Spotify Technology S.A. (NYSE:SPOT) today reported financial
results for the first fiscal quarter of 2021 ending March 31,
2021.
This press release features multimedia. View
the full release here:
https://www.businesswire.com/news/home/20210428005327/en/
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Dear Shareholders,
We are pleased with our performance in Q1. The business
delivered subscriber growth and Gross Margin at the top end of our
guidance range, a continued improvement in ARPU, and operating
income better than plan. We saw greater MAU variability this
quarter, but results were within our range of expectations given
the outperformance in Q4 and the continued impact from COVID-19.
Revenue grew by 16% (22% excluding the impact of FX) and was at the
upper end of our guidance range. Other highlights from the quarter
include a successful launch in 86 new markets, a $1.5 billion
Exchangeable Notes offering, and the acquisition of Betty Labs
(Locker Room).
MONTHLY ACTIVE USERS (“MAUs”)
Total MAUs grew 24% Y/Y to 356 million in the quarter, finishing
within our guidance range but modestly below our internal
expectations. In Q1, we added 11 million MAUs, which drove healthy
double digit Y/Y growth across all regions. We saw meaningful
contributions from markets such as the US, Mexico, Russia, and
India. However, growth was lower than plan in Latin America and
Europe. In aggregate, the performance of our newly launched markets
was in line with our expectations.
Global consumption hours continued to grow meaningfully in Q1 on
a Y/Y basis. Per user consumption grew in developed regions such as
North America and Europe, while developing regions showed signs of
improvement but remained below pre-COVID levels.
PREMIUM SUBSCRIBERS
Our Premium Subscribers grew 21% Y/Y to 158 million in the
quarter, hitting the top end of our guidance range. In Q1, we added
nearly 4 million subscribers, which drove healthy double digit Y/Y
growth across all regions and was strong relative to a tough
promotional comparison from Q1 last year. The subscriber
outperformance was fairly broad based and led by North America,
where we saw stronger than expected performance of Trials &
Campaigns and faster than anticipated growth in our Standard
product. In Latin America, we saw outperformance driven by the
continued success of our Family Plan product. We are pleased with
the new market contributions, with South Korea being the biggest
driver.
Our average monthly Premium churn rate for the quarter was down
modestly Y/Y and flat Q/Q. The Y/Y improvement continues to be
driven by the adoption of our higher retention offerings like
Family Plan in addition to growth in high retention regions.
FINANCIAL METRICS
Revenue
Total revenue of €2,147 million grew 16% Y/Y in Q1 (22% Y/Y on a
constant currency basis). Reported revenue was toward the top end
of our guidance range due to subscriber outperformance, slightly
lower headwinds from FX (600 bps impact vs. 770 bps incorporated
into our plan), and advertising strength. The FX impact was
primarily driven by the Y/Y US dollar weakness vs. the Euro.
Premium revenue grew 14% Y/Y to €1,931 million (or 19% Y/Y in
constant currency terms) while Ad-Supported revenue was
particularly strong, growing 46% Y/Y to €216 million (or 57% Y/Y in
constant currency terms).
Within Premium, average revenue per user (“ARPU”) of €4.12 in Q1
was down 7% Y/Y (but down only 1% Y/Y in constant currency terms
vs. down 3% Y/Y in Q4). Excluding FX, product mix accounted for the
majority of the ARPU decline. To date, we have raised prices across
a variety of our Premium offerings in over 30 markets and early
results have shown no material impacts to gross intake or
cancellation rates. On April 26th, we announced price increases for
various subscription products in 12 additional markets, including
the United States (Family Plan), United Kingdom (Student, Family,
and Duo Plans), and Brazil (Full Portfolio).
Ad-Supported revenue outperformed our forecast with all regions
growing double digits Y/Y excluding the impact of FX. The strength
in Ad-Supported revenue was led by our Podcast and Programmatic
channels, with the former benefiting from the acquisitions of
Megaphone and The Ringer along with our exclusive licensing of the
Joe Rogan Experience. Spotify Ad Studio grew substantially Y/Y, and
we continued to expand the self-serve offering to more markets
(France, Germany, and Italy) and began beta testing podcast
inventory ad buying on Spotify Ad Studio in the US. Additionally,
in April, we expanded Streaming Ad Insertion (“SAI”) from the US,
Canada, United Kingdom, and Germany to also include Australia and
Sweden.
In February, we announced the Spotify Audience Network, a
first-of-its-kind audio advertising marketplace which connects
advertisers to listeners across Spotify Owned & Exclusive
(“O&E”) podcasts, podcasts from enterprise publishers via
Megaphone, podcasts from emerging creators via Anchor, and
ad-supported music. The Spotify Audience Network bundles multiple
shows for advertisers to buy specific audiences using our
proprietary SAI technology. We believe this shift will provide
advertisers much greater reach and efficiency while creators gain a
much greater monetization opportunity.
Gross Margin
Gross Margin finished at 25.5% in Q1, at the top end of our
guidance range and flat Y/Y. While we continue to see strong
revenue growth in podcast and non-music revenue, our non-music
costs continue to grow at a slightly faster rate which is a modest
drag on our Gross Margin. We did see improvements in Other Cost of
Revenue (e.g. payment fees, streaming delivery costs) which offset
the content spend increase.
Premium Gross Margin was 27.9% in Q1, down 42 bps Y/Y and
Ad-Supported Gross Margin was 4.4% in Q1, up 1,100 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 / Income (Loss)
Operating Expenses totaled €534 million in Q1, an increase of 9%
Y/Y and below our plan. Social Charges were approximately €35
million lower than forecast due to a decrease in our share price
during the quarter, accounting for the majority of our Operating
Expense variance. Excluding the impact of our share price
volatility, Operating Expenses grew less than forecast at 14% Y/Y.
Certain marketing expenses came in lower than expected due to
campaign timing shifts, which were partially offset by higher than
expected personnel expenses.
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 Q1, our workforce consisted of 6,794 FTEs
globally.
Product and Platform
On March 29, 2021, we acquired Betty Labs, the creators of
Locker Room, a live audio app that’s changing the way insiders and
fans talk about sports. This acquisition builds on our work to
create “future formats of audio” and will accelerate Spotify’s
entry into the live audio space. We plan to evolve and expand
Locker Room into an enhanced live audio experience for a wider
range of creators and fans. Through this new live experience,
Spotify will offer a range of sports, music, and cultural
programming, as well as a host of interactive features that will
enable creators to connect with audiences in real time. We intend
to give professional athletes, writers, musicians, songwriters,
podcasters, and other global voices opportunities to host real-time
discussions, debates, ask me anything (AMA) sessions, and more.
During the quarter, Spotify launched multiple upgrades,
including a new Desktop App and Web Player redesign that makes the
user experience and navigation easier than ever by combining a
modern scalable web player together with a cohesive Spotify design.
Additionally, our web platform includes 36 new languages (62 in
total), which also will be rolled out to the mobile app, allowing
Spotify to reach more audiences.
We also began testing Podcast Topic Search in the US, which
enables listeners to search for podcasts by theme and topic in an
effort to make discovering new content easier than ever. In
February, we announced a new partnership between Anchor and
WordPress to generate opportunities for content creators to evolve
their work and reach new audiences through the power of audio. With
this new tool, bloggers can publish their written content as a
podcast with just a few clicks—and podcasters can create a website
for their podcast just as easily. This offers a whole new group of
creators—those who have historically focused on the written word—to
access an entirely new audience via audio and share their voices on
Spotify.
We remain focused on our ubiquity strategy and continue to
expand support for Spotify across a variety of platforms and
markets. With the expansion of our footprint into non-music
content, we also have expanded support for video podcasts on
AppleTV (including AirPlay2), LG, and Comcast. At the end of Q1,
users in 10 additional markets, including Sweden, Australia, and
Chile, can now ask Alexa to play podcasts from Spotify.
Additionally, PlayStation's PS4 and PS5 consoles now support
Spotify in 5 new markets, including Russia, Ukraine, Croatia,
Slovenia, and Israel.
Post Q1, we announced a limited launch of Car Thing to eligible
US users. Car Thing is a smart player that allows users to more
seamlessly engage with Spotify music, news, entertainment, talk,
and more in the car. We also launched a joint partnership with
Facebook to create an integrated ecosystem with a miniplayer
experience driven by social discovery that allows listeners to
enjoy audio from Spotify directly within Facebook, without
switching between apps. Additionally, we announced new ways for
podcast creators to monetize their work with the rollout of
Spotify’s Paid Subscriptions, the Spotify Open Access Platform, and
utilization of the Spotify Audience Network for independent
creators. These initiatives provide creators with different options
to monetize their work, which allows them to continue to grow their
audiences and create meaningful revenue streams.
Content
At the end of Q1, we had 2.6 million podcasts on the platform
(up from more than 2.2 million podcasts by the end of Q4). The
percentage of MAUs that engaged with podcast content on our
platform was consistent with Q4 levels. From a consumption
standpoint, we saw a strong increase in Q1 podcast consumption
hours vs. Q4, with March activity driving an all-time high in terms
of podcast share of overall platform consumption hours.
The Joe Rogan Experience performed above expectations with
respect to new user additions and engagement. Notable Q1 content
launches in the US included Renegades: Born in the USA (Higher
Ground), Unlocking Us with Brene Brown (Parcast), Ringer Dish Feed
- Taylor Swift (The Ringer), and Welcome To Your Fantasy (Gimlet).
Renegades: Born in the USA, featuring former President Barack Obama
and Bruce Springsteen, was the second largest podcast on Spotify in
March (on an MAU basis) and has been our most international show
to-date, with listenership extending across more than 150
countries. Internationally, we released 55 new O&E podcasts.
Select launches included a Japanese original Juju Talk, which was a
major driver of user acquisition in the country, as well as our
first daily new original in Germany, FOMO - was hab ich heute
verpasst (what did I miss today?). Additionally, we launched our
first slate of 7 Spotify Originals in the Philippines, with topics
ranging from gaming to well-being, featuring personalities like Pia
Wurtzbach and Donnalyn Bartolome.
On the music front, key Q1 releases included Olivia Rodrigo’s
single, drivers license, which set the Spotify record for most
streams in a day for a non-holiday song with over 15 million global
streams on January 11. Additional releases include Arlo Parks’
album, Collapsed in Sunbeams, as well as Selena Gomez’s EP,
Revelación. Daft Punk and Spotify partnered to celebrate the 20th
anniversary of their highly acclaimed 2001 opus Discovery with an
enhanced playlist experience after the announcement of the duo
splitting up. The playlist included exclusive Canvas and Storylines
for every track on the album, and since the start of the campaign,
Daft Punk has seen a double digit increase in follows
on-platform.
Two-Sided Marketplace
Sponsored Recommendations have shown strong growth and are
becoming an essential part of new release marketing strategies for
artists and labels. Q1 was the biggest quarter yet for Sponsored
Recommendations, with an 11% increase over campaign volume from
last quarter and a 10% increase in new customers vs. Q4. In an
effort to expand and evolve Sponsored Recommendations, we expanded
into Australia and New Zealand and have now made this tool
available for singles. Additionally, we began the rollout of a
self-serve buying experience for Sponsored Recommendations to
select artist and label teams in the US.
At our Stream On event, we announced that we’re testing a new
commercial tool called Discovery Mode with a small group of labels
that enables artists to better reach new audiences on Spotify. To
ensure the tool is accessible to artists at any stage of their
careers, it will not require any upfront budget and instead, labels
or rights holders agree to be paid a promotional recording royalty
rate for streams in personalized listening sessions where we
provided this service. Early results from the labels participating
have been positive with participating labels seeing a 30% increase
in streams for content opted in on average.
This quarter, we announced that all artists now have access to
our popular feature, Canvas, through Spotify for Artists. The
Canvas for Rodrigo’s drivers license was shared from Spotify to
Instagram Stories over 243,000 times in its first week alone and
was viewed more than 50 million times in its first three weeks.
Artists at every stage of their career have used Canvas, and we now
have over 1 million Canvases live on Spotify.
In Q1, we launched Noteable — our new global home for
songwriters, producers and publishers which is a central space to
access all the resources we’ve made available to the songwriting
and publishing community, including Spotify Publishing Analytics,
SoundBetter, Songwriter Pages and Song Credits, the Songwriting
Hub, and more.
Free Cash Flow
Free Cash Flow was €41 million in Q1, a €61 million increase Y/Y
as the prior year included an unfavorable impact to working capital
due to a shift in timing for select licensor payments as well as an
increase in net income adjusted for non-cash items. These increases
were partially offset by higher cash outflow for PP&E.
In addition to the positive Free Cash Flow dynamics, we maintain
a strong liquidity position and are confident in the financial
position of the business. During Q1, Spotify USA Inc. issued $1.5
billion in aggregate principal amount, zero coupon Exchangeable
Notes due 2026 with a 70% conversion premium. At the end of Q1, we
had €3.1 billion in cash and cash equivalents, restricted cash, and
short term investments.
Q2 & 2021 OUTLOOK
The following forward-looking statements reflect Spotify’s
expectations as of April 28, 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.
Q2 2021 Guidance:
- Total MAUs: 366-373 million
- Total Premium Subscribers: 162-166 million
- Total Revenue: €2.16-€2.36 billion
- Assumes approximately 200 bps headwind to growth Y/Y due to
movements in foreign exchange rates
- Gross Margin: 23.6-25.6%
- Operating Profit/Loss: €(134)-€(54) million
Full Year 2021 Guidance: We have modestly lowered our Total MAUs
range for the full year consistent with the lower than expected Q1
Total MAU growth. Additionally, we have increased our outlook for
Total Revenue and Gross Margin, as well as decreased the Operating
Loss expectations. Our Premium Subscriber outlook remains
unchanged.
- Total MAUs: 402-422 million
- Total Premium Subscribers: 172-184 million
- Total Revenue: €9.11-€9.51 billion
- Assumes approximately 75 bps headwind to growth Y/Y due to
movements in foreign exchange rates
- Gross Margin: 24.0-26.0%
- Operating Profit/Loss: €(250)-€(150) million
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 #SpotifyEarningsQ121. 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/8137415
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; 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 data security; our ability to maintain,
protect, and enhance our brand; payment-related risks; our ability
to hire and retain key personnel; 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. 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.
Consolidated statement of
operations (Unaudited) (in € millions, except share and per
share data)
Three months ended
March 31, 2021
December 31, 2020
March 31, 2020
Revenue
2,147
2,168
1,848
Cost of revenue
1,599
1,593
1,376
Gross profit
548
575
472
Research and development
196
232
162
Sales and marketing
236
294
231
General and administrative
102
118
96
534
644
489
Operating income/(loss)
14
(69)
(17)
Finance income
104
4
70
Finance costs
(31)
(114)
(12)
Finance income/(costs) - net
73
(110)
58
Income/(loss) before tax
87
(179)
41
Income tax (benefit)/expense
64
(54)
40
Net income/(loss) attributable to
owners of the parent
23
(125)
1
Earnings/(loss) per share attributable
to owners of the parent
Basic
0.12
(0.66)
—
Diluted
(0.25)
(0.66)
(0.20)
Weighted-average ordinary shares
outstanding
Basic
190,565,397
189,852,424
185,046,324
Diluted
191,815,695
189,852,424
185,632,113
Consolidated statement of financial
position (Unaudited) (in € millions)
March 31, 2021
December 31, 2020
Assets
Non-current assets
Lease right-of-use assets
452
444
Property and equipment
337
313
Goodwill
815
736
Intangible assets
98
97
Long term investments
2,522
2,277
Restricted cash and other non-current
assets
82
78
Deferred tax assets
14
15
4,320
3,960
Current assets
Trade and other receivables
440
464
Income tax receivable
5
4
Short term investments
644
596
Cash and cash equivalents
2,442
1,151
Other current assets
186
151
3,717
2,366
Total assets
8,037
6,326
Equity and liabilities
Equity
Share capital
—
—
Other paid in capital
4,630
4,583
Treasury shares
(171)
(175)
Other reserves
2,052
1,687
Accumulated deficit
(3,267)
(3,290)
Equity attributable to owners of the
parent
3,244
2,805
Non-current liabilities
Exchangeable Notes
1,229
—
Lease liabilities
587
577
Accrued expenses and other liabilities
38
42
Provisions
3
2
1,857
621
Current liabilities
Trade and other payables
660
638
Income tax payable
12
9
Deferred revenue
424
380
Accrued expenses and other liabilities
1,715
1,748
Provisions
20
20
Derivative liabilities
105
105
2,936
2,900
Total liabilities
4,793
3,521
Total equity and liabilities
8,037
6,326
Consolidated statement of cash
flows (Unaudited) (in € millions)
Three months ended
March 31, 2021
December 31, 2020
March 31, 2020
Operating activities
Net income/(loss)
23
(125)
1
Adjustments to reconcile net income/(loss)
to net cash flows
Depreciation of property and equipment and
lease right-of-use assets
22
21
21
Amortization of intangible assets
8
8
5
Share-based payments expense
48
43
37
Finance income
(104)
(4)
(70)
Finance costs
31
114
12
Income tax expense/(benefit)
64
(54)
40
Other
2
4
4
Changes in working capital:
Decrease/(increase) in trade receivables
and other assets
15
(94)
22
(Decrease)/increase in trade and other
liabilities
(67)
182
(63)
Increase/(decrease) in deferred
revenue
37
23
(4)
Decrease in provisions
(1)
—
(1)
Interest paid on lease liabilities
(11)
(12)
(15)
Interest received
—
1
3
Income tax paid
(2)
—
(1)
Net cash flows from/(used in) operating
activities
65
107
(9)
Investing activities
Business combinations, net of cash
acquired
(59)
(194)
(137)
Purchases of property and equipment
(24)
(35)
(12)
Purchases of short term investments
(115)
(406)
(498)
Sales and maturities of short term
investments
90
505
477
Change in restricted cash
—
2
—
Other
(6)
(4)
(14)
Net cash flows used in investing
activities
(114)
(132)
(184)
Financing activities
Payments of lease liabilities
(8)
(8)
(4)
Lease incentives received
—
7
7
Proceeds from exercise of stock
options
51
45
77
Proceeds from issuance of Exchangeable
Notes, net of costs
1,223
—
—
Other
(16)
(11)
(3)
Net cash flows from financing
activities
1,250
33
77
Net increase/(decrease) in cash and
cash equivalents
1,201
8
(116)
Cash and cash equivalents at beginning of
the period
1,151
1,182
1,065
Net exchange gains/(losses) on cash and
cash equivalents
90
(39)
2
Cash and cash equivalents at period
end
2,442
1,151
951
Calculation of basic and diluted
earnings/(loss) per share (Unaudited) (in € millions, except
share and per share data)
Three months ended
March 31, 2021
December 31, 2020
March 31, 2020
Basic earnings/(loss) per share
Net income/(loss) attributable to owners
of the parent
23
(125)
1
Share used in computation:
Weighted-average ordinary shares
outstanding
190,565,397
189,852,424
185,046,324
Basic earnings/(loss) per share
attributable to owners of the parent
0.12
(0.66)
—
Diluted loss per share
Net income/(loss) attributable to owners
of the parent
23
(125)
1
Fair value gains on dilutive warrants
(22)
—
(38)
Fair value gains on Exchangeable Notes
(49)
—
—
Net loss used in the computation of
diluted loss per share
(48)
(125)
(37)
Shares used in computation:
Weighted-average ordinary shares
outstanding
190,565,397
189,852,424
185,046,324
Warrants
312,148
—
585,789
Exchangeable Notes
938,150
—
—
Diluted weighted-average ordinary
shares
191,815,695
189,852,424
185,632,113
Diluted loss per share attributable to
owners of the parent
(0.25)
(0.66)
(0.20)
Reconciliation of IFRS to Non-IFRS
Results (Unaudited) (in € millions, except percentages)
Three months ended
March 31, 2021
March 31, 2020
IFRS revenue
2,147
1,848
Foreign exchange effect on 2021 revenue
using 2020 rates
(114)
Revenue excluding foreign exchange
effect
2,261
IFRS revenue year-over-year change %
16
%
Revenue excluding foreign exchange effect
year-over-year change %
22
%
IFRS Premium revenue
1,931
1,700
Foreign exchange effect on 2021 Premium
revenue using 2020 rates
(98)
Premium revenue excluding foreign exchange
effect
2,029
IFRS Premium revenue year-over-year change
%
14
%
Premium revenue excluding foreign exchange
effect year-over-year change %
19
%
IFRS Ad-Supported revenue
216
148
Foreign exchange effect on 2021
Ad-Supported revenue using 2020 rates
(16)
Ad-Supported revenue excluding foreign
exchange effect
232
IFRS Ad-Supported revenue year-over-year
change %
46
%
Ad-Supported revenue excluding foreign
exchange effect year-over-year change %
57
%
Free Cash Flow (Unaudited) (in €
millions)
Three months ended
March 31, 2021
December 31, 2020
March 31, 2020
Net cash flows from operating
activities
65
107
(9)
Capital expenditures
(24)
(35)
(12)
Change in restricted cash
—
2
—
Free Cash Flow
41
74
(21)
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/20210428005327/en/
Investor Relations: Bryan Goldberg Lauren Katzen ir@spotify.com
Public Relations: Dustee Jenkins press@spotify.com
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