Looming interest rate hikes have caused a dramatic rotation away from high-growth tech stocks since the beginning of the year, and streaming giant Spotify (NYSE: SPOT) is no exception. The music platform is down almost 20% year-to-date (YTD) amidst widespread market volatility.
This hasn't been helped by the recent controversy surrounding its exclusive contract with the 'Joe Rogan Experience' podcast, with many high-profile musicians removing their content from the platform in protest of the podcast's alleged spreading of misinformation.
With the company set to report earnings this week, investors will be hoping for some positive news to take over the headlines following a tumultuous week for the firm.
When is Spotify's Q4 earnings date?
Spotify is set to report its fourth-quarter 2021 earnings at 4:30 PM EST on Wednesday, February 2, 2022.
How do I listen to Spotify's earnings call?
Spotify's earnings call will be webcast live on the companies own investor relations page. A full replay of the webcast will also be made available following the session. The call transcript, as well as the shareholder's letter and the financial statements for the quarter, will all be made available on the same investor relations page.
What to expect from Spotify's earnings
Much was made of Netflix's recent announcement that subscriber growth had slowed significantly in the last quarter. This sent shockwaves across Wall Street as investors began to question any and all subscription-based streaming services. Spotify is now under intense scrutiny to deliver on its subscriber rate to avoid the same fate as Netflix -- a more than 20% drop in stock price directly after its earnings call.
Spotify does have a safety net, however -- its advertising revenue. Despite its premium, ad-free subscription being much more valuable to the company, its free tier still maintains a 9% gross profit margin. The company has 381 million monthly active users, of which 209 million use the company's free offering. Should subscriber growth slow, investors can take solace in the fact that the company can still generate revenue through its significant number of non-premium users.
Shareholders will also be eager to hear how the company plans to continue to innovate. Spotify has made a concerted effort to develop its podcast offerings throughout 2021, with multiple acquisitions made to expand its ability to produce and distribute spoken-word media. Investors will be looking for an update on how these purchases have faired, particularly with respect to generating monthly users.
Spotify is expected to post revenue of $2.96 billion with an estimated loss per share of $0.47, which would represent quality growth from figures of $2.56 billion and -$0.78 respectively from the year-ago quarter.
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