Spotify has released a financial outlook for Q1 and 2018, ahead of its listing on the stock market in early April. The company expects to grow both monthly active users and premium subscribers by around 30 percent in 2018.
In Q1 alone, the number of monthly users is expected to increase 28-31 percent year-on-year to 168-171 million, and Premium subscribers will grow by an estimated 41-46 percent to 73-76 million. That compares to a reported 159 million monthly active users and 71 million Premium subscribers at end December.
This should take quarterly revenues 22-27 percent higher, to EUR 1.10-1.15 billion in Q1, as negative currency effects dampen the subscriber growth.
The streaming music provider estimates its gross margin at 23-24 percent in Q1 and the operating loss at EUR 50-80 million. The gross margin should stay within the range of 23-25 percent over the full year, while the operating loss for the 12 months is expected at EUR 230-330 million. That latter includes EUR 35-40 million in one-time costs for the stock market listing.
By year-end, Spotify expects to have around 200 million monthly users, forecasting annual growth of 26-32 percent in 2018. The number of paid subscribers should grow slightly faster, by 30-36 percent this year to 92-96 million. Annual revenues are estimated at EUR 4.9-5.3 billion, equal to growth of 20-30 percent.
