Spotify Technology (SPOT) 12 Nov 242024 Q3 Earnings call transcript

Good afternoon, and welcome to Spotify's Third Quarter 2024 Earnings Call and Webcast. [Operator Instructions] As a reminder, this conference call is being recorded.

I would now like to turn the call over to Bryan Goldberg, Head of Investor Relations. Please go ahead.

Thanks, operator, and welcome to Spotify's Third Quarter 2024 Earnings Conference Call.

be our will our Christian today CFO. us Daniel CEO; Ek, Luiga, Joining opening and from we'll start comments We'll with Daniel to your be answer Christian, questions. happy afterwards, and using submitted to by Questions #SpotifyEarningsQXXX. can slido.com be and the going code and Analysts then participants find most vote into they can relevant. questions all can the directly ask the questions Slido on If can in at Relations we'll add e-mail your reason, ir@spotify.com, don't access have you some Investor for to you question. Slido, and

the we let quickly harbor. Before cover safe begin, me

making certain about risks be assumptions the deck, shareholder statements, today's including of During company. materially estimates we'll filings this subject in are and and and forward-looking projections or results on could call, Commission. current differ the the in to and call, Actual that Securities with Exchange are expectations performance because our future uncertainties. discussed based of These statements on factors

in and the Form Relations our During also on measures X-K. can also Reconciliations this call, furnished website, we'll found between shareholder to certain measures. our non-IFRS today Investor financial section financial of our non-IFRS deck, IFRS and refer be financial in

with I'll And to it Daniel. that, over turn

All joining us. thanks right. hey, for Bryan, Thanks, and and everyone,

video few time the couple will So this L.A. week the to on platform. interest to have of of be our we'll creators. we're of And to over spend next expansion announcements that in sure days, a with I'm related you

more So that. to come on

so track new I'm incredible have welcoming have leadership have want you hope and benefit Christian grateful I to rest already I But brings and expertise to our of I the opportunity CFO, him the know the Christian proven start by call his to of Spotify, do met record. this Luiga. and some you to soon. of

to he's take to testament CFO. as Interim is that job the role. been done also Ben he's I fantastic a to a seamless, moment huge which all brought for It's thank the Kung to wanted

is for on gross a We beats both another income. in you've significant lot to we year quarter. year we're profitability. of full operating me margin subs standout first refer the can positives QX as and MAU. track on what heard our this had and on and line, and see, Revenues were As there's outperformed you of in monetization, of

and also free quarter had We another record flow. of sequential all-time cash

XXXX for Back key at we a this growth, point marks achieved ahead our schedule. clear where and slightly successfully we Day, those Investor surpassed set goals quarter even doing Spotify's so of targets, and

demonstrates saying great business. team year. thanks the way what think just to its I and dedication, a vision been a become on reality. product but over this a well and work their we've hard to past this is great for making our not Spotify big A

years, optimizing This past focusing led year additions. continuously our profitability. we've record XXXX in resources few to Over growth for modulated time the and between and MAU on our for approach Premium and

the to And transform on included as environment necessary while shifted, the efficiency. focus we cost made macro our And did but continuing However, expanding into efforts our and adjust finding reinvestment. a right this between balance demonstrate tiers, subscription the importance seen, the more name video and new launching bringing Europe, of onto today's the just in few. to we to which and business, on difficult growth we've consistently platform, Audiobooks decision what results

out started we QX asking, we I'm our close all what QX head as just the business. and the does monetization you're sure of for the will and beyond? underlying year, fundamentals laser-focused on year, We as So this into mean

profitability years progress of to make expect of we to the expansion for our runway which forecast, plenty key further our come. at across up us metrics, and sets Looking all with growth in

you of What's today. merely its unfolding to knock-on landscape ever I've been with is as points it current this opportunity here not heads I inflection we're often. mistake, am either where conviction. technology. down, future about let thrilling all or of by for and the slip energized come the fully the a full humbling. They're like no and and can Moments seize building make effects, optimize of We're press possibility. committed, choosing can But you latter, don't for forward in both with as AI,

music see in about So drive one business. seize as In same the you potential in that connect new ways seen the a across great ambition to XXXX like has what's company picture management innovative think year which with stuff the before. for Spotify and presented All and in transformative by operates I also but music growth to will further discovery you've never disciplined shifts near the the artists technology. core beyond, industry, happening term, that for opportunities this and fans our

And price the deepen just new entered committed Spotify successfully the users. as that pays audiobook entire bring to sustainable for enhance relentless value into value platform for stakeholders exceptional on making drive and the delivering we how a And we're all targeted investment Spotify across this the our also focus is ecosystem. to well the growth user we space, beyond areas, consistently expands we

So of goals our defined we but bold relentless and always, Day to next. unwavering, as conclude, innovation journey our commitment the what's by Investor remains be pursuit shared to at will, long-term the

numbers. then to it provide his details into Christian And he'll with turn share that, the I'm over and perspective going to to more

in more and working scaling to teams I'm goals. and talented the for be and our us. impressed in with towards and Spotify. I great excited I short efficiently couldn't onboard thanks, joining Daniel, Thanks, business time, I met I'm long-term allocating forward potential now business. just the for our the I've product everyone, see capital to a together join been looking

at another and guidance then by for quarterly XX we strong MAU quarter to finishing million million. business. to subscribers, net X outperformed XXX grew Both results. by and growth X the X the Turning MAU Quarter subscriber marked million our million XXX million. added

growth basis associated with rose Premium a year-on-year and grew currency billion. XX% XX% basis to on subscriber revenue acceleration revenue increases. year-on-year Total X constant constant currency ARPU continued price by on a EUR driven

saw advertising volatile another brand-related X% currency-neutral of Our business year-on-year, on campaigns. of spending quarter growth reflecting market

our delivered gross of pleased on Moving we on target to intermediate-term profitability. We're have margin that XX%.

fact, gross a content at favorability. by surpassing basis XX primarily guidance points margin cost in In record due came to XX.X%,

of gross strength. EUR also appreciation. were quarter, a XX price higher million income XX by Operating was forecast million social our XXX aided profit to in by impacted EUR due income which, the Operating record set new in share charges million EUR than

As since our a outside we our for don't the business share in they price reminder, movements outlook are control. forecast

free profile quarter. flow was cash by as here working the was XXX in performance million capital favorability. well the And Finally, net our driven record a operating income as EUR improved

X over fourth forecasting increase million quarter X are and to we subscribers, guidance, increase MAU, million quarter million ahead Looking from quarter an million an XXX of of X. XX XXX

also in total X.X are forecasting We revenue. EUR billion

As headwind a quarter have in impacted to movements These results, foreign EUR you may X business by our seen million. larger-than-expected in X. quarter have rate movements outlook today's favorable the created exchange also XX approximately

of anticipate operating also full XXX operating EUR our gross We of billion. to EUR first million, and income year margin X.X pointing XX.X% positive income of of

incorporated levels seen with net the recently churn price we very is we've X into have consistent With also our markets what expect is X low the that This additions, announced quarter outlook. where we respect historically. in increases to subscriber of

monetization. incorporated have also We better ongoing drive our subscriber actions to

revenue increases expect our constant they on lapping the ARPU approximately we X overall, XX currency will of basis pricing a of a price had towards we in markets, point to year-on-year lead in XXX contribute quarter growth that ARPU year's an outlook. new basis will XXXX Although in that moderation growth

strides In terms exceptional of our improvement, has XXXX, should our we our The such. made improvement been with year. rate recent as viewed the margin Daniel and as mentioned, be significant gross gross we margin in pleased own very of this exceeded even plans, are which in

Looking continuing will see long over grow and substantial and margins on focus by and disciplined product monetization. our ahead, runway we business management, be via improving investments, which income a driven the targeted improving run, to

Finally strong cash EUR we trailing equivalents sheet X.X of EUR flow allocation, in billion. and a in cash debt X.X free an billion XX-month EUR exchangeable X.X with a profile and billion on and capital balance have

As priority business for invest a sense our company, returns. the sustainable top high to that remains make in opportunities growth with

shareholders we positioning heading course, are the pleased our year-end to building of as our Overall, going overall looking with of into our are, very as framework forward and on forward. part momentum well. considering We our

back you, for hand to Q&A. Bryan, things that, I With

to All be We'll how right. their any Christian. respect Again, Thanks, vote reading people the questions, questions. order they #SpotifyEarningsQXXX. got the you've to up if for the preference please with queue slido.com, in appear in questions go

capital between is scale? returns? profitability you allocation. on Sheridan Eric investments a you possible levels to can and capital to are Today's question to approach first priorities thinking come How your frame for from And about allocation as your going multiyear continue capital growth capital

made. emphasizing in remark for an and and the and company. have to see think that strong And again, we back now on the to it's really LTV-over-SAC continue for It healthy focus just the in me I how are and and the past main with ratio. those a have. we believe now and going but we create the to how forward, others do And investments for that fantastic this sheet profitability a Well, we which we question. company look audiobooks is great my to this to important amazing It's good made investments balance growth, I journey in we also go have have start brought should returns the is focus sustainable

what come your is the Can versus question color further on margin you sequentially? from expansion margin Batya for margin drove provide What are next gross on to the gross some more The of performance. beat going drivers outlook? Right. Levi

gross a quarter way margin actually improved X. gross margin. of is a well and mean, has it that I continuation we marketplace good developing was The you. have Thank in the that a very program improved

reason rate top And have through that, payment X I'm have not going future the also and is that's comes I much the for go have publishing for improvement. on. to And And costs, that and our and We X reason add also quarter scaling that on streaming drivers. on the are quarter in favorability of we that to U.S. we books. delivery costs that

Okay.

comes next Anmuth XXXX. Doug on from Our question

increases, other drivers You've leverage XXXX, you thinking more now there the How across price new improvement? initiatives? medium-term reached marketplace, bundling Or the low end into are your of financial of about incremental targets. same podcast of are

Yes, of do believe it's kind a bit both. of I really

of initiatives, at you later much too. As you would too. probably the certainly But already the of yourself. part the kind look that continuation to mix, the about we audiobooks of I are looking pretty add XXXX, of spoke new it's trends you and XXXX, into a year, at go some them as

pushing relentlessly keep value-to-price through know on where there as the what lens to now about. ratio we story we company, history we the will are And the if of that and this been more for keep consumers? that our our of of we do to really us think proven us. So a talking really we envelope one our of expecting consumers through if take do public add value and more by Because for How innovating year. focus we keep constantly Spotify, you price we've we has and know that us I eventually, that, be constantly that

Okay.

is next they to going expect have pricing. labels Patterson industry question come on to recently prices from that The Justin Our increase. signaled record

own setting Spotify need to your broader relative you the do competitors the in peers, think to relation innovation you to about to at price Given raise Do how support price industry? increases? product price

Spotify. we look, value-to-price. great the proposition fact, good Spotify a testament feel to And in price is And that and Yes. I mean, about are leader. I many we our a offering markets, we in think really at of have the

product is that set the in every Now said, so in not marketplace respect an thing. the well, with all that of endless obviously, competitive lives as

relentlessly And than a we however, set, quite and to about how concepts can value talk more in we these that measure the keep value. past are how The key competitive adding about you've thing, speaking heard the do is our on consumers bit. we rather focusing us

everything hear us talk you churn. about So from

low for and about You being indicator churn talking hear so a us engagement on. leading

metrics to that them we enhancing relentlessly. have as see all opportunity are we our proposition and keep we and when engagement customers, with and these well. will our our we're price raise So And tracking developing eventually

Okay.

the reports you own exchange from quickly some demand-side Ehrlich such built platforms have you've ramp can next question on can up, Can "move into time and been Our Trade Desk. There you The on scale? on comes as Jessica your Reif needle" when your revenue? tie to ad provide color advertising it will And advertising. the that how

I our mean, over about direct therefore, funnel spend. ourselves ads to type exposure brand also. Yes, years remind to we've the heavily journey I seen thank you. we're we trends. the the on and on business an today that And want reliant of ad I been built the mean, just sales has business top have macro

with as a diversified platform our built So now have Desk ad The this, changed exchange and Trade and on moving and this test we Spotify with pilot.

that impact is we and will It going What of trying a the out is XXXX testing do days. see year this, see early we will XXXX. and into be

to new that important aren't deliberate time, at help that about change. us into auction excited same also, are We the and very it's how we're will to to these we careful the environment, very out and channels. roll we But supply this

Okay.

offering. next Richard Our question from Premium product comes on a Super Greenfield

consensus talked the will Spotify to the of need the While to have the want to labels make there be to be does What be? or some And artists want publicly how offering appear artist doesn't the this, a be. work? involved labels record this product what about of to

Yes.

overall, a past So in talked quarters have as about we just this well. reminder, the as

growing We lot consumers to in think love, the development industry more about should early will too. Spotify And can't you are excited SKUs a of will and certainly evolution music that add again, I one specifics is But mature keep of you it. you that where talk fewer as for something for Spotify. This marketplaces, and really growth consumers about I more I about you one-size-fits-all then, how address The how think value also principle us but is to of for driving can love are about just creators. to delivers the moving more this tier talk principle that's something the from sort expectations, that often same, markets the to we is back into quite That market. more that set the happens music have we always this. which is SKUs create have do higher-priced of of this.

of buyers, you back go to of clues, And some all look can vinyl things that to these are the back for already value. you superfans that to can they what go exist in

things those artists. to proximity of Some are

I other Some for sound of those specifics breadcrumbs better of and course, excited bunch left a get but think I get guys into you by quality things. can't things are, I've it. of to enough

Okay.

strong proving of story Our next In out will with question was efficiency. Black XXXX the gross Benjamin What on XXXX, the unit from be? of comes the year framing. economics XXXX you're the XXXX margin performance.

the I had a cleaner wish I story, story both of profitability, of way with the positioning the much mix the Yes. but being XXXX is growth story. of

as to value my So the points strong it's for that at not can remarks, we excited seeing indicator, right building very that up technology both adding mentioned deliver us I about add now. just business. And is in inflection what sometimes key same about think, value as it's becomes growth for about time. to the opens And very are this long-term And a or available just consumers. we that really the opening we're I but proven profitability

see XXXX. those pursuing obviously, as of in And lot investments. remain we're we we company will a a so profitable opportunities those And

All right.

push your growing on be from Another brand audience disconnect revenues the the revenue Advertising question now under for from between dollars. to and Greenfield to seems has programmatic engagement slower ad than of over there the XX% advertising? shrunk your Rich alone in a advertising. of XX%. MAUs but advertising, Is We softness growing understand is and fix

Thank you.

mix, this solution, external a programmatic auction piloting as a SPOT's Let want thing there auction, single our again business, programmatic a new and first diversifying rebrand programmatic on to for build to back are better support self-serve the say I will we Ads that is us. we're Exchange. And a more more et accommodate a ad sure. other comes to the I platform, trivial that's our automated journey. But us, and supply-side Manager, view for SPOT's With cetera, also out and platform, We just do me Ad of also think into in big will big that we go programmatic, us here, be measurement, the that should things fix. is demand. and driving that remind actively formats, help become just And part

All right.

from about where weeks question most several Another Anmuth think far joining you company? Christian, And should your the about since operating focused? anything ago, Christian. has been for Doug we have How philosophy? thus you surprised

it longer. journey say to little Well, the And that something I'm a But it see And the warmth. getting a don't little bit gives I bit accomplished, always is amazing you often when that company, I that have senior any to the you see you get the and results company again. also get has surprised into is of hands-on. so

that's company. good mean, for drives also, from does work, going the spent should X, up, And partners, my quite drivers. question we business, have presented months take very have I how forward very first trying the of explicit, colleagues in a the I making company time how in we And to learn with first today everything, the discuss my to X spent be just lot what after control are and what we numbers and external how the that meeting set then things I And are done understand, And what of I management and weeks, the to there, I will this. market. sure X I'm a the in

I'm to decide scale. things close the it then should really usually So makes on work do to we a my screwdriver. that about them short and broader would talk in I to I I before say details, go hands-on. how in come I quite to with my understand That then, just me again leave to style a others style. excited. that's I'm I started. And But And really want say I where well,

Okay.

from engagement? on Reif question you provide Audiobooks. Another and update an usage Audiobooks Jessica Can Ehrlich on

see And into Yes. Jessica. this We're journey how about much happened. it's to Audiobooks. year Thank you, fascinating a very excited has

year launched titles fantastic. strong, we've we the adoption also we but more a growing the As available, thought the strong, is title, now is number than of board, we adoption comprehensive across per strong seeing ago, we user we of a about pretty And are which really nicely. library had very doubled have and

Spotify the consumption in So users. is Spotify instance, well-used X hours service. remember, seeing very audiobook more U.S., the among per And users, for than we're already a more

So more to consumption see great strong average on a pretty fact X hours is is that this can the consumers. a proposition of we testament what for

So we're very excited.

Okay.

question Greenfield Rich their We've and and need Netflix respective advertiser advertising sports on Another sports. Amazon into seen interest? Spotify businesses. from to sports accelerate Does content to push build demand

I'll take this one.

what we marketeers meeting and is the enabling where Spotify, to about in in story advertising the I the to is across to easily buy need marketplace they more do think, overall, want met. know them primary network. we And the be advertising. that programmatic in And

So bigger I that's think the story.

sports, a Now big truth particular, pretty when already it comes to role. playing is in the we're

look know something I podcasting podcasts. the doing Ringer of many us side. So and And The phenomenal The all listeners on his at of like for Ringer. Bill already to is just you are Simmons

well with about great And so very excited for we consumers with as a see driver advertisers so that and that. as we're us

Okay.

from AI. Our Deepak is next question on coming

retention? how you the all are with benefiting over on the color give et some X such and innovation product the as months, these enhancements engagement AI, can last Given metrics video, on front us cetera,

and whenever to those a another drive are people than this that of being keep small the the engagement it coming the technology adding we I but lives board. And when lots more finding churn. showcases a done years. across and they've usage ways a is up on. of down more I we're ways fourth, we've out over results. engagement our of churn. I very huge the doing with Podcasting with obviously U.K. but to ways again, And that past. incremental transformational the is great are think that reached more in improvements that But is we the even platform driving both ways ceiling, value fifth. ways. There's adding really excited one. Audiobooks about we're feel about this, can mentioned keeps up one engage we're spoke third. in is people what Video courses the so more Spotify we many that too, the AI in and up where That is story turns thinks also bringing we've Spotify Overall, new the And driving that down keep Yes. someone bringing new driving been next can their want to really unlocking the enable is soundtrack like ways AI, Spotify that

Okay.

Black Benjamin this on time from MAU. question Another

and strategy marketing to MAU additions we're now revert your seeing net levels. changed You prior

you per expect net sustainable million into this more in is in a the reversion to adds to of And the MAU If dig level how year you we back XX should growth? little a bit what million XX to past? did, pointed you've

think And but we wasn't do I so good feels because that a side. growth MAU got I forecast, happy to now. it a the the again it turned on early missing about about like of I prior us are corner grip happy believe we've days, I'm it's back and

Now is driving things. that engagement, But the We've the lots on translates side, which things it's smart, good reversed. as past bunch Then improved among them too. new we weren't that happen, different created of in small results. make as chief we been All to then relates of did you the a really reality the added stronger backdrop we've what Things do probably have improvements, mentioned, there, MAU. so is it to to the have that tweaks as of that's more well. marketing product

more bit on little have marketing. we So spent a

why important that seeing we weren't Well, didn't we that do didn't efficiency. do to because it's prior. Now I add

bunch product, Christian are about, the the them. So on ratios, improving we spend. So be? efficiency else, ratio be happy the about on we i.e., Why great And we If spoke those see will then nothing pursue on improving core wouldn't things. the with SAC-to-LTV a as engagement opportunities if of working to we're seeing team great has more marketing. will that SAC-to-LTV efficiency, been we

Okay.

is hat Rogan video on reach, scale, Next like Joe larger engagement Greenfield while over offers to and be still and you video for Rich dwarfed presume We just on, podcasting, ever want the if creators Spotify. on YouTube. from How put your platform that's you of question change it's creator YouTube podcasting. an by not that time? why Spotify Daniel, do

Well, we of companies I mean, story against been company, we're much are about and you the competition we've creators. feel too history what is if much think And do the we look of at think the the is And what the What I up platforms. needs needs honest entering bigger the of always Spotify. spaces, like as don't about this answer. of consumer, is the are

have solving so are where follow plugging where along event, creator sure needs, from And all real you. people that we in that to will philosophy video tomorrow, play, We solving hope of this. we're the you'll we're it's seeing. where consumer I'm event and you see how what an our at I'm really real all we're upcoming I really live-tweet can needs pursuing that

in to make only X is not to in player in wants that's platforms. be podcasting creator the leaning more we can it. we're multi-home. sort it's seeing They dynamic, be that that What want actually what the out to we're think and solve I much so people learned a all of winner-takes-all of that into. certainly be, what That's there's it

fulfilling, which their are Spotify have of we that new a to now yet enable needs is but on what great with more think tomorrow in There for is parts creators aren't content that that and have hopefully, they seeing that lots Spotify. content, creators add to we're direction. we them are only want to ways of step more but I

Okay.

a the question consider users support to Cahall Ad-Supported This Would next modest the in commentary environment. subscription to Our on you mature in is CPM labels, and especially Ad-Supported, fee a appears profitably your on may be scaling in markets? from it about Steven tier. soft Ad-Supported attractive

views. comment we're our we as really we really I how do specifics always may trying preannouncing open the opportunity. what And can't find creators consumers not on of want, considering we're sort and about or about before, need We're I and two. do, about thinking to mentioned evolve between to can may general always win-wins what the talk I what do but

investors specifically, you One to and not of music is music going those video, available the be because to aware of for change. not that's analogous marketplace. regulatory in lot music to are, is of environment, that's there's there something and likely things, the in radio This ad-supported challenges, good with a of, however, rights specifically out why other

think followed happening And is video dynamic about like so there compared something as very you fees with that, tiers very, say, Ad-Supported a with where to, involved, obviously music et different as industry in the we've what's cetera.

possible a needs, in So environment do we video. how always we're is it create very than always thinking consumers' best with But and the proposition. open. We're discussing with our about partners different

overlay let's very regulatory Because don't thing industry we it's I happened a in environment. just can and and different think say, different video music." do the "Hey, what same very So in very, environment

revenue you that At provided various drivers. can a revenue you comfortable your you to got XX% Jessica this? And on levers can through Ehrlich of target? reach We've you goal the question Day, Investor annual this think XXXX from Reif Are help Okay. achieve another us growth.

Yes.

will to always be want that day for focused expectations. we're high innovation that's on And iconic very these one the for of certainly and to companies few we what's here. have every next. company, defy push of very continue what more I'm and And to And my push goals we this high set very going in constantly So we board. across goals task

a probably growth? monetization. Now then it's what annual are top top user strong get strong growth, super and XX% Well, the very that, drivers of to of combination both on line

scratching buckets, the surface just in these we have really consumers of the of so potential you in we're the about reaching across more And it, all both when think world.

of So growth far, million the at more about X as left We're world around than about be to cares you think people had. music. that billion so plenty so addressable the there's only universe, there's XXX definitely

across if obviously, you tough very it decades be run of XX% we've Now people. will on, because out out stretch

So be eventually, of at, looking what depending you're sort will that growth, hard on to time accomplish. period

our side, year some value back saw I to and revenue this to the close price more very good the value-to-price gap that, on close however, us feel to eventually we We're there, ratio. monetize. will you the now too. On about gap of adding between the ability

increase And back, it have prices in too. A put a could perspective, all. whether around few question to Spotify we things was even years big at

ability I think we've that have do so. proven we to now that

ability certainly, we to and our faster to lead that help more have we makes and me that had have to forward. so price, going this SKUs than think both need the XX% to now on growth, what subscription we, But with get that profitably. stop business cannot to do growth. have to ability We of nothing the to sort and There's going is grow advertising do

you about So those are this. ingredients think as of the sort main

Okay.

of about next apps, role With Our as question talk superfan applications? could to come record potential is labels to Venkateshwar you going other from a Spotify's distribution on looking distributor Kannan opportunities. launch

always intersection is company, a open But Well, ways to to appeal, this look to to would we needs. proposition. I've we discussing as more apps at of that growth. has don't creator think be with are than consumer again, if the look now to And can contribute said we the how really great of we're few we at needs announce have that consumer our industry superfan happy improve moment. at and there the And the times, anything to goal

right. All

well growth leveraging tech next come Our and here digital road brand away diversifying other Can going on Anmuth the is peers. ad again advertising. revenue map product talk about while from is base demand-side of to ad and FX-neutral the platforms advertiser you Doug question below partners accelerate growth? X% from to ad

a the Going back little we to is about that will instead ad so and changes services what bit into and there. before, talked brand the more take us the actually move doing are then purpose Spotify performance-based with Exchange to Ad actually, of I with

keep at that. and So that's answer I'll short the it

around quantitative growth that or Marketplace there Is this there working now or you so XXXX notable All right. Maria are products be recently beyond? on a We've growth year? in new provide far introduced and color you've could got Are any question on features Ripps from can that contributors Marketplace. any

tools and campaigns teams that to when do artist's teams granularity and pleased today. in And Marketplace we're that's very more shows teams more Marketplace, the near-term Those big of and how comes are I'm and artists are control across marketing one and label of using ready, integration they more to features, it, with how are already have label seeing that things back workflows is of Yes. giving drivers. up, more more using what some board Marketplace. and the the are product that driving it of growth. those with with the their teams just they this There as sort some

think front, we've there's as share. The example, we see, music do on we longer-term What users. one referring videos a drivers to is I up see the is the simply show merchandising I'm merchandising as music when to in music still do the you have been on lot and front. what videos, releases significant on a And how adding stream to uptake product, products Marketplace

how tools So and controls more more we're on artists' Marketplace. more use giving teams just teams label and more and to to and

We've speculation cable the Spotify labels pricing to to pros pricing? question on model move royalties. subscriber to per From to a what fixed are from Reif variable music Jessica Ehrlich another cons Okay. There's networks. the perspective, got from from and like a record that similar TV been moving would

not a sure this can speculation, provide we're partners. music have to and constantly model can how with I be Yes, relationship I'm that our on will the but the very what the growth discussing for so And ecosystem. future we of that much say healthy comment

now We've features. products Okay. videos from Mahaney a music satisfaction? and Mark features been How question got and and DJ AI user on new engagement to have impactful

very that of on million few that the as move more on there size aggregate. are move that think there users, interesting something Spotify numbers cohorts. Spotify, may like the individual One things things more reality about of the are small you things the And and things is over is XXX

music retention we people have DJ higher AI videos, to is and than also DJ metrics, not love feel this videos are about videos Spotify. metrics and and qualitative is it just of pretty engagement who they think Both significantly people on they DJ Spotify, averages. And how where seeing but the strength on AI music how using that in have see amazing about say that to quantitative similar we're what results I moving Spotify. And AI up showing are too. music working, DJ, however, exceptions been ones that don't, truly AI great showcases ways.

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from disciplined, your Michael going AI Next investment you frame opportunities? question of AI for expect net You you pursue be objectives? investments on Morris additional we should objectives. but incremental help period new to Can any while is an you'll growth mentioned be longer-term

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do. I can I feel is in to this I not but back not what to this highly we calm we're think we're that be XXXX, disciplined reckless think to is say and about investors make spending going what

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work course, app work how the with and of ability stores in There's, upsells our overall. constraints to

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such How Apple on come And our currently compares right. Music? landscape. the All Crockett final Spotify's growth to Barton major do going believe rivals as is competitive from to today question you

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over our turn and for I'll Daniel Okay. concludes question-and-answer Well, some closing that floor to the session, back remarks.

All right. Thanks, Bryan.

I we from stronger my commentary, position, the a made. incredibly of what's we've an team. never been execution I'm really Spotify been outstanding the the thanks and want think way and my just delivered So And we've today conclude, would progress proud say, if we've remarks to in I by all to

user guys industry the about us valuable And to key we path and really be, incredibly commitment news to the is pursuit makes on toward innovation hope that I relentless to our steady up join obviously, for sets experience while and our on event us. in not most a strength growth the am core the excited bit think unique. where achieving the if Spotify are video I the reinforcing that little ahead here We tomorrow, out out you and set us And a of check what further, long-term deliver goals. And too. I lies will

thanks joining So us. for

website today's Okay, and under concludes app and also will call. the Thanks replay be available that on Spotify Replays. again, everyone. our A Earnings Call Investor on Spotify Relations