Episode Details

Spotify beat where it counts: 306M premium subscribers vs 305M guidance, 788M monthly users, revenue up 16% to about 5 billion euros, a record 33% gross margin, and operating income above guidance. The one blemish is EPS of 2.48 euros vs 2.84 consensus, below the operating line. Q4 guides to 33.8% margin and 316M subscribers. Thesis: the tollbooth on global listening keeps widening, raising prices without losing members while free cash flow compounds past 3 billion a year.