=Spotify (SPOT) reported earnings on Wed 2 May 2018 (a/h)

Spotify reports Q2 results, reports revs in-line with prior guidance; guides Q2 revs in-line; reaffirms FY18 revenue guidance 

• Reports Q1 (Mar) loss of 1.01 per share. The Capital IQ Consensus of (0.29). Revenues fell 0.9% year/year to 1.14 bln vs the 1.14 bln Capital IQ Consensus. This is inline with its guidance of EUR1.10-1.15 bln.
• Gross Margin was 24.9%, above the high end of its guidance range of 23-24%. Excluding adjustments to prior period estimates primarily related to changes in rights holder liabilities booked in the quarter, it would have finished at the high end of our stated range. These adjustments accounted for approximately 124 basis points of Gross Margin in Q1.
• SPOT finished the quarter with 170 million Monthly Active Users (MAU) and 75 million Premium Subscribers, up 30% and 45%, respectively, y/y.
• Co issues in-line guidance for Q2, sees Q2 revs of 1.1-1.3 vs. 1.29 bln Capital IQ Consensus Estimate. Expects MAUs of 175-180 mln, up 28-32% y/y; gross margin of 24-26%; and operating loss of EUR60-140 mln
• Co issues reaffirms revenue guidance for FY18, sees FY18 revs of 4.9-5.3 vs. 5.2 bln Capital IQ Consensus Estimate. Expects MAU of 198-208 mln; gross margin of 23-25%; operating loss of EUR 230-330 mln.