Spotify

Sweet Sounds of Success at Spotify

• Delightful Revenue: $4.05 billion, up 16% from the previous year.
• Operating Magic: $953 million, down 15.2% from the previous year.
• Harmonious Net loss: $76.25 million, down 74% from the previous year.
• Earnings Symphony: -0.36, up 74.3% from the previous year.

Spotify Technology, symbolized by SPOT, surpassed expectations by serenading in 10 million new active users to its platform in Q4, well above the projected 1 million. This crescendo of user growth, totaling 31 million new users in 2023, echoed loudly in the market.

In a harmony-seeking move towards profitability, Spotify orchestrated a reduction of about 17% of its workforce alongside a well-timed price increase, the first in a decade.

Despite lingering in a minor key with a net loss and a gentle miss on earnings, the composition of increased users and decreased costs struck a chord with investors. The stock soared nearly 4% upon the release of the numbers last month and has since risen over 15% in total.

Sonos’ Resilience in a Challenging Verse

• Melodic Revenue: $612.87 million, down 8.8% from the previous year.
• Operating Tune: $202.42 million, up 1.84% from the previous year.
• Profitable Harmony: $80.95 million, up 7.66% from the previous year.
• Earnings Melody: $0.84, up 6.33% from the previous year.

Sonos Inc, represented by ticker SONO, navigates a challenging market of consumer electronics that has been shrinking post-pandemic. Despite this dissonance and competition from tech heavyweights like Amazon.com Inc and Apple Inc, Sonos is carving out its share in the market.

Despite a drop in sales, Sonos hit the high notes of its guidance, bolstering its bottom line and earnings per share. The company attributes this success to lower component costs, an improved product mix, and reduced urgency in part procurement.

The stock reveled in a 12% rise upon the release of the numbers and has since crescendoed with a 14.2% increase in total.

Investor’s Overture: The MUSQ Global Music Industry ETF

Embarking on an investment journey with companies such as Spotify and Sonos, as well as the broader music industry, can strike a harmonious chord within a diversified portfolio. For those seeking to dance to the rhythm of experts, ETFs can be a compelling option.

The MUSQ Global Music Industry ETF MUSQ is a thematic ETF that offers a symphony of exposure to the entire music landscape, encompassing streaming, content and distribution, live music events and ticketing, satellite and broadcast radio, equipment and technology, and the enchantment of artificial intelligence.

The fund orchestrates a well-balanced ensemble including Spotify (3.51%), Sonos (2.51%), Amazon (7.95%), Apple (6.32%), and numerous other instrumental players.

​​Photo by Namroud Gorguis on Unsplash.