 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
Basic earnings/(loss) per share
Net income/(loss) attributable to owners
of the parent
2
(20)
(101)
5
(456)
Share used in computation:
Weighted-average ordinary shares
outstanding
191,485,473
191,172,946
188,842,828
191,077,975
186,821,414
Basic earnings/(loss) per share
attributable to owners of the parent
0.01
(0.10)
(0.53)
0.02
(2.44)
Diluted loss per share
Net income/(loss) attributable to owners
of the parent
2
(20)
(101)
5
(456)
Fair value gains on dilutive warrants
(30)
—
(9)
(51)
Fair value gains on dilutive Exchangeable
Notes
(52)
(17)
—
(117)
—
Net loss used in the computation of
diluted loss per share
(80)
(37)
(110)
(163)
(456)
Shares used in computation:
Weighted-average ordinary shares
outstanding
191,485,473
191,172,946
188,842,828
191,077,975
186,821,414
Warrants
154,889
—
211,236
229,029
—
Exchangeable Notes
2,911,500
2,911,500
—
2,252,693
—
Diluted weighted-average ordinary
shares
194,551,862
194,084,446
189,054,064
193,559,697
186,821,414
Diluted loss per share attributable
to owners of the parent
(0.41)
(0.19)
(0.58)
(0.85)
(2.44)
Reconciliation of IFRS to Non-IFRS
Results
(Unaudited)
(in € millions, except percentages)
Three months ended
Nine months ended
September 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
IFRS revenue
2,501
1,975
6,979
5,712
Foreign exchange effect on 2021 revenue
using 2020 rates
15
(180)
Revenue excluding foreign exchange
effect
2,486
7,159
IFRS revenue year-over-year change %
27
%
22
%
Revenue excluding foreign exchange effect
year-over-year change %
26
%
25
%
IFRS Premium revenue
2,178
1,790
6,165
5,248
Foreign exchange effect on 2021 Premium
revenue using 2020 rates
16
(142)
Premium revenue excluding foreign exchange
effect
2,162
6,307
IFRS Premium revenue year-over-year change
%
22
%
17
%
Premium revenue excluding foreign exchange
effect year-over-year change %
21
%
20
%
IFRS Ad-Supported revenue
323
185
814
464
Foreign exchange effect on 2021
Ad-Supported revenue using 2020 rates
(1)
(38)
Ad-Supported revenue excluding foreign
exchange effect
324
852
IFRS Ad-Supported revenue year-over-year
change %
75
%
75
%
Ad-Supported revenue excluding foreign
exchange effect year-over-year change %
75
%
84
%
Free Cash Flow
(Unaudited)
(in € millions)
Three months ended
Nine months ended
September 30, 2021
June 30, 2021
September 30, 2020
September 30, 2021
September 30, 2020
Net cash flows from operating
activities
123
54
122
242
152
Capital expenditures
(25)
(20)
(17)
(69)
(43)
Change in restricted cash
1
—
(2)
1
—
Free Cash Flow
99
34
103
174
109
1 Free Cash Flow is a non-IFRS measure. See “Use of Non-IFRS
Measures” and “Reconciliation of IFRS to Non-IFRS Results” for
additional information.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20211027005313/en/
Investor Relations: Bryan Goldberg Lauren Katzen ir@spotify.com
Public Relations: Dustee Jenkins press@spotify.com
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