Spotify’s share price rose 12.7% to $112.71 on Tuesday following the company’s earnings release for 2022’s fourth quarter earlier in the day.
Now with a market capitalization of $21.8 billion, Spotify has more than overcome the investor exodus following its underwhelming . After delivering a weaker-than-expected gross margin on Oct. 25, Spotify’s share price fell 13% to $84.42 and bottomed out at $69.29 on Nov. 4. Tuesday’s closing price marked a 62.7% improvement in fewer than three months.Investors want Spotify to continue adding subscribers while improving its margins. Tuesday’s earnings results delivered on both fronts. Its fourth-quarter subscriber growth of 10 million handily beat guidance of 7 million, giving the company 205 million subscribers globally.
In the fourth quarter, Spotify’s gross margin of 25.3% was 80 basis points — eight-tenths of a percentage point — above guidance “due primarily to lower podcast spend along with broad-based favorability in our core music business,” said CFOSpotify’s licensing deals with record labels and publishers give it little room for improvement on recorded music margins, which were 28% in 2021.
, Spotify executives said they expect podcast margins to reach 30-35% within three to five years and 40-50% further in the future.on Jan. 23 that it would lay off 6% of its global headcount. Among the departures — though technically not part of the layoffs — was chief content officer, the engineer of the company’s strategy to build its podcast business by attracting marquee names such as
STREAM FLOWERS
Cardi’s spike rates grew
Notice how cardi’s streams don’t grow
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