So, it wasn't just that we took audience from another platform, but we actually grew the pie meaningfully for podcasters. Melvin Carters Cabinet is most diverse in St. It's roughly 600 employees that were affected. Sometimes it is increasing the revenue per user. Spotify Gross Margins (Spotify Q3 2022 Shareholder Deck). And even within that, we had two months that outperformed and one month that underperformed. So, for instance, in the last 12 months, we grew our users substantially, enhanced our capabilities, developed a better product and brought more content to creators and users around the world. A doctoral program that produces outstanding scholars who are leading in their fields of research. Next question from Mario Lu on cost savings. And I think you'll see us be more efficient with our marketing spend into '23. So pretty consistent with what we've said in the past in terms of what the impacts were in 2022 and how that will change in '23 and beyond. Thanks, Daniel, and thanks, everyone, for joining us. So that's still the plan. That's been one of our -- things that we need to speed up when we look at sort of the internal feedback. We look at all the trends, and we try and understand how big these things could go. Noting continued growth in the smartphone market, Vogel said it was reasonable to assume that streaming will continue to grow as well. If you need more lookups, subscriptions start at $39 USD/month. Yes, I think the most important thing here is to kind of go back on context. We finished the quarter with 205 million subscribers, 3 million ahead of guidance, thanks to broad-based strength across several regions, particularly Latin America. So, I'd say, look, at a high level, we've said this repeatedly for a while, any time you're seeing accelerating growth in MAU, that always tends to be very good for our business and lead to subscribers over time. That's kind of what I can say. Please. While part of me admires Ek's courage to stay the course on his long-term strategy despite changing market conditions, another part of me is becoming increasingly frustrated with Ek constantly pushing back the timeline for meaningful gross and operating margin expansion. Spotify filed its IPO as a direct listing in April 2018, at which point it was cash flow positive and valued at $29.5 billion. And in the meantime, please check out our webcast for the record for more details about the quarter. On the subscriber front, we expect to add about 2 million net subscribers, bringing total subscribers to 207 million. So, speed will come in having more decision-making and faster decision-making. Sienkiewicza 82/84 Until then, I'll likely pause adding to my position. In Q3, Spotify reported an operating loss of 228m (vs. guidance for an operating loss of 218m), representing a negative 7.5% operating margin. Reported results were aided by a 600-basis point currency benefit. Kolekcja Symbols toukon wstron pierwotnej symboliki ijej znaczenia dla czowieka. July 29, 2021. But the strategy isn't to go compete with the ecosystem, but rather to enable the ecosystem. This is for Daniel. How would you think about 2023 net adds for MAUs and premium subscribers relative to your performance in '22? When combined with our better gross profit, our operating loss was ahead of guidance by EUR 69 million. In 2021, we said that 2022 would be an investment year, and it was. Admittedly, those were lowered expectations. So, the short answer is yes. But with both all the improvements we've been making in music, but also with the addition of podcasting and audio books, it is a much more resilient consumer experience. Obviously, on the MAU side, '22 was a real outlier in terms of how much we outperformed. We think it's going to reduce friction and improve conversion over time. Inventive. At this point, we don't see any reason why any of our historical trends would change. Broken down by vertical, Spotify's premium gross margin was 28.0% (down from 29.1% in Q3 2021), while ad-supported gross margin was 1.8% (down from 10.5% in Q3 2021). And then you can chime in because I think some added context here might be pretty good as well. Click to share on Facebook (Opens in new window), Click to share on Reddit (Opens in new window), Click to share on Twitter (Opens in new window), Click to email a link to a friend (Opens in new window), Click to share on LinkedIn (Opens in new window), Click to share on Pinterest (Opens in new window), Click to share on Tumblr (Opens in new window), Submit to Stumbleupon (Opens in new window), Melvin Carters Cabinet is most diverse in St. Paul history. Next question from Benjamin Black on Marketplace. Mokave totake rcznie robiona biuteria lubna iZarczynowa. When we look at Q1, in particular, sort of our core margin, when we look at sort of music and podcasting is improving. And we also made tremendous strides in setting Spotify Park from everyone else in our space. Spotify Technology S.A. (NYSE:SPOT) Q4 2022 Results Conference Call January 31, 2023 8:00 AM ET. Analyst at a VC fund and Masters/PhD student in Clinical Psychology based out of Sydney, Australia. Yes, we definitely increased marketing a lot or significantly in 2022. Thanks, Rich. Users can either pay for the streaming service and listen ad-free or choose to sign up for a free subscription and listen to ads. shareholder interests. And what is the projected path to contribution? So, no specific guidance, but yes, there was a big ramp in 2022. Another question from Matt Thornton on margins. Despite Spotify's market leadership position and immense scale with 456m MAUs, they have struggled to generate consistent operating profits. It is positive, though. If you have an ad-blocker enabled you may be blocked from proceeding. The company invests heavily in research and development to improve that playlist experience an investment it hopes will deliver advantage in a highly competitive market. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Essentially, Spotify is a lot more complex of a business than it was several years ago. However, this was 200 basis points less than forecast. We do sometimes 10, sometimes hundreds of those within quarters. And then podcasting, both as it grows in size with advertising revenue, but also more efficient spending will mean that you'll see improvements there as well. And by all accounts, it was extremely successful, if not more successful than we even thought. WebSpotify corporate office is located in 19 Regeringsgatan, Stockholm, Stockholm, 111 53, Sweden and has 4,211 employees. We want to have a billion users, Paul Vogel, Spotifys chief financial officer, told attendees at the 19th annual MIT Sloan CFO Summit last month. The join flow is better, giving users the choice on payment methods and how they want to work with us and purchase from us. Polityka prywatnoci zawiera pen informacj na temat przetwarzania danych przez administratora wraz z prawami przysugujcymi osobie, ktrej dane dotycz. So, could you break out -- break down which investments are falling off that will drive the positive gross margin inflection in 2023 and 2024? $50 k. $61.5 k. $73 k. $50,119. Netflix, which had never existed before, was often compared to HBO, which turned out to be an inaccurate comparison, Vogel said. And I think that's a sign of maturity that you go for the growth first and then you seek the efficiency. Paul Vogel is the Chief Financial Officer of Spotify. As CFO, he is responsible for overseeing the companys financial affairs. Spotify is the worlds most popular audio streaming subscription service with 433m users, including 188m subscribers, across 183 markets. Vogel, who was interviewed byCharles Kane,a senior lecturer in Global Economics and Management at MIT Sloan, described how Spotify experimented with its service offerings before settling on a freemium subscription model. Gross margin of 25.3% was above guidance by 80 basis points due primarily to lower podcast content spend, along with broad-based favorability in our core music business led by strength in Marketplace. I'll take this and feel free to chime in, Paul. We will continue to work to build the platform of the future, and that will take investment in new opportunities that we outlined like podcasts and audio books. Can you help quantify the annual savings from the headcount reduction you announced last week? Now there are more than 6,000. He is Spotify, in a recent British regulatory filing, appointed Paul Vogel as a director, in anticipation of him replacing Barry McCarthy as the companys CFO early next year. Thanks, operator, and welcome to Spotify's Fourth Quarter 2022 Earnings Conference Call. Gross margin and operating expenses are expected to improve throughout the year, as we have mentioned previously, while free cash flow is expected to be in line with historic averages. Editor's note: This story has been updated to include quotes from Daniel Ek and Paul Vogel. All right. Spotify offered certain US staffers between October 2020 and September 2022 annual base salaries ranging from $75,000 to $369,500 across about 180 different roles, according to the data. We've grown from 100 million users to almost 400 million users over a six-year period of time, Vogel said. We've set up a new org structure that streamlines decision-making and prioritizes speed and efficiency. Thank you. $60,019. A special opportunity for partner and affiliate schools only. Spotify have hired their new Chief Financial Officer, plucking from their existing team someone they trust. Paul Vogel is new to the role of Spotify CFO, but not to Spotifyor to the relationship between finance and the tech/media industry. For the last four years, hes been at Spotify heading up Investor Relations and leading the FP&A (Financial Planning & Analysis) and Treasury teams. Heres who they are and what the highest paid make, Police: Stay away from MN State Fairgrounds during emergency response training. Okay. I would now like to turn the call over to Bryan Goldberg, Head of Investor Relations. Indeed, Ek's central thesis for heavily investing to build a multi-product platform is that newer products (e.g., podcasts and audiobooks) do not have the same artificial gross margin constraints as their premium music revenue. CEO Daniel Ek and CFO Paul Vogel Break Down Q2 Earnings in Latest Episode of Spotify: For the Record. When do you expect them to be released? However, we'll need to wait until next quarter for concrete guidance on margins. All right. And I don't have anything specific to announce at this point, but we are constantly discussing with our rights holder partners around various price increases that we would be doing. Given this predominant bear narrative, Spotify's gross margin is arguably their most anticipated financial metric when they report quarterly results. Paul Vogel, Spotfiy CFO, joins Closing Bell to discuss. 2023 marks a new chapter for us, but our commitment to achieving our goals remains the same. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Prior to Russias invasion of Ukraine, according to Vogel, Spotify was trending ahead of its Q1 guidance of adding a net 8 million total users, including 3 million paying customers. I/we have a beneficial long position in the shares of SPOT either through stock ownership, options, or other derivatives. Next question from Doug Anmuth, users and subscriber growth in '23. Analysts Disclosure: I/we have a beneficial long position in the shares of SPOT either through stock ownership, options, or other derivatives. So, we wanted to tackle this heads on. So, if we can be a partner to creators and help them sell more of their tickets, that is a meaningful increase to many artists' livelihood, which is great and something we're focused on. Tworzymy klasyczne projekty zezota ioryginalne wzory zmateriaw alternatywnych. Spotify, in a recent British regulatory filing, appointed Paul Vogel as a director, in anticipation of him replacing Barry McCarthy as the companys CFO early next year. So we've seen really strong trends in general across all of podcasting. Our next question is going to come from Justin Patterson. It's time for Spotify management to begin to "walk the walk" rather than "talk the talk". With respect to first quarter guidance, we continue to see strong momentum in MAU and anticipate reaching half a billion users by the end of Q1. While Spotify's lack of consistent operating profitability is undeniably frustrating, I am not overly concerned for the following reasons: First, Spotify is in no danger of a capital raising with consistent positive free cash flow and a fortress balance sheet consisting of 3.7b cash, cash equivalents, and short-term investments. So even within Q4, it was pretty up and down. We don't always talk about them, some of the things that come out 6, 9, 12 months later. So inevitably, you should expect our hurdle rate for new investments to be higher. So obviously, we don't give 2022 guidance anymore. We're also forecasting EUR 3.1 billion in total revenue, a gross margin of roughly 25%, excluding severance charges and an operating loss of EUR 194 million with the latter reflecting EUR 35 million to EUR 45 million in severance charges within our operating expenses. What once was a free business that was sort of there to help supplement the growth of the premium business has now evolved into its own standalone business that is still growing and thriving, Vogel said. Okay. WebPaul Vogel, Spotify CFO, joins 'Closing Bell' to discuss the company's latest quarter and how his business differs from Netflix. Joining us today will be Daniel Ek, our CEO; and Paul Vogel, our CFO. And the answer is, no and yes. Spotifys own subscriber figures continue to climb. So that's going to be a net positive as more and more of the revenue starts shifting to those categories. - Spotify CFO Paul Vogel, Q3 2022 Earnings Call. BIUTERIA, KOLCZYKI rcznie robione, NOWOCI, BIUTERIA, NASZYJNIKI rcznie robione, NOWOCI, BIUTERIA, NOWOCI, PIERCIONKI rcznie robione. And during 2023, you'll see a lot of new things roll out in the audio book category from Spotify. "We want to make our platform the de facto platform for podcasts for Spotify users," Spotify's CFO Paul Vogel said on an investor call. And obviously, I look forward to sharing more on Stream On, sort of wink-wink around all the updates that we're planning throughout the year as well that I think will mean a lot for both music and podcasting and beyond. And I know some investors don't believe that we're serious about it, but hopefully, my remarks today shows that we are really, really focused on driving efficiency going forward. I wrote this article myself, and it expresses my own opinions. Spotifys journey to finding a successful model is applicable for digital companies today that are trying to grow their customer base through subscriptions. But our creators are trying to grow their audience on Spotify. We'll start with opening comments from Daniel and Paul and afterwards, we'll be happy to answer your questions. Base salary 100,000 (GBP pounds) Stock $130000 (US Paul Vogel is 47, he's been the Chief Financial Officer of Spotify Technology S.A since 2020. As such, if Spotify is able to acquire customers that are valuable in the long-term (i.e., have a high customer lifetime value), it makes sense to be more aggressive with S&M investments to gain market share and strengthen their MAU lead over competitors like Apple (AAPL) and Amazon (NASDAQ:AMZN). We haven't given a timeline on that. And how should we be thinking about the business model and the market opportunity? Does Spotify need to figure out music discovery knowing that TikTok appears to be ramping up to launch a music subscription service in the U.S. and Europe later this year? We're definitely seeing people take up the offering but we're nowhere done from where we want to be and where we believe the category can be doing. We outperformance of EUR 3 million. Questions can be submitted by going to slido.com, S-L-I-D-O.com and using the code #SpotifyEarningsQ422. Vogel had no idea where Spotify was headed that day it went public, but he hoped it was somewhere exciting. Unfortunately for shareholders, Spotify missed gross margin expectations for Q3, reporting a gross margin of 24.7%, well below their internal guidance of 25.2%. We've talked about the improvements in podcast gross margin as well as we expect that to get better throughout the year. Earn your masters degree in engineering and management. We want to have a billion users, Paul Vogel, Spotifys chief financial officer, told attendees at the 19th annual MIT Sloan CFO Summit last month. Did factors like geography or a listeners age influence who used it? It's things that we think are going to drive -- improve engagement, improve users, improve subscribers. Hey, everyone and happy new year and thanks for joining us. And you're right to point out that TikTok obviously, is a formidable competitor, I think, to any platform in the world today, no matter what field you're operating in. Next quarter is unlikely to change anything material about the "stock story" for Spotify, but I'll be closely watching management's guidance for 2023 margins. And any specific areas of the business to call out that were impacted more so than others? Paul Vogel then revealed precisely how not yet profitable podcasting was. As of Q3 2022, Spotify had 4.7m podcasts on their platform, up 47% from 3.2m as of Q3 2021. I think there's -- look, there's a number of factors that are going to -- that improve gross margin. So, we had really strong Marketplace growth overall in 2022. Is this happening to you frequently? No recommendation or advice is being given as to whether any investment is suitable for a particular investor. One of the big things we're seeing is users are asking us, help me find more great things to go watch. Is audio books as a category working? They're trying to engage more with that audience, and we're obviously trying to help them monetize that audience even better. Hired less than a year ago, Jason Sole director of the mayors Community-First Public Safety Initiative said he was forced to resign after a series of clashes with the mayors leadership and left the position Feb. 4.Sole made $102,000. We see a double-sided win-win here, which long term will translate into business opportunity. These charts show the average base salary (core compensation), as well as the average Turning to gross margin. All right. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. Paul Vogel is the Chief Financial Officer at Spotify. We want to be the Next -- another question from Michael Morris. Okay. A huge part of that, especially for the music audience is obviously touring. Do you expect any change to that conversion or to churn given the large MAU cohorts over the past couple of years? We've got another question from Doug Anmuth on marketing. We did all of that testing for years before we said, Okay, its worth us to roll it out globally.. Yes, the podcast reaching breakeven within several years. We've got a follow-up question. And there wasn't really any specific area. Sober home operators oppose regulations in MN House bill. Yes, I can be quick now. She requested a leave of absence from the mayors office from January to June to focus on the Legislative session. They -- if Spotify does well in the market, it generally increases the revenues for the labels as well. And we've seen that time and time again that this close partnership generates material benefits for both companies over time. So, it's early days, but positive. Since then, the Swedish company has watched its number of subscribers tick past 400 million as it expands into podcasting, live audio, and audio books. So, what costs are driving Spotify's declining operating margins? Yes. But again, I think we believe we'll get the benefits of some of those moving forward into 2023, and you'll see the incremental investment slow and the benefits kind of hit in '23. Moving to operating expenses. And with respect to churn, we don't obviously give those numbers out. A full-time MBA program for mid-career leaders eager to dedicate one year of discovery for a lifetime of impact. So, by the end of the year, we had more than 100 million tracks on our platform and more than 5 million podcasts and more than 300,000 audio books being enjoyed by almost 0.5 billion listeners. Travel the world to capture moments and beautiful photos. Our next question is going to come from Michael Morris on advertising. I think we've talked about a lot of them. Ive got 10yrs experience. In FX neutral terms, revenue from paid subscribers only increased 13% YoY while ad-supported revenue grew a measly 3% YoY in constant currency. Before we begin, let me quickly cover the safe harbor. Spotify is the largest global audio streaming platform with 456m MAUs. WebPaul Vogel Phone Number Found 5 phone numbers: View Paul's Email & Phone (It's Free) 5 free lookups per month. Next question is going to come from Doug Anmuth on gross margin. Third, Spotify is currently in the midst of an "investment supercycle" with high R&D spend to build out new products (e.g., ad marketplace, live audio, podcasts, audiobooks), which should theoretically result in a better customer experience, leading to lower churn and higher pricing power. And the usual way to do that is not to try to increase prices too early, but keep a competitive price that attracts the most amount of users onto the platform. Mokave tobiuteria rcznie robiona, biuteria artystyczna. The main drivers of gross margin compression for Spotify were: While Spotify's poor ad-supported gross margins are easily attributable to the launch of new products and being in an "investment supercycle" (note: this also occurred during 2020 and caused a temporary suppression of gross margins), it is concerning to see the medium-term plateau in Spotify's premium gross margin, which is suggestive of reduced bargaining power with suppliers (i.e., the record labels). No credit card required. In some markets, we're mostly focused on growth. To ensure this doesnt happen in the future, please enable Javascript and cookies in your browser. Well, we've been making many investments. Our next question is going to come from Deepak on user choice billing. Obviously, you can do the math. Total Q3 revenue was 3.04b, which was up 6% QoQ and 21% YoY, but in FX neutral terms, total revenue only grew 12% YoY, Spotify's slowest rate of revenue growth in several years. We'll be available on our website and also on the Spotify app under Spotify Earnings Call Replays. We're fully aware of what's going on globally. So, the answer is yes to 2022 being the peak drag from podcast. I imagine in five to 10 years we will have 10,000-plus employees, he says. As we previewed last quarter, free cash flow was negative in Q4 due primarily to timing shifts around certain payments. During this call, we'll be making certain forward-looking statements, including projections or estimates about the future performance of the company. And there are certain shows that work really, really well for us, and there shows that didn't perform as we expected. And then there's the company that releases something that it knows needs work and then rapidly improves from there. So first off, we have great relationships with all of our music partners and are in constant dialogues with them about their performance and our performance in all the markets around the world. One of those strategies would be to grow the number of people that we can attract to join our platform. It's hard for people to understand when they're looking at us because it looks like it's an inferior product or an inferior strategy. Now what you're probably asking underneath all of that is that it's been a drag on the gross margin side. However, to be clear, this doesn't mean we're changing our strategy. And that is a big shift, but it is also what we said during the Investor Day in June. Our view is, why shouldn't it be Spotify?" Szybki kontakt z administratorem: kontakt@mokave.pl. How is advertising revenue been trending in the first quarter of 2023? And when I look at the totality of what we've done, one thing that stands out to me, and it is that it's not always linear. Now it's perhaps YouTube and TikTok, et cetera. We have the same notion around podcasting. Such investments have continued (or even accelerated in the case of Meta Platforms) despite substantial public pressure from investors/analysts to cut costs. A 12-month program focused on applying the tools of modern data science, optimization and machine learning to solve real-world business problems. However, bears will be licking their lips at guidance for gross margins to further decline to 24.5% and for operating losses to widen to negative 300m, largely due to the same factors as in Q3 (slowdown in ad-supported revenue, heavy product investments, and currency fluctuations). I mean its early days on audio books. So I'd say at a high level, we still remain very confident with the margin profile and margin guidance we gave at the Investor Day. It was pretty broad-based across most of the divisions within Spotify. Bring a business perspective to your technical and quantitative expertise with a bachelors degree in management, business analytics, or finance. Do you still expect 2022 to have been the peak drag from podcasts? And given the timing within quarters, we may see free cash flow turn negative in Q4, but we still expect to be free cash flow-positive for the year and moving forward. Our three biggest competitors [are] Apple, Google, Amazon, Vogel said. In short, the main bear case for Spotify has always been that while it may be a good "product", it is not a good "business" or "investment". And while it was really great to close out 2022 on such a high note, the fourth quarter is -- I think we just really one of many proof points that shows that the investments we made over the last few years are really paying dividends. @jordanmartenst1. So, I look forward to sharing more about our evolution and all the things that we're building at our upcoming Stream On event on March 8. We've got another question from Rich Greenfield on the product. And as that's happening, their retention increases. Recent estimates show that HBO Max and HBO combined have more than 40 million subscribers whereas Netflix has more than 200 million subscribers. So, I think the most thing if we kind of up level this is our priority is to grow revenue as fast as we possibly can. Apply to Production Worker and more! So, we don't go through all of them. We actually outperformed those by about EUR 50 million or so, plus or minus. We said a number of times that 2022 is going to be an investment year. leadership position, Spotify as an investment has attracted significant scepticism from investors. But we see this often where we have some years where we over-index on MAU or we over index on subs, and it can change even throughout the year in terms of how we're trending. So, what you probably have seen is one of those experiments. However, Spotify management is confident that gross margins will improve in 2023 as the digital infrastructure to support their multi-product strategy becomes more established, reducing the need for further product investments. And to meet this objective, we are also rethinking how we operate. And we broke out the various verticals where you would see that music have been making steady improvements, but obviously, our podcasting business had been a drag to our gross margin profile. Good morning, and welcome to Spotify's Fourth Quarter 2022 Earnings Conference Call and Webcast. When combined with our increased focus on speed and efficiency, we are confident in our ability to continue our double-digit top line trajectory in conjunction with improvements in profitability.
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