Spotify’s Upcoming Q3 Results Preview
<p>Deutsche Bank analysts provided their outlook on <a href='https://financialmodelingprep.com/financial-summary/SPOT'>Spotify Technology S.A. (NYSE:SPOT)</a> ahead of the company’s Q3 earning announcement, lowering their price target to $105 from $115 and maintaining their hold rating. </p>
<p>The analysts expect the main focus to center on trends in advertising, podcasts, and gross margin dynamics. The analysts believe that for the Q3, we could see constrained ad-supported gross margin given continued investments in podcast content and limited advertising revenue upside given the tightening of budgets amidst the worsening macro environment. </p>
<p>According to the analysts, these dynamics likely have continued into the Q4, and thus could put pressure on the Q4 ad-supported revenue guide, likely limiting gross margin upside guidance beyond the current consensus of 25.2%. </p>
<p>Looking to fiscal 2023, the analysts believe gross margin trends could modestly inflect positively as podcasting revenue ramps (assuming podcast gross margin turns positive in Q4/23) and as the Lyrics investment is lapped.</p>

NYSE:SPOT