FMP

FMP

Enter

Spotify Technology S.A. (NYSE:SPOT) Q3 Earnings Overview

- (Last modified: Nov 14, 2024 9:57 AM)

twitterlinkedinfacebook
blog post cover photo

Image credit: Google Images

  • Earnings per share (EPS) of $1.61 missed the expected $1.88.
  • Revenue of approximately $4.44 billion, slightly below the forecasted $4.48 billion.
  • High valuation metrics with a price-to-earnings (P/E) ratio of about 196.11 and a price-to-sales ratio of around 6.

Spotify Technology S.A. (NYSE:SPOT) is a leading music streaming service known for its vast library and personalized playlists. The company competes with other streaming giants like Apple Music and Amazon Music. On November 12, 2024, Spotify reported its third-quarter earnings, revealing an earnings per share (EPS) of $1.61, which was below the expected $1.88. The company's revenue was approximately $4.44 billion, slightly missing the forecasted $4.48 billion.

Despite the earnings miss, Spotify's Q3 report showed mixed results. The company exceeded expectations in user additions, which is a positive sign for its growth. However, the revenue shortfall has raised concerns about Spotify's valuation and future growth prospects. The stock's recent rally seems vulnerable due to risks like inconsistent user trends and potential customer churn from price increases, as highlighted by Seeking Alpha.

Spotify's financial metrics reveal a high valuation. The company's price-to-earnings (P/E) ratio is about 196.11, indicating that investors are paying a premium for its earnings. The price-to-sales ratio is around 6, meaning investors pay $6 for every dollar of sales. These figures suggest that the market has high expectations for Spotify's future growth.

The company's enterprise value to sales ratio is approximately 5.84, reflecting its total valuation in relation to sales. The enterprise value to operating cash flow ratio is around 63.88, which may indicate how the market values Spotify's cash-generating ability. Despite these high valuations, Spotify maintains a moderate debt-to-equity ratio of about 0.31, suggesting a balanced approach to leveraging debt.

Spotify's current ratio stands at approximately 1.56, indicating a good level of liquidity to cover short-term liabilities. Despite the challenges, several analysts have increased their forecasts for Spotify, suggesting a positive outlook for the company's future performance, as reported by Benzinga.

Other Blogs

May 14, 2024 11:41 AM - Sanzhi Kobzhan

The easiest way to calculate stock’s target price and why the target price is important.

A stock's target price, also known as its fair value, is an indication of what a share can cost based on the company’s forecasted financial statements. It is important to know a stock's fair value to find undervalued stocks with great growth potential. Let's consider how investment analysts calculat...

blog post title

May 24, 2024 9:30 AM - Rajnish Katharotiya

How to Access and Analyze Earnings Call Transcripts

Earnings call transcripts are invaluable resources for investors, analysts, and financial enthusiasts. They provide insights into a company's performance, strategy, and future outlook, making them essential for making informed investment decisions. With Financial Modeling Prep, Earnings Call Transcr...

blog post title

May 27, 2024 3:30 PM - Rajnish Katharotiya

The best 5 GPU stocks other than NVDA

In the ever-evolving world of technology, certain sectors have consistently demonstrated exceptional growth and innovation. The graphics processing units (GPUs) industry is one such sector, offering investors a golden opportunity for potentially high returns. In this blog, we'll delve into why inves...

blog post title
FMP

FMP

Financial Modeling Prep API provides real time stock price, company financial statements, major index prices, stock historical data, forex real time rate and cryptocurrencies. Financial Modeling Prep stock price API is in real time, the company reports can be found in quarter or annual format, and goes back 30 years in history.
twitterlinkedinfacebookinstagram
2017-2024 © Financial Modeling Prep