Spotify Shares Are Appropriately Valued: Despite a weaker-than-expected outlook for the first quarter, qualitative commentary for the rest of 2022 seemed to be roughly in line with prior expectations, Marok said. Spotify said it has not witnessed any related attrition to date from the recent Joe Rogan controversies, although stating that it may be too early to predict, the analyst noted.
The 2022 revenue guidance was raised to reflect a 6.1% greater contribution from ad-supported, partially offset by a 0.3% reduction in Premium revenue, he added. Rosenblatt's first-quarter revenue estimates are reduced modestly to reflect a slightly lower MAU count, the analyst noted. The analyst raised his 2022 non-GAAP operating expenditure guidance to reflect increased investment outside of the U.S. Rosenblatt Adjusts Model Following Spotify's Q4: Following the quarterly results, Rosenblatt maintained its net-adds expectations relatively unchanged, Zgutowicz said. "Shares do not reflect Spotify's opportunity to scale its business into meaningful profits, which keeps us bullish at these prices despite the continued flat margin outlook," Morgan Stanley said. The first-quarter guidance was largely in line to slightly better on revenue, subscribers, and MAUs but was lower on gross margins and operating income, Reif Ehrlich said.Īdvertising strength, Swinburne noted, translates into gross margin expansion in contrast to Premium revenue growth. MAU and premium subscriber trajectory should closely mirror 2021 levels, the analyst said, citing the company. The company also revised its guidance policy and said it will provide only quarterly guidance due to the multi-year nature of its investments, the analyst noted. Gross margin benefited from a favorable mix shift towards podcasts and marketplace activity, he added.
The revenue growth, the analyst said, was helped by the 40% increase in Ad-supported streaming.
KeyBanc Capital Markets analyst Justin Patterson maintained an Overweight rating and a $260 price target.īofA Sees Q2 Investor Event As Catalyst: Spotify reported fourth-quarter revenue, gross margin and monthly active users all exceeded expectations, Reif Ehrlich said. Credit Suisse analyst Douglas Mitchelson maintained a Neutral rating and lowered the price target from $270 to $238.
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