Spotify Posted Solid Q1 Results; Guides Lower Than Expected; Stock Remains Attractive; $195 FVE

While Spotify’s first-quarter 2022 results beat the firm’s guidance, they were mixed compared with the FactSet consensus estimates, with revenue coming in below and the bottom line beating expectations. Growth in listener count continues to demonstrate the minimal negative impact of last year’s price increase on listener growth and the material positive effect on listener monetization as it increased year over year for the fourth straight quarter. While the firm’s second-quarter guidance is slightly below the consensus estimate, it still projects for solid double-digit growth in both premium and ad-supported segments.