Spotify continues to lead the streaming music market, splitting share in North America with its largest competitor, Apple Music. The company’s Q2 results and Q3 guidance raised our prospects on the stock slightly. More importantly, however, we have updated our valuation metrics on Spotify. Previously we had valued Spotify on only a trailing 12-month customer lifetime value basis. However, this valuation metric did not do an adequate job accounting for Spotify’s growth metrics. We now value Spotify on a combination of one year’s worth of gross margin dollars and one year’s worth of customer lifetime value added, accounting for guidance one […]
Daily Archives: Thursday, July 26, 2018 11:06pm
2 posts
Spotify continues to lead the streaming music market, splitting share in North America with its largest competitor, Apple Music. The company’s Q2 results and Q3 guidance raised our prospects on the stock slightly. More importantly, however, we have updated our valuation metrics on Spotify. Previously we had valued Spotify on only a trailing 12-month customer lifetime value basis. However, this valuation metric did not do an adequate job accounting for Spotify’s growth metrics. We now value Spotify on a combination of one year’s worth of gross margin dollars and one year’s worth of customer lifetime value added, accounting for guidance one […]