Wall Street analysts are bullish, as Spotify nears its first earnings report as a public company, after the market closes today. Goldman Sachs, JPMorgan, Evercore and Morgan Stanley predict a $190 stock price.
Spotify stock was trading at $169 up 2.5% in early trading Wednesday.
Some hints as to what Spotify will highlight on today’s earning call came during a recent press event. Last week, the company announced a major expansion of its free music service, “assisted playlists” and new data saving features.
Subscribers, Usage, Earnings & Profits
Today’s 5PM ET call is really all about the numbers, including subscribers, usage, earning and profits. Stifel analyst John Egbert, whose “Buy” rating comes with a more conservative $180 price target, says that Spotify is modeling to report these metrics:
-
75 million premium subscribers
- Total monthly active users of 169.3 million
- Total revenue of $1.36 billion in the U.S. dollar equivalent
- $317.6 million in gross profit
- 23.2% gross profit margin
- operating loss of $87.5 million
Live Tweeting & Looking For Answers
@Hypebot will be live tweeting today’s earnings call and looking for answers which will help understand where Spotify is headed in the coming months.
Are there plans for price increases like the test coming next month of a 10% bump in Norway?
- Do they sahe numbers that show how the expanded free tier is driving new users, paid subscriptions and ad revenue? Or it it too soon?
- Is there any breakdown of subscribers and subscriber growth, particularly per region>
- How the increased competition affecting Spotify?
- What are the plans for new acquisition Loudr?
- Commentary on Music Modernization Act
- Hints at future plans for more voice control, hi-def audio, and the rumored in-car listening device
- Do they announce any new features for creators that keep CEO Daniel Ek’s recent pledge to enable “a million creative artists the opportunity to live off their art”?