Instead, we just have this: Spotify’s latest guidance, issued in February (within its FY ’21 results), suggested that the firm’s subscriber base would close Q1 2022 at 183 million, up by 3 million on the 180 million subscribers it counted at the end of 2021. The section of Netflix’s shareholder letter in Q1 that admits the firm is now projecting a loss of 2 million subscribers in the second quarterīack in early February, Spotify irked some influential figures on Wall Street by announcing that it would no longer be offering guidance beyond the next quarter in its fiscal calendar.Īs a result, Spotify is now refusing to publish any projection for where its global subscriber number will end up at the close of 2022. That’s quite a collapse from the equivalent quarter in 2021, when Netflix added 1.5 million subscribers. It was that Netflix is now projecting it will also lose a further 2.0 million paid subscribers in Q2. Perhaps the most troubling element of Netflix’s Q1 results last week wasn’t the 200,000 net loss in global paid subscribers (although that’s primarily what sent its share price into a tailspin). MBW is sadly not an investment bank (one day, friends, one day), and therefore we won’t have the ear of Spotify’s leading executives on the firm’s earnings call tomorrow morning.īut if we did, here are three tricky questions we’d definitely ask them: 1) What’s going to happen to Spotify’s subscriber base by the end of 2022? We don’t yet know the numbers Spotify is due to announce in less than 24 hours’ time. Now, it’s Spotify’s turn in the harsh glare of Quarterly Investor Land.
You don’t need MBW to tell you that – for any consumer-facing subscription business – this was a quarter rocked by macro events: from household inflation / cost of living prices shooting upwards, to Vladimir Putin’s widely condemned invasion of Ukraine. Tomorrow (April 27), Spotify will announce its latest quarterly fiscal numbers, for Q1 a.k.a the first three months of 2022. The result: Over the past 14 months, Spotify has lost no less than $47.8 billion in market cap value (from $69.35 billion to $21.51 billion, according to YCharts).Īnd these numbers might be about to get worse. That’s down 54% on where it was on the opening trading day of 2022 (January 3) it’s also less than a third of the size it was ( $364.59) at its all-time peak in February last year. It closed yesterday on the NYSE at $112.14. Spotify‘s share price is not in a good way. They are our ‘quick take’ reactions – through a music biz lens – to major entertainment news stories.
MBW Reacts is a series of short comment pieces from the MBW team.
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