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Spotify Technology

DB:639
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
639
DB
$25B
Market Cap
  1. Home
  2. DE
  3. Media
Company description

Spotify Technology S.A., together with its subsidiaries, provides music streaming services worldwide. The last earnings update was 70 days ago. More info.


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639 Share Price and Events
7 Day Returns
1.2%
DB:639
0.8%
DE Entertainment
1.5%
DE Market
1 Year Returns
-2.3%
DB:639
10.2%
DE Entertainment
-6.2%
DE Market
639 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Spotify Technology (639) 1.2% -2.4% 6.5% -2.3% - -
DE Entertainment 0.8% 6.3% 12.5% 10.2% 35.2% 74.6%
DE Market 1.5% 6% 8.5% -6.2% 10.7% 15.3%
1 Year Return vs Industry and Market
  • 639 underperformed the Entertainment industry which returned 10.2% over the past year.
  • 639 outperformed the Market in Germany which returned -6.2% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

639 Value

 Is Spotify Technology undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Spotify Technology to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Spotify Technology.

DB:639 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 28 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:639
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Entertainment Unlevered Beta Simply Wall St/ S&P Global 0.96
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.962 (1 + (1- 26.01%) (0%))
0.975
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.97
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.975 * 5.96%)
6.04%

Discounted Cash Flow Calculation for DB:639 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Spotify Technology is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:639 DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 6.04%)
2019 231.94 Analyst x13 218.73
2020 393.06 Analyst x14 349.58
2021 559.10 Analyst x12 468.94
2022 890.79 Analyst x9 704.60
2023 1,360.50 Analyst x4 1,014.87
2024 1,746.26 Est @ 28.35% 1,228.46
2025 2,094.05 Est @ 19.92% 1,389.25
2026 2,387.42 Est @ 14.01% 1,493.71
2027 2,623.18 Est @ 9.88% 1,547.78
2028 2,806.31 Est @ 6.98% 1,561.56
Present value of next 10 years cash flows €9,977.48
DB:639 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= €2,806.31 × (1 + 0.23%) ÷ (6.04% – 0.23%)
€48,419.06
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €48,419.06 ÷ (1 + 6.04%)10
€26,942.52
DB:639 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €9,977.48 + €26,942.52
€36,920.00
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €36,920.00 / 180.68
€229.64
DB:639 Discount to Share Price
Calculation Result
Exchange Rate EUR/USD
(Reporting currency to currency of NYSE:SPOT)
1.121
Value per Share
(USD)
= Value per Share in EUR x Exchange Rate (EUR/USD)
= €204.34 x 1.121
$228.98
Non-primary Listing Adjustment Factor 1 share in DB:639 represents 0.88983x of NYSE:SPOT
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88983x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 228.98 x 0.88983
€203.76
Value per share (EUR) From above. €203.76
Current discount Discount to share price of €123.50
= -1 x (€123.50 - €203.76) / €203.76
39.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Spotify Technology is available for.
Intrinsic value
39%
Share price is €123.5 vs Future cash flow value of €203.76
Current Discount Checks
For Spotify Technology to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Spotify Technology's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Spotify Technology's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Spotify Technology's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Spotify Technology's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:639 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in EUR €-0.44
NYSE:SPOT Share Price ** NYSE (2019-04-23) in USD $138.79
NYSE:SPOT Share Price converted to EUR reporting currency Exchange rate (USD/ EUR) 0.892 €123.86
Germany Entertainment Industry PE Ratio Median Figure of 10 Publicly-Listed Entertainment Companies 19.82x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 19.6x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Spotify Technology.

DB:639 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:SPOT Share Price ÷ EPS (both in EUR)

= 123.86 ÷ -0.44

-281.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Spotify Technology is loss making, we can't compare its value to the DE Entertainment industry average.
  • Spotify Technology is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Spotify Technology's expected growth come at a high price?
Raw Data
DB:639 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -281.3x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 28 Analysts
48.2%per year
Europe Entertainment Industry PEG Ratio Median Figure of 30 Publicly-Listed Entertainment Companies 1.67x
Germany Market PEG Ratio Median Figure of 269 Publicly-Listed Companies 1.56x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Spotify Technology, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Spotify Technology's assets?
Raw Data
DB:639 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in EUR €11.58
NYSE:SPOT Share Price * NYSE (2019-04-23) in USD $138.79
NYSE:SPOT Share Price converted to EUR reporting currency Exchange rate (USD/ EUR) 0.892 €123.86
Germany Entertainment Industry PB Ratio Median Figure of 14 Publicly-Listed Entertainment Companies 1.56x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.84x
DB:639 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:SPOT Share Price ÷ Book Value per Share (both in EUR)

= 123.86 ÷ 11.58

10.7x

* Primary Listing of Spotify Technology.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Spotify Technology is overvalued based on assets compared to the DE Entertainment industry average.
X
Value checks
We assess Spotify Technology's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Entertainment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Entertainment industry average (and greater than 0)? (1 check)
  5. Spotify Technology has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

639 Future Performance

 How is Spotify Technology expected to perform in the next 1 to 3 years based on estimates from 28 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
48.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Spotify Technology expected to grow at an attractive rate?
  • Spotify Technology's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Spotify Technology's earnings growth is expected to exceed the Germany market average.
  • Spotify Technology's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:639 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:639 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 28 Analysts 48.2%
DB:639 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 28 Analysts 17.8%
Germany Entertainment Industry Earnings Growth Rate Market Cap Weighted Average 23%
Germany Entertainment Industry Revenue Growth Rate Market Cap Weighted Average 3.5%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.6%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:639 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 28 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:639 Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 13,549 1,222 861 10
2022-12-31 11,763 1,006 402 13
2021-12-31 9,984 773 94 20
2020-12-31 8,271 555 -117 27
2019-12-31 6,664 381 -237 28
DB:639 Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2018-12-31 5,259 344 -78
2018-09-30 4,913 289 -1,116
2018-06-30 4,593 128 -1,437
2018-03-31 4,327 170 -1,231
2017-12-31 4,090 179 -1,235
2016-12-31 2,952 101 -539

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Spotify Technology's earnings are expected to grow significantly at over 20% yearly.
  • Spotify Technology's revenue is expected to grow by 17.8% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:639 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 28 Analyst Estimates (S&P Global) See Below

All data from Spotify Technology Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:639 Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 3.83 7.11 1.33 6.00
2022-12-31 2.01 3.50 0.56 10.00
2021-12-31 0.32 1.76 -0.65 16.00
2020-12-31 -0.60 1.45 -3.63 25.00
2019-12-31 -1.31 -0.31 -4.15 25.00
DB:639 Past Financials Data
Date (Data in EUR Millions) EPS *
2018-12-31 -0.44
2018-09-30 -6.55
2018-06-30 -8.81
2018-03-31 -7.89
2017-12-31 -8.14
2016-12-31 -3.63

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Spotify Technology will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Spotify Technology's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Spotify Technology has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

639 Past Performance

  How has Spotify Technology performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Spotify Technology's growth in the last year to its industry (Entertainment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Spotify Technology does not make a profit and there is insufficient past data to establish if their 5 year on year earnings growth rate was positive.
  • Unable to compare Spotify Technology's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Spotify Technology's 1-year growth to the DE Entertainment industry average as it is not currently profitable.
Earnings and Revenue History
Spotify Technology's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Spotify Technology Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:639 Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 5,259.00 -78.00 903.00 493.00
2018-09-30 4,913.00 -1,116.00 944.00 516.00
2018-06-30 4,593.00 -1,437.00 936.00 479.00
2018-03-31 4,327.00 -1,231.00 876.00 431.00
2017-12-31 4,090.00 -1,235.00 831.00 396.00
2016-12-31 2,952.00 -539.00 543.00 207.00
2016-01-01 1,940.00 -230.00 325.00 136.00

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Spotify Technology has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Spotify Technology has efficiently used its assets last year compared to the DE Entertainment industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Spotify Technology improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Spotify Technology's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Entertainment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Spotify Technology has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

639 Health

 How is Spotify Technology's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Spotify Technology's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Spotify Technology is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Spotify Technology's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Spotify Technology's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Spotify Technology has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Spotify Technology Company Filings, last reported 3 months ago.

DB:639 Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,094.00 0.00 1,462.00
2018-09-30 1,594.00 0.00 1,676.00
2018-06-30 999.00 0.00 1,414.00
2018-03-31 161.00 1,022.00 1,304.00
2017-12-31 238.00 944.00 1,058.00
2016-12-31 -240.00 1,112.00 1,395.00
2016-01-01 229.00 0.00 597.00
  • Spotify Technology has no debt.
  • Spotify Technology currently has no debt however we can't compare to 5 years ago as we have no data for that period.
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Spotify Technology has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Spotify Technology has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -65.9% per year.
X
Financial health checks
We assess Spotify Technology's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Spotify Technology has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

639 Dividends

 What is Spotify Technology's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Spotify Technology dividends. Estimated to be 0% next year.
If you bought €2,000 of Spotify Technology shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Spotify Technology's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Spotify Technology's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:639 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 28 Analyst Estimates (S&P Global) See Below
Germany Entertainment Industry Average Dividend Yield Market Cap Weighted Average of 5 Stocks 1.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 327 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:639 Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 4.00
2020-12-31 0.00 4.00
2019-12-31 0.00 5.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Spotify Technology has not reported any payouts.
  • Unable to verify if Spotify Technology's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Spotify Technology's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Spotify Technology has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Spotify Technology's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Spotify Technology's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Spotify Technology afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Spotify Technology has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

639 Management

 What is the CEO of Spotify Technology's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Daniel Ek
COMPENSATION €2,220
AGE 35
CEO Bio

Mr. Daniel Ek founded Spotify Limited in 2006 and serves as its Chief Executive Officer. Mr. Ek is Co-founder, Chief Executive Officer and Chairman of Spotify Technology S.A. Mr. Ek is responsible for guiding the vision and strategy of Spotify Technology S.A. and leading the management team. He has been a Director of Spotify Technology S.A. since July 21, 2008. Mr. Ek is a serial entrepreneur and technologist who started his first company in 1997 at the age of 14, co-founded Spotify in 2006 together with Martin Lorentzon. His role is to guide the vision and strategy of Spotify as it grows. Leading the management team, he is also responsible for nurturing a passionate working environment for everyone at Spotify Limited. Prior to Spotify Limited, he founded Advertigo, the online advertising company acquired by TradeDoubler, having previously held senior roles at Nordic auction company Tradera (acquired by Ebay). He also served as Chief Technology Officer at Stardoll, the fashion & entertainment community for tweens.

CEO Compensation
  • Daniel's compensation has been consistent with company performance over the past year.
  • Daniel's remuneration is lower than average for companies of similar size in Germany.
Management Team

Daniel Ek

TITLE
Co-Founder
COMPENSATION
€2K
AGE
35

Martin Lorentzon Sven

TITLE
Co-Founder & Director
COMPENSATION
€300K
AGE
49
TENURE
13.3 yrs

Barry McCarthy

TITLE
Chief Financial Officer
COMPENSATION
€6M
AGE
64

Alex Norström

TITLE
Chief Premium Business Officer
COMPENSATION
€5M
AGE
41

Gustav Söderström

TITLE
Chief Research & Development Officer
COMPENSATION
€5M
AGE
41

Dawn Ostroff

TITLE
Chief Content Officer
COMPENSATION
€8M
AGE
57
TENURE
0.8 yrs

Paul Vogel

TITLE
VP, Head of Finance/FP&A and Investor Relations

Horacio Gutierrez

TITLE
General Counsel

Katarina Berg

TITLE
Chief Human Resources Officer
AGE
50

Cecilia Qvist

TITLE
Global Head of Markets
AGE
46
Board of Directors Tenure

Average tenure and age of the Spotify Technology board of directors in years:

1.8
Average Tenure
49
Average Age
  • The average tenure for the Spotify Technology board of directors is less than 3 years, this suggests a new board.
Board of Directors

Daniel Ek

TITLE
Co-Founder
COMPENSATION
€2K
AGE
35

Martin Lorentzon Sven

TITLE
Co-Founder & Director
COMPENSATION
€300K
AGE
49
TENURE
10.8 yrs

Woody Marshall

TITLE
Director
COMPENSATION
€300K
AGE
49
TENURE
3.8 yrs

Tom Staggs

TITLE
Director
COMPENSATION
€320K
AGE
57
TENURE
1.8 yrs

Shishir Mehrotra

TITLE
Director
COMPENSATION
€300K
AGE
39
TENURE
1.8 yrs

Heidi O'Neill

TITLE
Director
COMPENSATION
€300K
AGE
52
TENURE
1.3 yrs

Ted Sarandos

TITLE
Director
COMPENSATION
€300K
AGE
53
TENURE
2.6 yrs

Cristina Stenbeck

TITLE
Director
COMPENSATION
€300K
AGE
41
TENURE
1.8 yrs

Padmasree Warrior

TITLE
Director
COMPENSATION
€300K
AGE
57
TENURE
1.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Spotify Technology's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Spotify Technology has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

639 News

Simply Wall St News

What You Must Know About Spotify Technology SA.'s (FRA:639) Financial Strength

Check out our latest analysis for Spotify Technology How does 639’s operating cash flow stack up against its debt? … On top of this, 639 has produced cash from operations of €179.00M in the last twelve months, leading to an operating cash to total debt ratio of 18.94%, signalling that 639’s operating cash is not sufficient to cover its debt. … Next Steps: 639’s debt and cash flow levels indicate room for improvement.

Simply Wall St -

639 Company Info

Description

Spotify Technology S.A., together with its subsidiaries, provides music streaming services worldwide. It operates through two segments, Premium and Ad-Supported. The Premium segment offers commercial-free music services to subscribers comprising unlimited online and offline high-quality streaming access to its catalog. The Ad-Supported segment provides ad-supported users with limited on-demand online access to its catalog. As of December 31, 2018, the company’s platform included 207 million monthly active users and 96 million premium subscribers in approximately 78 countries and territories. Spotify Technology S.A. was founded in 2006 and is based in Luxembourg City, Luxembourg.

Details
Name: Spotify Technology S.A.
639
Exchange: DB
Founded: 2006
$22,377,765,897
180,675,385
Website: http://www.spotify.com
Address: Spotify Technology S.A.
42-44, avenue de la Gare,
Luxembourg City,
1610,
Luxembourg
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE SPOT Common Shares New York Stock Exchange US USD 03. Apr 2018
DB 639 Common Shares Deutsche Boerse AG DE EUR 03. Apr 2018
XTRA 639 Common Shares XETRA Trading Platform DE EUR 03. Apr 2018
LSE 0SPT Common Shares London Stock Exchange GB EUR 03. Apr 2018
SWX SPF Common Shares SIX Swiss Exchange CH CHF 03. Apr 2018
BMV SPOT N Common Shares Bolsa Mexicana de Valores MX MXN 03. Apr 2018
Number of employees
Current staff
Staff numbers
3,651
Spotify Technology employees.
Industry
Movies and Entertainment
Media
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/23 22:36
End of day share price update: 2019/04/23 00:00
Last estimates confirmation: 2019/04/23
Last earnings filing: 2019/02/12
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.