Janus Henderson Global Sustainable Equity Fund on Spotify Technology S.A.
Thesis
Spotify delivered solid second-quarter results with strong subscriber growth, record margins and upbeat guidance, while also expanding its buyback programme. Management is increasing investment in AI capabilities and infrastructure and sees a large opportunity from new functionality. The longer-term upside case is supported by management targets of up to 40% gross margins and 1 billion subscribers by 2030. ([Spotify][8])
“Spotify reported solid second-quarter results, highlighting strong subscriber growth, record margins and upbeat guidance.”
Key risks
- Execution risk around increased AI and infrastructure investment
- Failure to achieve management's subscriber and margin ambitions