#1Spotify Q4 2022 Update January 31st, 2023 1#2Table of Contents Spotify Executive Summary Key Highlights Financial Summary MAUS & Subscribers Product & Platform Outlook Financial Statements p.03 p.04 p.06 p.13 p.16 p.21 p.24 2#3Executive Summary We ended 2022 with strong Q4 performance as nearly all of our KPIs surpassed guidance. MAU net additions reached a quarterly record-high of 33 million in Q4, 10 million above guidance. Subscriber growth also materially outperformed, exceeding guidance by 3 million net additions. Revenue growth, excluding the impact of changes in FX, was ahead of expectations. Gross Margin exceeded guidance by 80 bps due primarily to lower investment spending and broad-based music favorability. As expected, our Free Cash Flow was negative in the quarter; however, full year Free Cash Flow remained positive and we expect this trend to continue moving forward on a full year basis. Looking back on 2022 in its entirety, we are pleased with our overall results. Each year presents certain challenges and opportunities and, over the past 12 months, we largely delivered on our internal goals and we are excited about the momentum we are building heading into 2023. Spotify USER & FINANCIAL SUMMARY USERS (M) Total Monthly Active Users ("MAUS") Premium Subscribers Ad-Supported MAUS FINANCIALS (€M) Premium Ad-Supported Total Revenue Gross Profit Gross Margin Operating (Loss)/Income Operating Margin Net Cash Flows From Operating Activities Free Cash Flow¹ Q4 2021 Q3 2022 406 180 236 2,295 394 2,689 712 26.5% (7) (0.3%) 119 103 1 Free Cash Flow is a non-IFRS measure. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. 456 195 273 2,651 385 3,036 (228) (7.5%) Q4 2022 40 35 489 205 295 750 801 24.7% 25.3% 2,717 18% 14% 449 3,166 18% (231) (7.3%) Y/Y (70) (73) 20% 14% 25% 13% -- -- Q/Q 7% 5% 8% 2% 17% 4% 7% 3#4Key Highlights Record high MAU growth of 33 million net additions ● Spotify MAUS grew 20% Y/Y to 489 million, 10 million above guidance. Net additions of 33 million represented our largest ever Q4 growth MAU strength led by Rest of World and Europe as a result of successful marketing campaigns and OEM strength Premium Subscribers grew 14% Y/Y to 205 million, 3 million above guidance, aided by promotional intake and household plans 18% Y/Y Revenue growth and 25.3% Gross Margin Total Revenue grew 18% Y/Y to €3.2 billion Premium Revenue grew 18% Y/Y to €2.7 billion Ad-Supported Revenue grew 14% Y/Y to €449 million, led by Podcasting gains Gross Margin finished above guidance at 25.3% primarily as a result of lower than expected spend on new podcast content investments and broad-based music favorability 8th Annual Spotify Wrapped Campaign draws more than 150 million MAU Users engaging with the 8th annual year-end Spotify Wrapped campaign grew 30% Y/Y across 111 markets Rolled out the first iterations of Google's User Choice Billing to Spotify subscribers in select markets Announced the expansion of Audiobooks a la carte availability in United Kingdom, Ireland, Australia and New Zealand 4#5Key Highlights: Actuals vs. Guidance Users Financials Spotify Monthly Active Users (M) Premium Subscribers (M) Total Revenue (€B) Gross Margin Operating (Loss)/Income (€M) Results Above Above Results Inline Above Above Q4 2022 Actuals 489 205 Q4 2022 Actuals €3.2 25.3% (€ 231) Guidance 479 202 Guidance €3.2 24.5% (€ 300) 01 5#6FINANCIAL SUMMARY 6#7Financial Summary USER, FINANCIAL & LIQUIDITY SUMMARY USERS (M) Total Monthly Active Users ("MAUS") Premium Subscribers Ad-Supported MAUS FINANCIALS (€M) Premium Ad-Supported Total Revenue Gross Profit Gross Margin Operating (Loss)/Income Operating Margin FREE CASH FLOW & LIQUIDITY (EM, unless otherwise denoted) Net Cash Flows From Operating Activities Free Cash Flow¹ Cash & Cash Equivalents, Restricted Cash & Short Term Investments (EB) Spotify Q4 2021 406 180 236 2,295 394 2,689 712 26.5% (7) (0.3%) 119 103 3.6 Q1 2022 422 182 252 2,379 282 2,661 671 25.2% (6) (0.2%) 37 22 3.6 Q2 2022 ¹ Free Cash Flow is a non-IFRS measure. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. 433 188 256 2,504 360 2,864 704 24.6% (194) (6.8%) 39 37 3.6 Q3 2022 456 195 273 2,651 385 3,036 750 24.7% (228) (7.5%) 40 35 3.7 Q4 2022 489 205 295 2,717 449 3,166 801 25.3% (231) (7.3%) (70) (73) 3.4 Y/Y 20% 14% 25% 18% 14% 18% 13% -- -- -- 7#8Financial Summary Revenue Profitability Free Cash Flow & Liquidity Spotify Revenue of €3,166 million grew 18% Y/Y in Q4 (or 12% Y/Y constant currency), reflecting: Premium Revenue growth of 18% Y/Y (or 13% Y/Y constant currency), led by subscriber gains; Ad-Supported Revenue growth of 14% Y/Y (or 4% Y/Y constant currency), led by podcasting; and Currency translation benefits of approximately 600 bps (200 bps less than forecast). Gross Margin was 25.3% in Q4, down 118 bps Y/Y reflecting: Continued growth in Marketplace activity; offset by New podcast content and product investments Operating Loss of (€231) million reflected the above and Operating Expense growth of 44% Y/Y (or 36% Y/Y constant currency), reflecting: Higher personnel costs primarily due to headcount growth and higher advertising costs Currency movements had a negative 751 bps impact on expense growth, or €54 million, given the unfavorable geographic mix of employee costs relative to revenue. Free Cash Flow was (€73) million in Q4. Capital expenditures decreased €11 million Y/Y to €5 million in the quarter. Liquidity remained strong, with €3.4 billion in cash and cash equivalents, restricted cash and short term investments. Our quarter-over-quarter cash position was also impacted by the FX impact on dollar denominated investments. At the end of Q4, our workforce consisted of 10,151 FTEs globally. * Constant currency measures and Free Cash Flow are non-IFRS measures. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. 8#9Revenue Resilient Premium growth, led by subscribers Premium Revenue grew 18% Y/Y to €2,717 million, reflecting subscriber growth of 14% Y/Y and Premium ARPU¹ growth of 3% Y/Y to €4.55 (or down 1% constant currency). Excluding the impact of FX, ARPU performance was slightly impacted by product and market mix. Ad-Supported growth driven by podcasting Ad-Supported revenue grew 14% Y/Y and accounted for 14% of Total Revenue. On a global basis, our music advertising revenue grew mid single digits Y/Y, reflecting double digit Y/Y growth in impressions sold, partially offset by softer pricing due to the current macroeconomic environment. Podcast revenue grew in the mid 30% range Y/Y, reflecting healthy double digit Y/Y growth in impressions sold and pricing. The Spotify Audience Network saw healthy double digit Q/Q growth in participating publishers, shows and advertisers. Spotify €12,500 €10,000 €7,500 €5,000 €2,500 €3,000 €2,000 €1,000 €0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Premium ARPU Premium Revenue, LTM* (EM) Q1'20 Q2 20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Ad-Supported Revenue, LTM* (EM) Ad-Supported Revenue As % Of Total Revenue ¹ Premium Average Revenue per User ("ARPU") * Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter. €6.00 €5.00 €4.00 €3.00 €2.00 25% 20% 15% 10% 5% 9#10Gross Margin Marketplace and podcasting benefits offset by content and product investments Total Gross Margin Q4'18 Q4'19 Q4'20 Spotify 25.3% 11 Q4'21 Q4'22 Gross Margin finished at 25.3% in Q4, down 118 bps Y/Y. The Y/Y trend reflects stable music profitability and improving podcast profitability, which were more than offset by new podcast content and product investments. Premium Gross Margin 28.6% I Q4'18 Q4'19 Q4'20 Q4'21 Q4'22 Premium Gross Margin was 28.6% in Q4, down 56 bps Y/Y. The Y/Y trend reflects improvement in Premium music profitability (aided by Marketplace growth), offset by investments. Ad-Supported Gross Margin II Q4'18 Q4'19 Q4'20 Q4'21 Q4'22 5.1% Ad-Supported Gross Margin was 5.1% in Q4, down 554 bps Y/Y. The Y/Y trend reflects improving podcast profitability offset by new podcast content investments and softer Ad-Supported music profitability (as advertising monetization lagged engagement in select markets). 10#11Operating Expenses Growth largely driven by headcount expansion and unfavorable FX impact Operating Expenses grew 44% Y/Y (or 36% constant currency), driven primarily by higher personnel costs related to headcount growth (global ad sales team, platform investment and acquisitions) and higher advertising expenses (Emerging Markets, Gen Z). These investments largely reflect various growth initiatives that were greenlit toward the end of 2021 and the impact of recent acquisitions such as Podsights, Findaway, Sonantic, Chartable, Whooshkaa and Heardle. As we stated throughout the last year, 2022 was an investment year for the company with our Operating Expenses growing faster than Total Revenue. Moving forward, we expect to see more company wide efficiencies with our expectation that Total Revenue will begin to grow faster than Operating Expenses. As a result, we anticipate a meaningful improvement in our Operating Expense ratios and Operating Income/(Loss) in 2023 and beyond. Spotify 33% 26% Sales & Marketing Q4'22 Y/Y Growth 64% 57% 30% 21% Research & Development General & Administrative Q4'22 Y/Y Growth Constant Currency 11#12Free Cash Flow Building and sustaining a strong balance sheet Free Cash Flow was (€73) million in Q4, a decrease Y/Y as a result of lower Net Income adjusted for non-cash items and reduced favorability in net working capital. Capital expenditures decreased €11 million Y/Y to €5 million as a result of the completion of office build-outs. While the magnitude of Free Cash Flow can fluctuate from quarter to quarter based on seasonality and timing, we have averaged over €200 million of positive Free Cash Flow on a trailing 12 month basis for the past three years. On a cumulative basis, we have generated over €1.3 billion of Free Cash Flow since Q1'16, supporting our strong balance sheet and €3.4 billion in cash and cash equivalents, restricted cash and short term investments balance. Spotify €500 €400 €300 €200 €100 €0 €1,500 €1,000 €500 €0 11 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Free Cash Flow, LTM* (EM) Avg. Free Cash Flow, LTM* (€M) Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q221 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Free Cash Flow, Cume* (€M) * Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter. Cume represents cumulative performance since Q1'16. 12#13MAUS & SUBSCRIBERS 13#14Monthly Active Users (MAUS) Total MAUS grew 20% Y/Y to 489 million, up from 456 million last quarter and above our guidance by 10 million. Quarterly performance versus our guidance was impacted by: ● Outperformance in Rest of World led by India and Indonesia as a result of successful marketing campaigns and OEM strength Spotify Broad-based MAU strength across nearly all regions, aided by 8th annual Wrapped campaign and generally stronger performance around the holiday season Strong growth amongst Gen Z listeners Q4 MAU net additions of 33 million marked an all-time high for the company, bringing full year 2022 net adds to a record high of 83 million (or 88 million excluding the impact of our Russia exit). 12% 22% 30% 36% Q4'18 16% Rest of World 22% 27% 35% Q4'19 19% 22% 24% 35% Q4'20 Latin America 22% 21% 23% 33% Q4'21 North America 28% 21% 21% 30% Q4'22 Europe 14#15Premium Subscribers Our Premium Subscribers grew 14% Y/Y to 205 million, up from 195 million last quarter. Quarterly performance versus our guidance was impacted by: Better than expected Q4 promotional campaign results across all regions Continued strength in multi-user plans Full year 2022 Subscriber net additions were 25 million (or 27 million excluding the impact of our Russia exit). ● Outperformance across all regions, led by Latin America Spotify 10% 20% 30% 40% Q4'18 10% Rest of World 20% 30% 40% Q4'19 11% 21% 29% 40% Q4'20 Latin America 11% 20% 29% 40% Q4'21 North America 12% 21% 28% 39% Q4'22 Europe 15#16PRODUCT & PLATFORM 16#178th Annual Wrapped Campaign Spotify < x This year you had layers, like an onion But you listened to music, unilke an onion Spotify Time to meet your listening personality... Spotty The Adventures You're a seker of sound You venture out into the unknown searching for fresherorists, desper cuts, newer tracks-specially gem yet to be found ENVU ses Varialy sm Share this story Spotify Love the music. Own the merch. #SPOTIFYWRAPPED On November 30, 2022, we launched the 8th annual year-end Spotify Wrapped campaign to users in 111 markets. Collectively, 156 million MAUs engaged with Wrapped content in Q4 (up 30% Y/Y) and there was strong Y/Y growth in engagement across all regions and demographics. This year we included artist merch in the app to help fans get closer to their favorite artists. During the Wrapped campaign, we hit the highest-grossing merch sales week for artists in Spotify history. The Wrapped campaign also debuted concerts for the first time and serviced concerts engaging millions of users, resulting in a 2.7x increase in visitors to artist tour pages. 17#18Podcasting Announced that Emma Chamberlain's hit podcast Anything Goes would come exclusively to Spotify. Spotify 2장 ▸ 거봐? ( 2 10:44 투모로우바이투게더의 근황 Daebak Show w/Eric Nam DIVE STUDIOS DAEBAK SHOW 16 16 CH PAR III O 200 C S 조선의 마기 썬킴의 세계사 1 CO 163 Brought our four million+ podcasts to South Korea so that more fans than ever can enjoy shows from around the globe. A SPOTIFY ORIGINAL WOW TERNYATA FAKTUAL WTE VICE A SPOTIFY ORIGINAL CENSUS NUSANTARA VICE A SPOTIF SO CH Partnered with VICE Media Group Asia to bring five new video podcasts to Spotify in Indonesia. The U.K.'s Keep It Light Media joined Megaphone and Rob Beckett and Josh Widdicombe's Parenting Hell became a Spotify Exclusive. Megaphone by Spotify podsights Chartable Launched a new offering in Europe that gives Megaphone podcast publishers free access to Chartable and Podsights. 18#19Music Releases On October 21st, Taylor Swift released her 10th studio album, Midnights, which became Spotify's most-streamed album in a single day and broke the record for the most-streamed artist in a single day in Spotify history. Spotify HOT COUNTRY On October 14th, we launched our artist marketing campaign in support of Bailey Zimmerman's debut EP, Leave The Light On, which was the biggest streaming Country debut of all time. MARIA BECERRA LA NEWA DE ARGENTINA ENHANCED ALBUM In early December, Maria Becerra released her album, La Nena de Argentina, providing her fans the opportunity to understand the concept behind it via an Enhanced Album. 19#20Google User Choice Billing Rollout Spotify Review your plan Premium Individual Premiur account Free menth starts Paid subscription starts Change plan Spotify Free FOR 1 MONTH Only $9.99-tas/month after 1month free . Cancel anytime. Offer terms apply You'll be charged monthly, starting April 8. 2022. Today April 8, 2022 Choose how to pay You can pay for your Premium plan directly through Spotify or using your Google Play account. Continue Google Play Pay for your Premium plan directly through Spotify with any supported payment method. ves 51 Review your plan Premium Individual 1 Premium account Free month sterts Paid subscription starts Payment method Credit or debit card VISA • Orly $9.99+ ax/month after 1month free. - Cansel anytime. Offer terms apsty You'll be charged monthly, starting April 8, 2022 Paypal PayPal Changa plan Free FOR 1 MONTH O Today April 8, 2022 USA Change country ||| Review your plan Premium Individual 1 Premium account Free month starts Paid subscription starts Spotify Change plan Only $9.99 + tax/month after 1month free. Cancel anytime. Ofler terms apply • You'l be charged monthly, starting April 2022. Free FOR 1 MONTH Choose how to pay You can pay for your Premium plan directly through Spotify or using your Google Play account. VIS Today April 8, 2022 Continue Pay for your Premium plan directly through Spotify with any supported payment method. (28 Google Play ||| spotify.com You've got Premium 2 O Spotify You're Premium now You'll receive an email from Google Play confirming your Premium plan purchase. View your Premium plan info or cancel anytime on your Spotify Account page. Spotify COMPANY About Jobs Press Open Spotify O COMMUNITIES For Artists Developers Brands ||| In November, we rolled-out the first iteration of User Choice Billing to select Spotify users in 10+ markets. Over the last few months, we've expanded the roll-out to more than 140 markets around the world. 20#21OUTLOOK 21#22Outlook for Q1'23 The following forward-looking statements reflect Spotify's expectations for Q1 2023 as of January 31, 2023 and are subject to substantial uncertainty. Total MAUS Total Premium Subscribers Total Revenue Gross Margin Operating (Loss)/Income Spotify 500 million 207 million €3.1 billion 24.9% €(194) million Implies the addition of approximately 11 million net new MAUS in the quarter Implies the addition of approximately 2 million net new subscribers in the quarter Assumes approximately 100 bps tailwind to growth Y/Y due to favorability in foreign exchange rates Reflects Y/Y improvement in music and podcasting offset by a modest drag in Other Cost of Revenue and severance-related charges Inclusive of the Operating Loss is an approximate €19 million impact to Operating Expenses due to Y/Y unfavorability in foreign exchange rates and a €35-45 million impact to Operating Expenses due to severance-related charges 22#23Webcast Information We will host a live question and answer session starting at 8:00 a.m. ET today on investors.spotify.com. Daniel Ek, our Founder and CEO, and Paul Vogel, our Chief Financial Officer, will be on hand to answer questions submitted through slido.com using the event code #Spotify EarningsQ422. Participants also may join using the listen-only conference line by registering through the following site: https://conferencingportals.com/event/txExvogt We use investors.spotify.com and newsroom.spotify.com websites as well as other social media listed in the "Resources - Social Media" tab of our Investors website to disclose material company information. Use of Non-IFRS Measures To supplement our financial information presented in accordance with IFRS, we use the following non-IFRS financial measures: Revenue excluding foreign exchange effect, Premium revenue excluding foreign exchange effect, Ad-Supported revenue excluding foreign exchange effect, Operating expense excluding foreign exchange effect, Sales and marketing expense excluding foreign exchange effect, Research and development expense excluding foreign exchange effect, General and administrative expense excluding foreign exchange effect, and Free Cash Flow. Management believes that Revenue excluding foreign exchange effect, Premium revenue excluding foreign exchange effect, Ad-Supported revenue excluding foreign exchange effect, Operating expense excluding foreign exchange effect, Sales and marketing expense excluding foreign exchange effect, Research and development expense excluding foreign exchange effect, and General and administrative expense excluding foreign exchange effect are useful to investors because they present measures that facilitate comparison to our historical performance. However, these should be considered in addition to, not as a substitute for or superior to, Revenue, Premium revenue, Ad-Supported revenue, Operating expense, Sales and marketing expense, Research and development expense, and General and administrative expense, or other financial measures prepared in accordance with IFRS. Management believes that Free Cash Flow is useful to investors because it presents a measure that approximates the amount of cash generated that is available to repay debt obligations, to make investments, and for certain other activities that exclude certain infrequently occurring and/or non-cash items. However, Free Cash Flow should be considered in addition to, not as a substitute for or superior to, net cash flows (used in)/from operating activities or other financial measures prepared in accordance with IFRS. For more information on these non-IFRS financial measures, please see "Reconciliation of IFRS to Non-IFRS Results" section below. Forward Looking Statements This shareholder update contains estimates and forward-looking statements. All statements other than statements of historical fact are forward-looking statements. The words "may," "might," "will," "could," "would," "should," "expect," "plan," "anticipate," "intend," "seek," "believe," "estimate," "predict," "potential," "continue," "contemplate," "possible," and similar words are intended to identify estimates and forward-looking statements. Our estimates and forward-looking statements are mainly based on our current expectations and estimates of future events and trends, which affect or may affect our businesses and operations. Although we believe that these estimates and forward-looking statements are based upon reasonable assumptions, they are subject to numerous risks and uncertainties and are made in light of information currently available to us. Many important factors may adversely affect our results as indicated in forward-looking statements. These factors include, but are not limited to: our ability to attract prospective users, retain existing users, and monetize our products and services; competition for users, user listening time, and advertisers; risks associated with our international operations and our ability to manage our growth; risks associated with our new products or services and our emphasis on long-term user engagement over short-term results; our ability to predict, recommend, and play content that our users enjoy; our ability to be profitable or generate positive cash flow on a sustained basis; our ability to convince advertisers of the benefits of our advertising offerings; our ability to forecast or optimize advertising inventory amid emerging industry trends in digital advertising; our ability to generate revenues from podcasts, audiobooks, and other non-music content; potential disputes or liabilities associated with content made available on our premium service and ad-supported service (collectively, the "Service"); risks relating to acquisitions, investments, and strategic alliances; our dependence upon third-party licenses for most of the content we stream; our lack of control over third-party content providers who are concentrated and can unilaterally affect our access to content; our ability to comply with complex license agreements; our ability to accurately estimate royalty payments under our license agreements and relevant statutes; the limitations on our operating flexibility due to financial commitments required under certain of our license agreements; our ability to identify the compositions embodied in sound recordings and ownership thereof in order to obtain licenses or comply with existing license agreements; assertions by third parties of infringement or other violations by us of their intellectual property rights; our ability to protect our intellectual property; the dependence of streaming on operating systems, online platforms, hardware, networks, regulations, and standards that we do not control; our ability to maintain the integrity of our technology structure and systems or the security of confidential information; undetected errors, bugs or vulnerabilities in our products; interruptions, delays, or discontinuations in service arising from our systems or systems of third parties; changes in laws or regulations affecting us; risks relating to privacy and data security; our ability to maintain, protect, and enhance our brand; risks associated with increased scrutiny of environmental, social, and governance matters; payment-related risks; our dependence on key personnel and ability to attract, retain, and motivate highly skilled employees; our ability to access to additional capital to support growth; risks relating to currency exchange rate fluctuations and foreign exchange controls; the impact of economic, social, or political conditions, including the continuing effects of the COVID-19 pandemic, rising inflation and interest rates, the continued conflict between Russia and Ukraine, and supply chain disruptions; our ability to accurately estimate user metrics and other estimates; our ability to manage and remediate attempts to manipulate streams and attempts to gain or provide unauthorized access to certain features of our Service; risks related to our indebtedness, including risks related to our Exchangeable Notes; fluctuation of our operating results and fair market value of ordinary shares; tax-related risks; the concentration of voting power among our founders, which limits shareholders' ability to influence our governance and business; and risks related to our status as a foreign private issuer and a Luxembourg company. A detailed discussion of these and other risks and uncertainties that could cause actual results and events to differ materially from our estimates and forward-looking statements is included in our filings with the U.S. Securities and Exchange Commission ("SEC"), including our Annual Report on Form 20-F filed with the SEC on February 3, 2022, as updated by subsequently reports filed with the SEC. We undertake no obligation to update forward-looking statements to reflect events or circumstances occurring after the date of this shareholder update. Rounding Certain monetary amounts, percentages, and other figures included in this update have been subject to rounding adjustments. The sum of individual metrics may not always equal total amounts indicated due to rounding. Spotify 23#24FINANCIAL STATEMENTS 24#25Trending Charts MAUS, Ad-Supported Users, Premium Subscribers & Revenue By Segment 500 400 300 200 100 0 Spotify Q4'20 Monthly Active Users (M) 500 400 300 200 100 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Ad-Supported Users (M) Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Premium Subscribers (M) Q4'22 * Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter. €12,500 €10,000 €7,500 €5,000 €2,500 N €0 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Ad-Supported Revenue, LTM* (EM) Q3'21 Q4'21 Premium Revenue, LTM" (EM) 25#26Trending Charts Gross Profit By Segment, Gross Margin By Segment & Free Cash Flow €3,000 €2,000 €1,000 €0 Ad-Supported Gross Profit, LTM* (EM) Spotify Premium Gross Profit, LTM* (EM) 40.0% 30.0% 20.0% 10.0% 0.0% I Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Ad-Supported Gross Margin, LTM* Q1'22 Premium Gross Margin, LTM^ Q2'22 Q3'22 Q4'22 Total Gross Margin, LTM* * Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter. €300 €200 €100 8 €0 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q221 Free Cash Flow, LTM* (EM) Q2'22 Q3'22 Q4'22 26#27Trending Charts MAU & Subscriber Net Additions MAU Net Additions 500 400 300 200 100 Spotify 0 160 2017 4 Yr. MAU Avg. = 71mn 47 2018 64 2019 *All figures exclude Russia. 71 2020 59 2021 88 2022 489 Subtotal Subscriber Net Additions 250 200 150 100 50 0 4 Yr. Subscriber Avg. = 27mn 71 2017 25 2018 28 2019 30 2020 24 2021 27 2022 205 Subtotal 27#28Consolidated statement of operations (Unaudited) (in € millions, except share and per share data) Revenue Cost of revenue Gross profit Research and development Sales and marketing General and administrative Operating (loss)/income Finance income Finance costs Finance income/(costs) - net (Loss)/income before tax Income tax (benefit)/expense Net loss attributable to owners of the parent Loss per share attributable to owners of the parent Basic Diluted Weighted-average ordinary shares outstanding Basic Diluted December 31, 2022 3,166 2,365 801 415 453 164 1,032 (231) 26 (86) (60) (291) (21) (270) (1.40) (1.40) 193,228,229 193,228,229 Three months ended September 30, 2022 3,036 2,286 750 386 432 160 978 (228) 102 (18) 84 (144) 22 (166) (0.86) (0.99) 193,077,334 195,988,834 December 31, 2021 2,689 1,977 712 253 340 126 719 (7) 20 (21) (1) (8) 31 (39) (0.20) (0.21) 191,952,473 192,144,654 Twelve months ended December 31, 2022 December 31, 2021 9,668 11,727 8,801 7,077 2,926 2,591 1,387 912 1,135 1,572 626 450 2,497 94 246 3,585 (659) 421 (132) 289 (370) 60 (430) (2.23) (2.93) 192,934,862 195,846,362 (91) 155 249 283 (34) (0.18) (1.03) 191,298,397 193,943,455 28#29Consolidated statement of financial position (Unaudited) (in € millions) Assets Non-current assets Lease right-of-use assets Property and equipment Goodwill Intangible assets Long term investments Restricted cash and other non-current assets Deferred tax assets Current assets Trade and other receivables Income tax receivable Short term investments Cash and cash equivalents Other current assets Total assets Equity and liabilities Equity Share capital Other paid in capital Treasury shares Other reserves Accumulated deficit Equity attributable to owners of the parent Non-current liabilities Exchangeable Notes Lease liabilities Accrued expenses and other liabilities Provisions Deferred tax liabilities Current liabilities Trade and other payables Income tax payable Deferred revenue Accrued expenses and other liabilities Provisions Derivative liabilities Total liabilities Total equity and liabilities December 31, 2022 417 348 1,168 127 1,138 78 8 3,284 690 5 867 2,483 307 4,352 7,636 4,789 (262) 1,521 (3,647) 2,401 1,128 555 28 3 5 1,719 845 11 520 2,093 26 21 3,516 5,235 7,636 December 31, 2021 437 372 894 89 916 77 13 2,798 621 5 756 2,744 246 4,372 7,170 4,746 (260) 853 (3,220) 2,119 1,202 579 37 7 1,825 793 23 458 1,841 22 89 3,226 5,051 7,170 29#30Consolidated statement of cash flows (Unaudited) (in € millions) Operating activities Net loss Adjustments to reconcile net loss to net cash flows Depreciation of property and equipment and lease right-of-use assets Amortization of intangible assets Share-based compensation expense Excess and obsolete reserve Finance income Finance costs Income tax (benefit)/expense Other Changes in working capital: Increase in trade receivables and other assets Increase in trade and other liabilities Increase in deferred revenue (Decrease)/increase in provisions nterest paid on lease liabilities Interest received Income tax paid Net cash flows (used in)/from operating activities Investing activities Business combinations, net of cash acquired Purchases of property and equipment Purchases of short term investments Sales and maturities of short term investments Proceeds from sale of long term investment Change in restricted cash Other Net cash flows (used in)/from investing activities Financing activities Payments of lease liabilities Lease incentives received Proceeds from exercise of stock options Proceeds from issuance of Exchangeable Notes, net of costs Proceeds from issuance of warrants Repurchases of ordinary shares Payments for employee taxes withheld from restricted stock unit releases Net cash flows (used in)/from financing activities Net (decrease)/increase in cash and cash equivalents Cash and cash equivalents at beginning of the period Net foreign exchange (losses)/gains on cash and cash quivalents Cash and cash equivalents at period end December 31, 2022 (270) 32 18 100 (26) 86 (21) 3 (69) 74 16 (13) 20 (18) (70) | (5) (168) 71 2 (1) (101) (12) (9) (21) (192) 2,851 (176) 2,483 Three months ended September 30, 2022 (166) 30 14 108 (2) (102) 18 22 5 (6) 117 20 (12) (14) 12 (4) 40 (107) (5) (78) 78 4 (109) (11) 11111 (10) (21) (90) 2,786 155 2,851 December 31, 2021 (39) 25 8 50 (20) 21 31 3 (63) 92 17 8 (13) 119 (14) (16) (112) 88 144 (3) 87 (10) 64 (65) (14) (25) 181 2,512 51 2,744 Twelve months ended December 31, 2022 December 31, 2021 (430) 118 53 381 14 (421) 132 60 7 (84) 226 52 (3) (53) 37 (43) 46 (306) (25) (457) 368 5 (8) (423) (43) 2 43 (2) (40) (40) (417) 2,744 156 2,483 (34) 94 33 223 (246) 91 283 6 (245) 137 67 5 (50) 3 (6) 361 (115) (85) (497) 375 144 1 (10) (187) (35) 7 167 1,223 31 (89) (54) 1,250 1,424 1,151 169 2,744 30#31Calculation of basic and diluted loss per share (Unaudited) (in € millions, except share and per share data) Basic loss per share Net loss attributable to owners of the parent Shares used in computation: Weighted-average ordinary shares outstanding Basic loss per share attributable to owners of the parent Diluted loss per share Net loss attributable to owners of the parent Fair value gains on dilutive warrants Fair value gains on dilutive Exchangeable Notes Net loss used in the computation of diluted loss per share Shares used in computation: Weighted-average ordinary shares outstanding Warrants Exchangeable Notes Diluted weighted-average ordinary shares Diluted loss per share attributable to owners of the parent December 31, 2022 (270) 193,228,229 (1.40) (270) (270) 193,228,229 193,228,229 (1.40) Three months ended September 30, 2022 (166) 193,077,334 (0.86) (166) - (28) (194) 193,077,334 2,911,500 195,988,834 (0.99) December 31, 2021 (39) 191,952,473 (0.20) (39) (41) 191,952,473 192,181 192,144,654 (0.21) Twelve months ended December 31, 2022 December 31, 2021 (430) 192,934,862 (2.23) (430) (144) (574) 192,934,862 2,911,500 195,846,362 (2.93) (34) 191,298,397 (0.18) (34) (53) (112) (199) 191,298,397 220,137 2,424,921 193,943,455 (1.03) 31#32Reconciliation of IFRS to non-IFRS results Revenue on a constant currency basis (Unaudited) (in € millions, except percentages) IFRS revenue Foreign exchange effect on 2022 revenue using 2021 rates Revenue excluding foreign exchange effect IFRS revenue year-over-year change % Revenue excluding foreign exchange effect year-over-year change % IFRS Premium revenue Foreign exchange effect on 2022 Premium revenue using 2021 rates Premium revenue excluding foreign exchange effect IFRS Premium revenue year-over-year change % Premium revenue excluding foreign exchange effect year-over-year change % IFRS Ad-Supported revenue Foreign exchange effect on 2022 Ad-Supported revenue using 2021 rates Ad-Supported revenue excluding foreign exchange effect IFRS Ad-Supported revenue year-over-year change % Ad-Supported revenue excluding foreign exchange effect year-over-year change % Three months ended December 31, 2021 2,689 December 31, 2022 3,166 162 3,004 18% 12% 2,717 123 2,594 18% 13% 449 39 410 14% 4% 2,295 394 Twelve months ended December 31, 2021 9,668 December 31, 2022 11,727 682 11,045 21% 14% 10,251 536 9,715 21% 15% 1,476 146 1,330 22% 10% 8,460 1,208 32#33Reconciliation of IFRS to non-IFRS results Free Cash Flow (Unaudited) (in € millions) Net cash flows from/(used in) operating activities Capital expenditures Change in restricted cash Free Cash Flow Free Cash Flow (Unaudited) (in € millions) June 30, 2019 Net cash flows from operating activities Capital expenditures Change in restricted cash Free Cash Flow Free Cash Flow (Unaudited) (in € millions) Net cash flows from operating activities Capital expenditures Change in restricted cash Free Cash Flow 90 (40) 50 September 30, 2019 71 (26) 3 48 December March 31, 31, 2019 2020 March 31, 2020 355 (110) 1 246 203 (32) (2) 169 June 30, 2020 304 73 December 31, 2016 101 (27) (1) (84) 3 223 (9) (12) (21) June 30, 2020 39 (14) 2 27 September 30, 2020 355 (75) (2) 278 September 30, 2020 122 December 31, 2017 179 (36) (34) 109 (17) (2) 103 December 31, 2020 259 (78) 2 183 Three months ended December March 31, 31, 2020 2021 107 (35) 2 74 March 31, 2021 333 (90) 2 245 December 31, 2018 344 (125) (10) 209 65 (24) 41 348 (96) June 30, 2021 Last twelve months ended June 30, September 2021 30, 2021 252 54 (20) 34 349 (104) 3 248 Twelve months ended September 30, 2021 December 31, 2019 573 (135) 2 440 123 (25) 1 99 December 31, 2021 December 31, 2021 361 (85) 1 277 119 (16) 103 March 31, 2022 December 31, 2020 March 31, 2022 259 (78) 2 183 333 (71) (4) 258 37 (10) (5) 22 June 30, 2022 June 30, 2022 318 (56) (1) 261 39 (5) 3 37 September 30, 2022 September 30, 2022 December 31, 2021 361 (85) 1 277 40 35 235 (5) (36) (2) 197 December 31, 2022 (70) 2 (73) December 31, 2022 46 (25) 21 December 31, 2022 46 (25) 21 33#34Reconciliation of IFRS to non-IFRS results Operating expenses on a constant currency basis (Unaudited) (in € millions, except percentages) IFRS Operating expenses Foreign exchange effect on 2022 operating expenses using 2021 rates Operating expenses excluding foreign exchange effect IFRS Operating expenses year over year change % Operating expenses excluding foreign exchange effect year-over-year change % IFRS Research and development expenses Foreign exchange effect on 2022 expenses using 2021 rates Research and development expenses excluding foreign exchange effect IFRS Research and development expenses year over year change % Research and development expenses excluding foreign exchange effect year-over-year change % IFRS Sales and marketing expenses Foreign exchange effect on 2022 expenses using 2021 rates Sales and marketing expenses excluding foreign exchange effect IFRS Sales and marketing expenses year over year change % Sales and marketing expenses excluding foreign exchange effect year-over-year change % IFRS General and administrative expenses Foreign exchange effect on 2022 expenses using 2021 rates General and administrative expenses excluding foreign exchange effect IFRS General and administrative expenses year over year change % General and administrative expenses excluding foreign exchange effect year-over-year change % Three months ended December 31, 2021 719 December 31, 2022 1,032 54 978 44% 36 % Three months ended December 31, 2022 415 18 397 64 % 57 % Three months ended December 31, 2022 December 31, 2021 453 340 25 428 33 % 26% December 31, 2021 253 Three months ended December 31, 2022 164 11 153 30 % 21 % December 31, 2021 126 34#35Spotify