‘Fasten your seat belts,’ as Spotify sets Q3 earnings report

Spotify will report Q3 earnings before the market opens Tuesday, and a top analyst is expecting increased volatility following what they expect will be a mixed report.

Although Spotify’s revenue is projected to grow 16% last quarter, it remains an unprofitable company and is expected to report a loss of 20 cents per share tomorrow on revenue of $3.5 billion.

“Recent earnings revisions and the company’s poor track record of beating earnings estimates do not paint a pretty picture of SPOT’s short-term market performance,” writes SeekingAlpha analyst Dilantha De Silva. “Key developments to watch in the upcoming earnings release include a discussion on the competitive landscape, ad revenue growth, and the monetization of Spotify’s podcast business.”

“Spotify has a poor track record of beating earnings estimates, revisions have been strongly negative in the last three months, and the company is undergoing a transformation to focus on new streams of revenue,” continued De Silva. All these, in my opinion, are ingredients for heightened volatility following the upcoming earnings report.

Tomorrow’s Spotify Q3 Report

Hypebot will have full coverage as Spotify Technology S.A. (NYSE: SPOT) posts its third-quarter 2023 financial results on Tuesday, October 24, 2023, before the market opens.

The company will hold a question and answer session to discuss third quarter 2023 financial results at 8:00 a.m. Eastern Time. Management will answer questions submitted via Slido.

Questions may be submitted on the day of the call at www.slido.com using the event code #SpotifyEarningsQ323. A live webcast of the earnings call will be accessible at investors.spotify.com and a recording of the webcast will be available following the session.

Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.