Spotify Q4 EPS Surpasses Estimates; Loeb Adds 100K Shares at Third Point
Third Point’s Daniel Loeb initiated a 100,000-share Spotify position in Q4 FY25, doubling down on music streaming. Spotify posted Q4 EPS of $5.16 (vs $2.95 est) on €4.53B revenue (vs €4.44B est), guided Q1 revenue of €4.50B vs €4.57B consensus and raised U.S. monthly fees to $13.
1. Third Point’s New Spotify Position
Third Point increased its Spotify position by acquiring 100,000 shares in Q4 FY25, marking the hedge fund’s first disclosed investment in the music streaming platform.
2. Q4 Financial Performance
Spotify delivered Q4 EPS of $5.16 against a $2.95 consensus on revenue of €4.53 billion, surpassing the €4.44 billion forecast, driven by strong Premium subscriber growth and advertising gains.
3. Q1 Guidance and Pricing Strategy
Management forecast Q1 revenue of €4.50 billion versus €4.57 billion consensus and raised U.S. Premium subscription pricing to $13 per month, aiming to offset escalating content costs and boost average revenue per user.
4. Unified Leadership Driving Growth
Co-CEOs Daniel Söderström and Alex Norström maintained a single decision-making structure, attributing 17% compounded revenue growth and margin expansion over two years to streamlined operations and strategic alignment.