SPOT - BUY - Machine Learning: Investor Day to Detail Management's Raised Ambitions

Research evidence excerpt

SPOT - BUY - Machine Learning: Investor Day to Detail Management's Raised Ambitions

May 15, 2026

Michael Morris, CFA michael.morris@guggenheimpartners.com SPOT - BUY - Machine Learning: Investor Day to

804 253 8025 Detail Management's Raised Ambitions

Grayson Glenn

grayson.glenn@guggenheimpartners.com

804 253 8053 Key Message: Spotify's May 21 Investor Day comes four years after the June 2022

event where CEO Daniel Ek outlined the "Spotify Machine" vision targeting $100bn Charles Wilber

charles.wilber@guggenheimpartners.com revenue, 1bn users, 40% gross margin, and 20% operating margin over the next decade.

804 335 3977 The company has made significant progress: monthly active users have grown from

422mm in 1Q22 to 761mm as of 1Q26, gross margin expanded from 25.2% to 33.0%, Taylor Manley and operating margin reached 15.8% compared to an operating loss four years ago. taylor.manley@guggenheimpartners.com

804 253 1336 Management framed 2026 as the "Year of Raising Ambition," with Co-CEO Alex Norström

stating on the 4Q25 call that the company is "looking forward to telling you more about

it at our Investor Day in May," while Co-CEO Gustav Söderström teased the vision

of building "the world's first truly intelligent media platform" but noted he would save

SPOT BUY detailsmedium-termfor the event.profitabilityWe expectgoals updatedin 2024. financialOur proprietarytargets giveninvestorthe surveycompanyaheadsurpassedof the

Spotify Technology S.A. event indicates a conservative setup: 65% of respondents do not expect an AI music

Sector: Media & Internet product announcement, consensus medium-term operating margin expectations sit at

~19% (already nearly achieved), and 63% of investors would be buyers on weakness