Spotify Files 2024 Annual Report

Ticker: SPOT · Form: 20-F · Filed: 2025-02-05T00:00:00.000Z

Sentiment: neutral

Topics: annual-report, financials, sec-filing

TL;DR

Spotify dropped its 2024 20-F, get the full financial scoop.

AI Summary

Spotify Technology S.A. filed its annual 20-F report for the fiscal year ending December 31, 2024. The filing, submitted on February 5, 2025, provides a comprehensive overview of the company's financial performance and business operations. Key financial data and operational details for 2024, 2023, and 2022 are included, alongside information on share capital and reserves.

Why It Matters

This 20-F filing is crucial for investors and analysts as it contains the official audited financial statements and detailed business disclosures for Spotify's 2024 fiscal year, offering insights into the company's performance and strategic direction.

Risk Assessment

Risk Level: medium — The risk level is medium due to the inherent volatility of the tech and media sectors, and the need to analyze detailed financial performance and competitive landscape presented in the filing.

Key Numbers

Key Players & Entities

FAQ

What is the total number of ordinary shares outstanding as of December 31, 2024?

The filing indicates data for ordinary shares for fiscal years ending 2021, 2022, and 2023, but the specific number for December 31, 2024, is not detailed in the provided snippet.

What was Spotify's retained earnings as of December 31, 2023?

The filing snippet shows data for retained earnings for fiscal years ending 2021 and 2022, but the specific figure for December 31, 2023, is not present in the provided text.

What is the company's primary business address?

The company's business address is 33 BOULEVARD PRINCE HENRI, LUXEMBOURG, L-1724.

What is the SEC file number for Spotify Technology S.A.?

The SEC file number is 001-38438.

When was this 20-F form filed?

This 20-F form was filed on February 5, 2025.

Filing Stats: 4,384 words · 18 min read · ~15 pages · Grade level 16.3 · Accepted 2025-02-05 16:55:57

Filing Documents

Forward-looking Statements

Forward-looking Statements 3 PART I 2

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers 4

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable 4

Key Information

Item 3. Key Information 4

Information on the Company

Item 4. Information on the Company 32

Unresolved Staff Comments

Item 4A. Unresolved Staff Comments 39

Operating and Financial Review and Prospects

Item 5. Operating and Financial Review and Prospects 39

Directors, Senior Management and Employees

Item 6. Directors, Senior Management and Employees 54

Major Shareholders and Related Party Transactions

Item 7. Major Shareholders and Related Party Transactions 74

Financial Information

Item 8. Financial Information 75

The Offer and Listing

Item 9. The Offer and Listing 76

Additional Information

Item 10. Additional Information 77

Quantitative and Qualitative Disclosures About Market Risk

Item 11. Quantitative and Qualitative Disclosures About Market Risk 85

Description of Securities Other than Equity Securities

Item 12. Description of Securities Other than Equity Securities 87 PART II 88

Defaults, Dividend Arrearages and Delinquencies

Item 13. Defaults, Dividend Arrearages and Delinquencies 88

Material Modifications to the Rights of Security Holders and Use of Proceeds

Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 88

Controls and Procedures

Item 15. Controls and Procedures 88

Audit Committee Financial Expert

Item 16A. Audit Committee Financial Expert 88

Code of Ethics

Item 16B. Code of Ethics 89

Principal Accountant Fees and Services

Item 16C. Principal Accountant Fees and Services 89

Exemptions from the Listing Standards for Audit Committees

Item 16D. Exemptions from the Listing Standards for Audit Committees 89

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 90

Change in Registrant's Certifying Accountant

Item 16F. Change in Registrant's Certifying Accountant 90

Corporate Governance

Item 16G. Corporate Governance 90

Mine Safety Disclosure

Item 16H. Mine Safety Disclosure 91

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 16I. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 91

Insider Trading Policies

Item 16J. Insider Trading Policies 91

Cybersecurity

Item 16K. Cybersecurity 91 PART III 93

Financial Statements

Item 17. Financial Statements 93

Financial Statements

Item 18. Financial Statements 93

Exhibits

Item 19. Exhibits 93

Signatures

Signatures 96 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS F- 1 i Table of Contents Certain Defined Terms In this report, unless the context otherwise requires, references to "Company," "we," "us," "our," and "Spotify" refer to Spotify Technology S.A. and its direct and indirect subsidiaries on a consolidated basis. Note on Presentation Currency All references in this report to (i) "Euro," "EUR," or "" are to the currency of the member states participating in the European Monetary Union, and (ii) "U.S. dollar," "USD," or "$" are to the currency of the United States. Our reporting currency is the Euro. Presentation of Financial Information In accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB"), we prepare our consolidated financial statements on a historical cost basis, except for our short term investments, long term investments, Exchangeable Notes (as defined herein), and derivative financial instruments, which have been measured at fair value, and our finance lease receivables and lease liabilities, which are measured at present value. Non-IFRS Financial Measures In this report, we present Free Cash Flow, which is a financial measure not recognized by IFRS and that may not be permitted to appear on the face of IFRS-compliant financial statements or notes thereto. For a discussion of Free Cash Flow and a reconciliation to its most closely comparable IFRS measures, see "Item 5.B. Liquidity and Capital Resource." Rounding Certain monetary amounts, percentages, and other figures included in this report have been subject to rounding adjustments. Accordingly, figures shown as totals in certain tables may not be the arithmetic aggregation of the figures that precede them, and figures expressed as percentages in the text may not total 100% or, as applicable, when aggregated may not be the arithmetic aggregation of the percentages that precede them. Table of Contents

Forward-looking Statements

Forward-looking Statements This report contains estimates and forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words "may," "might," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "seek," "believe," "estimate," "predict," "potential," "continue," "contemplate," "possible," and similar words are intended to identify estimates and forward-looking statements. Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our businesses and operations. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to numerous risks and uncertainties and are made in light of information currently available to us. Many important factors may adversely affect our results as indicated in forward-looking statements. These factors include, but are not limited to: our ability to attract prospective users, retain existing users, and monetize our products and services; competition for users, their time, and advertisers; risks associated with our international operations and our ability to manage our growth and the scope and complexity of our business; risks associated with our new products or services and our emphasis on long-term user engagement over short-term results; our ability to predict, recommend, and play content that our users enjoy; our ability to generate profit or positive cash flow on a sustained basis; our ability to convince advertisers of the benefits of our advertising offerings; our ability to forecast or optimize advertising inventory amid evolving industry trends in digital advertising; our ability to generate revenues from podcasts, audiobooks, and other non-music content; potential disputes or liabilities associated with content made available on our Service (as defined below); risks

Identity of Directors, Senior Management and Advisers

Item 1. Identity of Directors, Senior Management and Advisers Not applicable.

Offer Statistics and Expected Timetable

Item 2. Offer Statistics and Expected Timetable Not applicable.

Key Information

Item 3. Key Information A. [Reserved] B. Capitalization and Indebtedness. 4 Table of Contents Not applicable. C. Reasons for the Offer and Use of Proceeds. Not applicable. D. Risk Factors An investment in our ordinary shares involves a high degree of risk. You should carefully read and consider the following risks, along with the other information included in this Annual Report on Form 20-F. The risks described below may not be the only ones we face. If any of these risks actually occur, our business, operating results, financial condition, and cash flow could be materially impaired. The trading price of our ordinary shares could decline due to any of these risks, and you could lose all or part of your investment. The risks described below are organized by risk type and are not listed in order of their priority to us. Risks Related to Our Business Model, Strategy, and Performance If our efforts to attract prospective users, retain existing users, and effectively monetize our products and services are not successful, our growth prospects and revenue will be adversely affected. Our ability to grow our business and generate revenue depends on retaining, expanding, and effectively monetizing our total user base, including by increasing the number of subscribers to our premium service ("Premium Service") and other subscription offerings (together with the Premium Service, "Subscription Offerings") and the number of users of our ad-supported service ("Ad-Supported Service", and together with the Subscription Offerings, the "Service") and finding ways to monetize our products and services. We must convince prospective users of the benefits of our Service and our existing users of the continuing value of our Service. Our ability to attract new users, retain existing users, and engage active users depends in large part on our ability to continue to offer exceptional technologies and products, compelling content, competitive pricing, superior functionality, a

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