Spotify Technology SA (SPOT) Q3 2022 Earnings Call Transcript

For the period ending September 30, 2022

October 25, 2022 4:30 p.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

My name is Regina, and I will be your conference operator today. At this time, I would like to welcome everyone to the Spotify Third Quarter 2022 Earnings Call.

I would now like to turn the conference over to Bryan Goldberg. Please go ahead.

Bryan Goldberg

Thanks, operator, and welcome to Spotify's Third Quarter 2022 Earnings Conference Call. Joining us today will be Daniel Ek, our CEO; and Paul Vogel, our CFO. We'll start with opening comments from Daniel and Paul and afterwards, we'll be happy to answer your questions. Questions can be submitted by going to slido.com, S-L-I-D-O.com and using the code #SpotifyEarningsQ322. Analysts can ask questions directly into Slido, and all participants can then vote on the questions they find the most relevant. [Operator Instructions]. If for some reason you don't have access to Slido, you can e-mail Investor Relations at ir@spotify.com, and we'll add in your question.

Before we begin, let me quickly cover the safe harbor. During this call, we'll be making certain forward-looking statements, including projections or estimates about the future performance of the company. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could materially differ because of factors discussed on today's call, in our letter to shareholders and in filings with the Securities and Exchange Commission.

During this call, we'll also refer to certain non-IFRS financial measures. Reconciliations between our IFRS and non-IFRS financial measures can be found in our letter to shareholders, in the financial section of our Investor Relations website and also furnished today on Form 6-K.

And with that, let's turn it over to Daniel.

Daniel Ek

All right. Hey, everyone, and thank you for joining us. I hope you had the time to review our results. And as you can see, it was another solid quarter. User growth and subscriber growth keeps humming along very steadily. I've said it before, but it can't be understated: top line growth in the platform is the leading indicator for future success on all other financial metrics.

But I want to start by addressing the macro environment, which I know is top of mind for all of you. There's a lot of global uncertainty. But for Spotify, our business continues to perform very nicely around the world. And outside ads, we aren't seeing much impact at all. And the ads business is still growing and will be important, but it remains a relatively small portion of our overall revenue to date.