Spotify Technology S.A. (NYSE:SPOT) is scheduled to announce its fourth-quarter 2023 financial results on February 6, before the market opens, with a noteworthy trailing four-quarter average earnings surprise of 31.4%.
Q4 Projections
Analysts anticipate revenues of $3.96 billion for the to-be-reported quarter, reflecting a robust year-over-year growth of 22.4%. The expected increase is attributed to growth in subscribers and monthly active users, bolstering the company’s top-line performance. However, it is anticipated that the average revenue per user might experience a decline due to shifts in product and market mix.
Gross margin is expected to show improvement, primarily influenced by seasonality effects. Traditionally, the second and fourth quarters tend to have higher gross margins as promotional campaign costs are lower compared to the first and third quarters. The projected loss per share for the quarter is 8 cents, a considerable improvement from the loss of $1.43 incurred in the fourth quarter of 2022.
Spotify’s Position
Spotify holds an Earnings ESP (Earnings Expected Surprise Prediction) of 0.00% and is currently ranked as a Zacks Rank #1 stock.
Investors and analysts are keenly awaiting Spotify’s financial results, especially with the positive earnings surprises observed in the past. The company’s strategic positioning in the digital streaming market and its ability to adapt to changing market dynamics will likely be key points of interest as stakeholders evaluate its performance in the fourth quarter. As Spotify continues to navigate the competitive landscape and evolving consumer preferences, the upcoming earnings report will provide insights into its growth trajectory and market resilience.
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