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Spotify Technology

NYSE:SPOT
Snowflake Description

Excellent balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
SPOT
NYSE
$28B
Market Cap
  1. Home
  2. US
  3. Media
Company description

Spotify Technology S.A., together with its subsidiaries, provides music streaming services worldwide. The last earnings update was 77 days ago. More info.


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SPOT Share Price and Events
7 Day Returns
5.6%
NYSE:SPOT
0.3%
US Entertainment
0.6%
US Market
1 Year Returns
-17.3%
NYSE:SPOT
3.5%
US Entertainment
4.7%
US Market
SPOT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Spotify Technology (SPOT) 5.6% 5.3% 9.2% -17.3% - -
US Entertainment 0.3% 4.1% 4.7% 3.5% 68.3% 92.4%
US Market 0.6% 4.2% 2.7% 4.7% 38% 43.5%
1 Year Return vs Industry and Market
  • SPOT underperformed the Entertainment industry which returned 3.5% over the past year.
  • SPOT underperformed the Market in United States of America which returned 4.7% over the past year.
Price Volatility
Industry
5yr Volatility vs Market
Related Companies

SPOT 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.

NYSE:SPOT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 27 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 NYSE:SPOT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Entertainment Unlevered Beta Simply Wall St/ S&P Global 0.91
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.915 (1 + (1- 26.01%) (2.4%))
0.954
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.95
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.954 * 5.96%)
8.41%

Discounted Cash Flow Calculation for NYSE:SPOT 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.

NYSE:SPOT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (EUR, Millions) Source Present Value
Discounted (@ 8.41%)
2020 372.42 Analyst x12 343.51
2021 456.78 Analyst x9 388.62
2022 747.31 Analyst x8 586.46
2023 1,376.33 Analyst x3 996.25
2024 1,818.87 Est @ 32.15% 1,214.40
2025 2,243.15 Est @ 23.33% 1,381.43
2026 2,627.79 Est @ 17.15% 1,492.70
2027 2,964.73 Est @ 12.82% 1,553.38
2028 3,255.11 Est @ 9.79% 1,573.15
2029 3,504.95 Est @ 7.68% 1,562.42
Present value of next 10 years cash flows €11,092.32
NYSE:SPOT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €3,504.95 × (1 + 2.73%) ÷ (8.41% – 2.73%)
€63,338.49
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €63,338.49 ÷ (1 + 8.41%)10
€28,234.77
NYSE:SPOT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €11,092.32 + €28,234.77
€39,327.09
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €39,327.09 / 180.67
€217.68
NYSE:SPOT Discount to Share Price
Calculation Result
Exchange Rate EUR/USD
(Reporting currency to currency of NYSE:SPOT)
1.126
Value per Share
(USD)
= Value per Share in EUR x Exchange Rate (EUR/USD)
= €217.68 x 1.126
$245.05
Value per share (USD) From above. $245.05
Current discount Discount to share price of $152.30
= -1 x ($152.30 - $245.05) / $245.05
37.8%

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
38%
Share price is $152.3 vs Future cash flow value of $245.05
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
NYSE:SPOT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in EUR €-0.28
NYSE:SPOT Share Price ** NYSE (2019-07-12) in USD $152.3
NYSE:SPOT Share Price converted to EUR reporting currency Exchange rate (USD/ EUR) 0.888 €135.29
United States of America Entertainment Industry PE Ratio Median Figure of 24 Publicly-Listed Entertainment Companies 30.9x
United States of America Market PE Ratio Median Figure of 3,084 Publicly-Listed Companies 18.01x

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

** Primary Listing of Spotify Technology.

NYSE:SPOT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 135.29 ÷ -0.28

-478.45x

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 US Entertainment industry average.
  • Spotify Technology is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Spotify Technology's expected growth come at a high price?
Raw Data
NYSE:SPOT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -478.45x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts
77.7%per year
United States of America Entertainment Industry PEG Ratio Median Figure of 18 Publicly-Listed Entertainment Companies 2.34x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.59x

*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
NYSE:SPOT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in EUR €13.63
NYSE:SPOT Share Price * NYSE (2019-07-12) in USD $152.3
NYSE:SPOT Share Price converted to EUR reporting currency Exchange rate (USD/ EUR) 0.888 €135.29
United States of America Entertainment Industry PB Ratio Median Figure of 63 Publicly-Listed Entertainment Companies 3.36x
United States of America Market PB Ratio Median Figure of 5,239 Publicly-Listed Companies 1.81x
NYSE:SPOT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 135.29 ÷ 13.63

9.93x

* 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 US 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.

SPOT Future Performance

 How is Spotify Technology expected to perform in the next 1 to 3 years based on estimates from 27 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
77.7%
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 2.7%.
Growth vs Market Checks
  • Spotify Technology's earnings growth is expected to exceed the United States of America market average.
  • Spotify Technology's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:SPOT Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:SPOT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 27 Analysts 77.7%
NYSE:SPOT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 27 Analysts 18.8%
United States of America Entertainment Industry Earnings Growth Rate Market Cap Weighted Average 17%
United States of America Entertainment Industry Revenue Growth Rate Market Cap Weighted Average 11.6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.5%

*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
NYSE:SPOT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 27 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:SPOT Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 13,928 1,156 943 7
2022-12-31 11,977 990 409 11
2021-12-31 10,323 761 48 19
2020-12-31 8,353 530 -101 26
2019-12-31 6,731 474 -288 27
NYSE:SPOT Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-03-31 5,631 469 -51
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 18.8% 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
NYSE:SPOT 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 27 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.

NYSE:SPOT Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 5.16 8.01 2.91 3.00
2022-12-31 2.17 3.53 0.87 5.00
2021-12-31 0.25 1.27 -0.74 14.00
2020-12-31 -0.60 0.30 -1.30 21.00
2019-12-31 -1.58 -1.01 -2.61 21.00
NYSE:SPOT Past Financials Data
Date (Data in EUR Millions) EPS *
2019-03-31 -0.28
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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.

SPOT 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 their year on year earnings growth rate was negative over the past 5 years.
  • 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 US 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.

NYSE:SPOT Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 5,631.00 -51.00 959.00 533.00
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 US 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.

SPOT 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's short term (1 year) commitments are greater than 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.

NYSE:SPOT Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 2,462.00 0.00 1,474.00
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 1,106.00 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 -54.7% 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 5/6, 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.

SPOT 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
NYSE:SPOT 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 27 Analyst Estimates (S&P Global) See Below
United States of America Entertainment Industry Average Dividend Yield Market Cap Weighted Average of 11 Stocks 1.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2018 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America 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.

NYSE:SPOT 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 United States of America.
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.

SPOT 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 36
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, both up more than 20%.
  • Daniel's remuneration is lower than average for companies of similar size in United States of America.
Management Team

Daniel Ek

TITLE
Co-Founder
COMPENSATION
€2K
AGE
36

Martin Lorentzon Sven

TITLE
Co-Founder & Director
COMPENSATION
€300K
AGE
50
TENURE
13.5 yrs

Barry McCarthy

TITLE
Chief Financial Officer
COMPENSATION
€6M
AGE
65

Alex Norström

TITLE
Chief Premium Business Officer
COMPENSATION
€5M
AGE
42

Gustav Söderström

TITLE
Chief Research & Development Officer
COMPENSATION
€5M
AGE
42

Dawn Ostroff

TITLE
Chief Content Officer
COMPENSATION
€8M
AGE
58
TENURE
1.1 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
51

Cecilia Qvist

TITLE
Global Head of Markets
AGE
47
Board of Directors Tenure

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

2.1
Average Tenure
50
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
36

Martin Lorentzon Sven

TITLE
Co-Founder & Director
COMPENSATION
€300K
AGE
50
TENURE
11 yrs

Woody Marshall

TITLE
Director
COMPENSATION
€300K
AGE
50
TENURE
4.1 yrs

Tom Staggs

TITLE
Director
COMPENSATION
€320K
AGE
58
TENURE
2.1 yrs

Shishir Mehrotra

TITLE
Director
COMPENSATION
€300K
AGE
40
TENURE
2.1 yrs

Heidi O'Neill

TITLE
Director
COMPENSATION
€300K
AGE
53
TENURE
1.6 yrs

Ted Sarandos

TITLE
Director
COMPENSATION
€300K
AGE
54
TENURE
2.8 yrs

Cristina Stenbeck

TITLE
Director
COMPENSATION
€300K
AGE
42
TENURE
2.1 yrs

Padmasree Warrior

TITLE
Director
COMPENSATION
€300K
AGE
58
TENURE
2.1 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual 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.

SPOT News

Simply Wall St News

Why Spotify Technology SA's (NYSE:SPOT) Ownership Structure Is Important

In this article, I'm going to take a look at Spotify Technology SA’s (NYSE:SPOT) latest ownership structure, a non-fundamental factor which is important, but remains a less discussed subject among investors. … The implications of these institutions’ actions can either benefit or hinder individual investors, so it is important to understand the ownership composition of your stock investment. … Therefore, it is beneficial for us to examine SPOT's ownership structure in more detail.

Simply Wall St -

Spotify Technology SA (NYSE:SPOT): Is Breakeven Near?

Spotify Technology SA's (NYSE:SPOT):. … Spotify Technology S.A., together with its subsidiaries, provides music streaming services worldwide. … With the latest financial year loss of -US$1.23b and a trailing-twelve month of -US$1.23b, the US$30.27b market-cap alleviates its loss by moving closer towards its target of breakeven.

Simply Wall St -

Tech Industry Trends And Its Impact On Spotify Technology SA. (NYSE:SPOT)

Tech analysts are forecasting for the entire software tech industry, a positive double-digit growth of 14.52% in the upcoming year , and a massive growth of 78.66% over the next couple of years. … Spotify Technology lags the pack with its negative growth rate of -66.23% over the past year, which indicates the company will be growing at a slower pace than its software peers. … If Spotify Technology has been on your watchlist for a while, now may be the time to enter into the stock, if you like its growth prospects and are not highly concentrated in the tech industry.

Simply Wall St -

Loss-Making Spotify Technology SA. (NYSE:SPOT) Expected To Breakeven

Many investors are wondering the rate at which SPOT will turn a profit, with the big question being “when will the company breakeven?” In this article, I will touch on the expectations for SPOT’s growth and when analysts expect the company to become profitable. … NYSE:SPOT Past Future Earnings May 25th 18 Underlying developments driving SPOT’s growth isn’t the focus of this broad overview, however, bear in mind that typically a high forecast growth rate is not unusual for a company that is currently undergoing an investment period. … For a more comprehensive look at SPOT, take a look at SPOT’s company page on Simply Wall St.

Simply Wall St -

Spotify Technology SA.'s (NYSE:SPOT) Earnings Dropped -73.23%, Did Its Industry Show Weakness Too?

Assessing Spotify Technology SA.'s (NYSE:SPOT) past track record of performance is a useful exercise for investors. … For the purpose of this commentary, I like to use the ‘latest twelve-month’ data, which either annualizes the most recent 6-month earnings update, or in some cases, the most recent annual report is already the latest available financial data. … NYSE:SPOT Income Statement May 12th 18 We can further analyze Spotify Technology's loss by looking at what the industry has been experiencing over the past few years.

Simply Wall St -

What Investors Should Know About Spotify Technology SA.'s (NYSE:SPOT) Financial Strength

View our latest analysis for Spotify Technology Does SPOT produce enough cash relative to debt? … With this debt repayment, SPOT currently has €1.51B remaining in cash and short-term investments for investing into the business. … On top of this, SPOT has generated cash from operations of €179.00M over the same time period, leading to an operating cash to total debt ratio of 18.94%, indicating that SPOT’s operating cash is not sufficient to cover its debt.

Simply Wall St -

SPOT 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.
SPOT
Exchange: NYSE
Founded: 2006
$27,515,722,997
180,667,912
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: 2019/07/15 00:55
End of day share price update: 2019/07/12 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/04/29
Last earnings reported: 2019/03/31
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.