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Dec 3 2019
Summary
- Music-streaming giant Spotify surprised analysts with higher-than-expected user growth, revenue and earnings for Q3 2019.
- On the earnings call, Spotify pointed to the early success of its podcast business (now the 2nd-largest podcasting platform) as a key factor in driving higher engagement and conversion to paid subscriptions, describing the metrics as “almost too good to be true.”
- Spotify’s vision is to become the world’s #1 audio platform, beyond just music.
- It is well-positioned to ride the upward trajectory in podcasting, as it assembles a strategic flywheel reminiscent of Amazon’s.
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