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"?