Spotify CEO Daniel Ek admitted he overspent in 2022 and plans to tighten up this year as Spotify moves past what it is calling a peak investment year.
The boss of Spotify has admitted he got a “little carried away” as a spending binge on new podcasts and expensive hosts drove the streaming service to a deeper loss at the end of last year. Daniel Ek said his response to whether he regretted the investment drive was “no and yes”, insisting: “I still believe it was the right call to invest and I would do it again.” But he added: “In hindsight I probably got a little carried away and over-invested relative to the uncertainty we saw in the market.”
Spotify (SPOT) delivered earnings and revenue surprises of -11.72% and 0.83%, respectively, for the quarter ended December 2022. Do the numbers hold clues to what lies ahead for the stock?