And ad-supported subscribers, the company guided that for the fourth- first quarter, they expect subscribers to come in at 500 million, beating estimates on the Street of about 492 million. I also think investors are happy to see those subscriber numbers continue to tick higher a beat on monthly active users, a beat on premium. And this driving efficiency is paramount for this company at this point. He even said, you know, I know investors, they probably don't believe me, but I am very, very staunch. And Spotify said that that's due to both speed and efficiency. We did see layoffs at the company last week along with a restructuring of its organization. And that in 2023, there's gonna be significant pullback when it comes to some of that spending. Daniel Ek admitting on the earnings call that he got, quote, 'carried away' with the investments in 2022. And honestly, I think investors are just very happy with the fact that Spotify's growth at all strategy, that seems to be no longer. Spotify shares are down nearly 70% this year.ALEXANDRA CANAL: They have been struggling. 'I would not say that is moot, but it does not make it into the top 5 of Spotify's problems, borderline top 10,' Freeman said, referencing the platform's lack of profitability and issues surrounding its software business. 'If I were them, I'd play the David versus Goliath card.'įrom a business standpoint, however, it's unlikely any App Store fight would move the needle too much in the near-term - even if Spotify were to be successful.

'Spotify might have a point of leverage that they could take advantage of,' Freeman said. The analyst noted European regulators are already engaged in an antitrust investigation against the company as Congress considers new laws to limit Apple's App Store power. Otherwise, people are going to scream bloody murder.' John Freeman, analyst at CFRA, said Apple is 'playing a dangerous game,' adding the tech giant 'better have a really good reason to reject the app. Spotify, which provides free on-demand music or ad-free tunes for paying customers, said it will now also provide video content and podcasts. Spotify CEO Daniel Ek speaks during a press event in New York May 20, 2015.

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