Spotify Technology SA (NYSE:SPOT) is poised to deliver impressive profits and sales growth for the second quarter of 2024 when it hands down its latest earnings report.
Earnings per share are set to surge to €1.02 (US$1.12) from a loss per share of €1.55 for the same period in 2023.
The music streaming platform expects to report an operating income of €250 million, which includes €13 million in Social Charges, compared to an operating loss of €247 million a year ago.
It forecast revenue of €3.8 billion (US$4.1 billion) for the quarter, in line with the Street consensus and marking growth of almost 20% from the year-ago quarter’s €3.18 billion.
This includes an expected 140 basis point headwind to growth year-over-year due to foreign exchange rate movements.
Spotify expects to add approximately 15 million net new monthly active users (MAUs) during the quarter, bringing total MAUs to 631 million.
Total premium subscribers are expected to reach 245 million, marking the addition of 6 million net new subscribers during the period.
Gross margin is expected to be 28.1%, driven by improvements in music, podcasting and other cost of revenue, compared to a gross margin of 25.2% in Q2 2023.
Spotify will report earnings on Tuesday, July 23.
The company’s shares closed at about US$295 on Wednesday, having gained more than 55% in the year to date.