Spotify Technology S A : First Quarter 2025 Shareholder Deck

Published: 2025-04-29 06:39:13 ET SPOT

Q1 2025 Update

April 29th, 2025

Executive Summary p.03

Key Highlights

p.04

Financial Summary MAUs & Subscribers Product & Platform Outlook

Financial Statements

p.06

p.13

p.16

p.19

p.22

USER & FINANCIAL SUMMARY

Q1 2024

Q4 2024

Q1 2025

Y/Y

Q/Q

USERS (M)

Total Monthly Active Users ("MAUs")

615

675

678

10%

Premium Subscribers

239

263

268

12%

Ad-Supported MAUs

388

425

423

FINANCIALS (€M)

Premium

3,247

3,705

3,771

16%

Ad-Supported

389

537

419

-22%

Total Revenue

3,636

4,242

4,190

15%

-1%

Gross Profit

1,004

1,368

1,326

32%

-3%

Gross Margin

27.6%

32.2%

31.6%

Operating Income

168

477

509

203%

Operating Margin

4.6%

11.2%

12.1%

Net Cash Flows From Operating Activities

211

883

539

155%

-39%

Free Cash Flow*

207

877

534

158%

-39%

We are pleased with our performance in Q1, as nearly all of our KPIs were in-line to ahead of guidance. The business added 3 million MAU during the quarter, in-line with our expectations for a seasonally small quarter, while Subscriber net additions of 5 million significantly outperformed guidance by 3 million. Revenue was in-line, as Premium and Ad-Supported outperformance was offset by unfavorable currency movements. Gross Margin of 31.6% was modestly above guidance and reflected 403 bps of Y/Y expansion. Operating Income of €509 million was below guidance as Gross Profit strength and lower personnel and related and marketing costs were more than offset by €76 million in Social Charges. Social Charges were €58 million above forecast due to share price appreciation during the quarter. As a reminder, we do not incorporate share price movements into our forecast since they are beyond our control. Free Cash Flow* reached €534 million in Q1, bringing LTM Free Cash Flow generation to

€2.6 billion.

Overall, we continue to view the business as well-positioned to deliver growth and improving margins in 2025 as we reinvest to support our long-term potential.

* 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.

Continued double-digit Y/Y growth in MAU and Premium Subscribers

MAUs grew 10% Y/Y to 678 million, reflecting Y/Y growth across all regions, led by Rest of World and Latin America

Premium Subscribers grew 12% Y/Y to 268 million, reflecting Y/Y and Q/Q growth across all regions; this marked the highest Q1 net additions since 2020 and the second-highest Q1 in Spotify's history

Strong revenue growth with sustained profitability improvement

Total Revenue grew 15% Y/Y to €4.2 billion; on a constant currency* basis, Total Revenue grew 15% Y/Y

Gross Margin finished at a Q1 high of 31.6% (up 403 bps Y/Y)

Operating Income finished at a record high of €509 million (a 12.1% margin)

Free Cash Flow* finished at a Q1 record high of €534 million

Expanding Spotify Partner Program, automated ads solutions and concert discovery

Successfully launched the Spotify Partner Program for video podcast creators in the U.S., U.K., Canada and Australia; expanding to nine new markets in late April

Expanded Spotify Ad Exchange partnerships beyond The Trade Desk to include leading DSPs and technology partners such as Google's DV360 and LiveRamp

Rolled out Concerts Near You, a new playlist to help drive more concert discovery for our users based on listening habits

* Constant Currency adjusted measures and Free Cash Flow are non-IFRS measures. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information.

Results

Q1 2025 Actuals

Guidance

Monthly Active Users (M)

In-Line

678

Premium Subscribers (M)

Above

268

265

Financials

Results

Q1 2025 Actuals

Guidance

Total Revenue (€B)

In-Line

€4.2

Gross Margin

Above

31.6%

31.5%

Operating Income (€M)*

Below

€509

€548

*Includes €76 million of Social Charges which were €58 million higher than forecast / guidance driven by share price appreciation during the quarter. As a reminder, we do not incorporate share price movements into our forecast since they are beyond our control.

Users

USERS (M)

Total Monthly Active Users ("MAUs")

615

626

640

675

678

10%

Premium Subscribers

239

246

252

263

268

12%

Ad-Supported MAUs

388

393

402

425

423

FINANCIALS (€M)

Premium

3,247

3,351

3,516

3,705

3,771

16%

Ad-Supported

389

456

472

537

419

Total Revenue

3,636

3,807

3,988

4,242

4,190

15%

Gross Profit

1,004

1,112

1,240

1,368

1,326

32%

31%

Gross Margin

27.6%

29.2%

31.1%

32.2%

31.6%

Total Operating Expenses

836

846

786

891

817

-2%

-3%

Operating Income

168

266

454

477

509

203%

Operating Margin

4.6%

7.0%

11.4%

11.2%

12.1%

FREE CASH FLOW & LIQUIDITY (€M, unless otherwise denoted)

Net Cash Flows From Operating Activities

211

492

715

883

539

155%

Free Cash Flow*

207

490

711

877

534

158%

Cash & Cash Equivalents, Restricted Cash & Short Term Investments (€B)

4.7

5.4

6.1

7.5

8.0

* Free Cash Flow and Constant Currency adjusted measures (FXN) are non-IFRS measures. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information.

Y/Y FXN*

Q4 2024 Q1 2025 Y/Y

Q3 2024

Q2 2024

Q1 2024

USER, FINANCIAL & LIQUIDITY SUMMARY

Revenue

Profitability

Free Cash Flow & Liquidity

Revenue of €4,190 million grew 15% Y/Y in Q1 (or 15% Y/Y constant currency*), reflecting:

Premium Revenue growth of 16% Y/Y (or 16% Y/Y constant currency*), driven by subscriber gains and ARPU increases; and

Ad-Supported Revenue growth of 8% Y/Y (or 5% Y/Y constant currency*)

Currency movements aided Total Revenue Y/Y growth by ~20 bps vs. the ~90 bps incorporated into our guidance

Gross Margin was 31.6% in Q1, up 403 bps Y/Y reflecting:

Premium gains driven by audiobooks and music; and

Ad-Supported gains driven by podcasts, music and Other Costs of Revenue Operating Income was €509 million in Q1 and reflected the above, along with:

Lower personnel and related costs and lower marketing spend

Operating Expenses included €75 million in Social Charges

At the end of Q1, our workforce consisted of 7,258 full-time employees globally

Free Cash Flow* was €534 million in Q1. Our liquidity and balance sheet remained strong, with €8.0 billion in cash and cash equivalents, restricted cash and short term investments.

* Constant Currency adjusted measures and Free Cash Flow are non-IFRS measures. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information.

Premium growth driven by Subscriber and ARPU gains

Premium Revenue grew 16% Y/Y to €3,771 million (or 16% Y/Y constant currency*), reflecting subscriber growth of 12% Y/Y and a Premium ARPU increase of 4% Y/Y to €4.73 (or up 4% Y/Y constant currency*).

Excluding the impact of FX, ARPU performance was driven by price increase benefits, partially offset by product/market mix.

Advertising growth across music and podcasting

Ad-Supported Revenue grew 8% Y/Y (or 5% Y/Y constant currency*). Music and podcast advertising was driven by growth in impressions sold, partially offset by softness in pricing and optimization of our podcasting inventory in our Owned & Licensed portfolio. Our automated sales channels were the largest contributors to overall advertising growth.

* Constant Currency adjusted measures are non-IFRS measures. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. ARPU means Premium Average Revenue per User.

* Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter.

Driven by continued improvement across Premium and Ad-Supported segments

Gross Margin finished at 31.6% in Q1, up 403 bps Y/Y. The Y/Y trend was driven by improvements in our Premium and

Ad-Supported segments.

Premium Gross Margin was 33.5% in Q1, up 332 bps Y/Y. The Y/Y trend was driven by favorability from audiobooks and music.

Ad-Supported Gross Margin was 15.3% in Q1, up 885 bps Y/Y. The Y/Y trend was

driven by favorability from podcasts, music and Other Costs of Revenue.

Y/Y declines led by timing factors

Operating Expenses declined 2% Y/Y in Q1. Absent the effects of Y/Y movements in currency and Social Charges, the 3% Y/Y decline in Operating Expenses was driven primarily by a decrease in personnel and related costs and lower marketing spend. The decrease in personnel and related costs was primarily driven by a shift in the timing of annual equity grants from Q1 to Q2.

As a reminder, Social Charges are payroll taxes associated with employee salaries and benefits in select countries where we operate. Since a portion of these taxes is tied to the intrinsic value of share-based compensation awards, movements in our stock price can lead to fluctuations in the taxes we accrue. This resulted in Social Charges related to share-based compensation of €75 million in current period Operating Expenses. Prior year period Operating Expenses included €82 million in Social Charges.

Constant Currency adjusted measures are non-IFRS measures. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information.

Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter.

** Social Charges Related to Equity Awards is net of FX movements, which had an approximate 900 bps favorable impact to the Y/Y change of this line item.

Record Q1 performance aids balance sheet strength

Free Cash Flow* was €534 million in Q1, a record high Q1 as a result of higher Net Income adjusted for

non-cash items and improving net working capital. Capital expenditures rose €1 million Y/Y to €6 million.

While the magnitude of Free Cash Flow can fluctuate from quarter to quarter based on seasonality and timing, we have averaged €857 million of positive Free Cash Flow on a trailing 12 month basis for the past three years. In Q1, trailing 12 month Free Cash Flow expanded to €2.6 billion. On a cumulative basis, we have generated €4.8 billion of Free Cash Flow since the beginning of 2016, supporting our strong balance sheet and €8.0 billion in cash and cash equivalents, restricted cash and short term investments balance.

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" to be consistent with other slides. Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter. Cume represents cumulative performance since the beginning of 2016.

Total MAUs grew 10% Y/Y to 678 million, up from 675 million last quarter and in-line with our guidance. Quarterly performance reflected:

Y/Y growth across all regions, led by Rest of World and Latin America

Quarterly performance reflected anticipated lighter volumes of net adds due to the later campaign timing of 2024 Wrapped as well as moderated marketing activity in-quarter

Our Premium Subscribers grew 12% Y/Y to 268 million, up from 263 million last quarter and 3 million above guidance. Quarterly performance reflected:

Y/Y and Q/Q growth across all regions, with outperformance led by Rest of World, Latin America and Europe

Successful regional promotional campaigns

Net additions marked the highest Q1 since 2020 and the second-highest Q1 in our history

PRODUCT

Accelerating Value for Creators and Advertisers Worldwide

Introduced Automated Ad Solutions to Transform Buying, Measurement and Creativity. These enhanced tools - which include Spotify Ad Exchange, Gen AI Ads and Spotify Ads Manager - make it easier than ever for advertisers to buy, create and measure impactful campaigns.

The Spotify Partner Program Expanded to 9 New Markets following the successful January launch of the Spotify Partner Program in the US, UK, Canada and Australia. Starting April 29, eligible creators in France, Belgium, Luxembourg, Netherlands, Ireland, New Zealand, Germany, Austria and Switzerland are able to enroll.

Expanded Spotify Ad Exchange partnerships beyond The Trade Desk to include leading DSPs and technology partners such as Google's DV360 and LiveRamp. These collaborations enhance advertisers' ability to efficiently access Spotify inventory, reach their target audiences and measure campaign performance.

Driving Growth and Connection Between Artists, Fans and Creators

Expanded AI-Narrated Audiobooks with ElevenLabs, allowing authors to tap into ElevenLabs' high-quality AI voice narration to create audiobooks in 29 languages and make it easier to reach new listeners.

Rolled out our Concerts Near You playlist, which helps listeners find local concerts, with weekly updates based on their listening habits. It includes event details, ticket links and sharing options for easy planning.

Launched first-ever Spotify Creator Milestone Award, which will be given to podcasts that reach streaming milestones and set new standards for podcast achievements. More than one billion people have listened to a podcast on Spotify since we entered the space in 2019.

OUTLOOK

Outlook for Q2'25

The following forward-looking statements reflect Spotify's expectations for Q2 2025 as of April 29, 2025 and are subject to substantial uncertainty.

Total MAUs

689 million

Implies the addition of approximately 11 million net new MAUs in the quarter

Total Premium Subscribers

273 million

Implies the addition of approximately 5 million net new subscribers in the quarter

Total Revenue

€4.3 billion

Assumes approximately ~170 bps headwind to growth Y/Y due to foreign exchange rate movements; based on currency rates as of the Q1 close

Gross Margin

31.5%

Primarily driven by Y/Y favorability across Premium and Ad-Supported segments

Operating Income

€539 million

Incorporates €18 million in Social Charges based on a Q1 close share price of $550.03

Webcast Information

We will host a live question and answer session starting at 8:00 a.m. ET today on investors.spotify.com. The session will be led by Daniel Ek, our Co-Founder and Chief Executive Officer, and Christian Luiga, our Chief Financial Officer. Questions can be submitted by going to slido.com and using the code #SpotifyEarningsQ125. Participants also may join using the listen-only conference line by registering through the following site: https://registrations.events/direct/Q4I570500

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, gross profit excluding foreign exchange effect, Operating expense excluding foreign exchange effect, and Free Cash Flow. Management believes that Revenue excluding foreign exchange effect, Premium revenue excluding foreign exchange effect, Ad-Supported revenue excluding foreign exchange effect, gross profit excluding foreign exchange effect, and Operating expense excluding foreign exchange effect, are useful to investors because they present measures that facilitate comparison to our historical performance. However, these should be considered in addition to, not as a substitute for or superior to, Revenue, Premium revenue, Ad-Supported revenue, Gross Profit, Operating expense, 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" section below.

Forward Looking Statements

This shareholder update 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, retain existing users, and monetize our products and services; competition for users, their time, and advertisers; risks associated with our international operations and our ability to manage our growth and the scope and complexity of our business; risks associated with our new products or services and our emphasis on long-term user engagement over short-term results; our ability to predict, recommend, and play content that our users enjoy; our ability to generate profit or positive cash flow on a sustained basis; our ability to convince advertisers of the benefits of our advertising offerings; our ability to forecast or optimize advertising inventory amid evolving industry trends in digital advertising; our ability to generate revenues from podcasts, audiobooks, and other non-music content; potential disputes or liabilities associated with content made available on our premium service and ad-supported service (collectively, the "Service"); risks relating to acquisitions, investments, and divestitures; our dependence upon third-party licenses for most of the content we stream; our lack of control over third-party content providers who are concentrated and can unilaterally affect our access to content; our ability to comply with complex license agreements; our ability to accurately estimate royalty payments under our license agreements and relevant statutes; the limitations on our operating flexibility due to financial commitments required under certain of our license agreements; our ability to identify the compositions embodied in sound recordings and ownership thereof in order to obtain licenses or comply with existing license agreements; 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; our ability to maintain the integrity of our technology infrastructure and systems or the security of confidential information; undetected errors, misconfigurations, bugs, or vulnerabilities in our products and services; interruptions, delays, or discontinuations in service arising from our systems or systems of third parties; changes in laws or regulations affecting us; risks relating to privacy and data security, content moderation, and use of artificial intelligence; our ability to maintain, protect, and enhance our brand; risks associated with increased scrutiny of environmental, social, and governance matters; payment acceptance-related risks; our dependence on key personnel and ability to attract, retain, and motivate highly skilled employees; our ability to access additional capital to support strategic objectives; risks relating to currency exchange rate fluctuations and foreign exchange controls; the impact of economic, social, or political conditions, including inflation, changes in interest rates, changes in trade policies, geopolitical conflicts in Europe and the Middle East, and related market uncertainty; our ability to accurately estimate user metrics and other estimates; our ability to manage and remediate attempts to manipulate streams and attempts to gain or provide unauthorized access to certain features of our Service; risks related to our indebtedness, including risks related to our Exchangeable Notes; fluctuation of our operating results and fair market value of ordinary shares; tax-related risks; the concentration of voting power among our founders, which limits shareholders' ability to influence our governance and business; and risks related to our status as a foreign private issuer and a Luxembourg company. 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, 2025, as updated by subsequent reports filed with the SEC. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this shareholder update.

Rounding

Certain monetary amounts, percentages, and other figures included in this update have been subject to rounding adjustments. The sum of individual metrics may not always equal total amounts indicated due to rounding.

MAUs, Ad-Supported Users, Premium Subscribers & Revenue By Segment

* Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter.

Gross Profit by Segment, Gross Margin by Segment & Free Cash Flow*

* 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" to be consistent with other slides. Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter.

(Unaudited)

(in € millions, except share and per share data)

Three months ended

March 31, 2025

December 31, 2024

March 31, 2024

Revenue

4,190

4,242

3,636

Cost of revenue

2,864

2,874

2,632

Gross profit

1,326

1,368

1,004

Research and development

379

376

389

Sales and marketing

314

393

324

General and administrative

124

122

123

817

891

836

Operating income

509

477

168

Finance income

127

Finance costs

(252)

(105)

(53)

Finance (costs)/income - net

(181)

Income before tax

328

499

174

Income tax expense/(benefit)

103

132

(23)

Net income attributable to owners of the parent

225

367

197

Earnings per share attributable to owners of the parent

Basic

1.10

1.81

0.99

Diluted

1.07

1.76

0.97

Weighted-average ordinary shares outstanding

Basic

204,467,927

202,907,480

198,025,456

Diluted

210,243,478

209,012,505

203,773,043

(Unaudited) (in € millions)

March 31, 2025

December 31, 2024

Assets

Non-current assets

Lease right-of-use assets

223

226

Property and equipment

178

188

Goodwill

1,156

1,201

Intangible assets

Long term investments

1,958

1,635

Restricted cash and other non-current assets

Finance lease receivables

Deferred tax assets

136

186

3,833

3,626

Current assets

Trade and other receivables

749

771

Income tax receivable

Short term investments

2,894

2,667

Cash and cash equivalents

5,019

4,781

Other current assets

146

132

8,854

8,379

Total assets

12,687

12,005

Equity and liabilities

Equity

Share capital

Other paid in capital

6,328

6,124

Treasury shares

(262)

Other reserves

3,000

2,707

Accumulated deficit

(2,819)

(3,044)

Equity attributable to owners of the parent

6,247

5,525

Non-current liabilities

Exchangeable Notes

1,539

Lease liabilities

448

462

Accrued expenses and other liabilities

Provisions

Deferred tax liabilities

475

2,030

Current liabilities

Trade and other payables

1,064

1,342

Income tax payable

Deferred revenue

675

683

Accrued expenses and other liabilities

2,471

2,347

Exchangeable Notes

1,654

Provisions

Derivative liabilities

5,965

4,450

Total liabilities

6,440

6,480

Total equity and liabilities

12,687

12,005

(Unaudited) (in € millions)

Three months ended

March 31, 2025

December 31, 2024

March 31, 2024

Operating activities

Net income

225

367

197

Adjustments to reconcile net income to net cash flows

Depreciation of property and equipment

Amortization of intangible assets

Impairment charges on real estate assets

Share-based compensation expense

Finance income

(71)

(127)

(59)

Finance costs

252

105

Income tax expense/(benefit)

103

132

(23)

Other

Changes in working capital:

(Increase)/decrease in trade receivables and other assets

(4)

(Decrease)/increase in trade and other liabilities

(90)

240

(171)

Increase/(decrease) in deferred revenue

(16)

Increase/(decrease) in provisions

(1)

Interest paid

(13)

(9)

Interest received

Income tax paid

(19)

(10)

(5)

Net cash flows from operating activities

539

883

211

Investing activities

Payment of deferred consideration pertaining to business combinations

(7)

Purchases of property and equipment

(6)

(5)

Purchases of short term investments

(3,929)

(3,553)

(998)

Sales and maturities of short term investments

3,630

2,361

900

Dividends recieved

Change in restricted cash

Other

(3)

(1)

(5)

Net cash flows used in investing activities

(314)

(1,198)

(114)

Financing activities

Proceeds from exercise of stock options

204

299

242

Payments of lease liabilities

(22)

(12)

(15)

Payments for employee taxes withheld from restricted stock unit releases

(56)

(43)

(25)

Net cash flows from financing activities

126

244

202

Net increase/(decrease) in cash and cash equivalents

351

(71)

299

Cash and cash equivalents at beginning of the period

4,781

4,688

3,114

Net foreign exchange (losses)/gains on cash and cash equivalents

(113)

164

Cash and cash equivalents at period end

5,019

4,781

3,451

(Unaudited)

(in € millions, except share and per share data)

Three months ended

March 31, 2025

December 31, 2024

March 31, 2024

Basic earnings per share

Net income attributable to owners of the parent

225

367

197

Shares used in computation:

Weighted-average ordinary shares outstanding

204,467,927

202,907,480

198,025,456

Basic earnings per share attributable to owners of the parent

1.10

1.81

0.99

Diluted earnings per share

Net income attributable to owners of the parent

225

367

197

Net income used in the computation of diluted earnings per share

225

367

197

Shares used in computation:

Weighted-average ordinary shares outstanding

204,467,927

202,907,480

198,025,456

Stock options

4,160,039

4,332,408

3,684,589

Restricted stock units

1,600,055

1,751,801

2,038,363

Other contingently issuable shares

15,457

20,816

24,635

Diluted weighted-average ordinary shares

210,243,478

209,012,505

203,773,043

Diluted earnings per share attributable to owners of the parent

1.07

1.76

0.97

Revenue on a constant currency basis

(Unaudited)

(in € millions, except percentages)

Three months ended

March 31, 2025 March 31, 2024

IFRS revenue

4,190

3,636

Foreign exchange effect on 2025 revenue using 2024 rates

Revenue excluding foreign exchange effect

4,181

IFRS revenue year-over-year change %

15%

Revenue excluding foreign exchange effect year-over-year change %

15%

IFRS Premium revenue

3,771

3,247

Foreign exchange effect on 2025 Premium revenue using 2024 rates

Premium revenue excluding foreign exchange effect

3,771

IFRS Premium revenue year-over-year change %

16%

Premium revenue excluding foreign exchange effect year-over-year change %

16%

IFRS Ad-Supported revenue

419

389

Foreign exchange effect on 2025 Ad-Supported revenue using 2024 rates

Ad-Supported revenue excluding foreign exchange effect

410

IFRS Ad-Supported revenue year-over-year change %

Ad-Supported revenue excluding foreign exchange effect year-over-year change %

Gross profit on a constant currency basis

(Unaudited)

(in € millions, except percentages)

Three months ended

March 31, 2025

March 31, 2024

IFRS revenue

4,190

3,636

IFRS cost of revenue

2,864

2,632

IFRS gross profit

1,326

1,004

Foreign exchange effect on 2025 gross profit using 2024 rates

Gross profit excluding foreign exchange effect

1,319

IFRS gross profit year-over-year change %

32%

Gross profit excluding foreign exchange effect year-over-year change %

31%

Operating expenses on a constant currency basis

(Unaudited)

(in € millions, except percentages)

Three months ended

March 31, 2025

March 31, 2024

IFRS Operating expenses

817

836

Foreign exchange effect on 2025 operating expenses using 2024 rates

Operating expenses excluding foreign exchange effect

812

IFRS Operating expenses year over year change %

(2)%

Operating expenses excluding foreign exchange effect year-over-year change %

(3)%

Three months ended

March 31, 2025

March 31, 2024

IFRS Research and development expenses

379

389

Foreign exchange effect on 2025 expenses using 2024 rates

Research and development expenses excluding foreign exchange effect

378

IFRS Research and development expenses year over year change %

(3)%

Research and development expenses excluding foreign exchange effect year-over-year change %

(3)%

Three months ended

March 31, 2025

March 31, 2024

IFRS Sales and marketing expenses

314

324

Foreign exchange effect on 2025 expenses using 2024 rates

Sales and marketing expenses excluding foreign exchange effect

312

IFRS Sales and marketing expenses year over year change %

(3)%

Sales and marketing expenses excluding foreign exchange effect year-over-year change %

(4)%

Three months ended

March 31, 2025

March 31, 2024

IFRS General and administrative expenses

124

123

Foreign exchange effect on 2025 expenses using 2024 rates

General and administrative expenses excluding foreign exchange effect

122

IFRS General and administrative expenses year over year change %

1 %

General and administrative expenses excluding foreign exchange effect year-over-year change %

(1)%

Disclaimer

Spotify Technology SA published this content on April 29, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 29, 2025 at 10:38 UTC.