#1Spotify Q2 2022 Update July 27th, 2022 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.20 p.23 2#3Executive Summary Nearly all of our key metrics surpassed guidance in Q2'22, led by MAU and Subscriber outperformance, healthy Revenue growth and a modestly better Operating Loss. Most notably, MAU performance accelerated this quarter, with net additions reaching a record Q2 high of 19 million¹. Reported Gross Margin was negatively impacted by our decision to stop manufacturing Car Thing, partially offset by a positive change in prior period estimates for rights holder liabilities. Excluding the one-time charge and change in accruals, Gross Margin of 25.3%² was modestly ahead of guidance. Free Cash Flow was a positive €37 million. While we continue to monitor the uncertain macro environment, we are very pleased with the resilience of the business, particularly our strength in MAUs and Subscribers. Spotify USER & FINANCIAL SUMMARY USERS (M) Total Monthly Active Users ("MAUS") Premium Subscribers Ad-Supported MAUS FINANCIALS (EM) Premium Ad-Supported Total Revenue Gross Profit Gross Margin Adjusted Gross Margin² Operating (Loss)/Income Operating Margin Net Cash Flows From Operating Activities Free Cash Flow³ Q2 2021 Q1 2022 365 165 210 2,056 275 2,331 663 28.4% 26.5% 12 0.5% 1 Excludes the effects of our exit from Russia and the brief service outage benefit we experienced in March. 2 Adjusted Gross Margin is a non-IFRS measure. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. 3 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. 54 34 422 182 252 2,379 282 2,661 671 25.2% Q2 2022 37 22 433 19% 188 14% 256 22% Y/Y Q/Q 2,504 22% 360 31% 2,864 23% (6) (194) (0.2%) (6.8%) 704 6% 24.6% 25.3% 39 37 -- -- 11 -- 3% 3% 2% 5% 28% 8% 5% 3#4Key Highlights Accelerating user growth and consistent subscriber performance MAUS grew 19% Y/Y to 433 million, 5 million above guidance. Net additions of 19 million¹ represented our largest ever Q2 growth MAU strength was led by successful marketing campaigns in Rest of World, reactivations in Europe and Gen Z strength in Latin America Premium Subscribers grew 14% Y/Y to 188 million2, above our guidance, aided by promotional intake and household plans Spotify 23% Y/Y Revenue growth, led by Advertising Total Revenue grew 23% Y/Y to €2.9 billion Premium Revenue grew 22% Y/Y to €2.5 billion Ad-Supported Revenue grew 31% Y/Y to €360 million, reaching an all-time high as a percent of Total Revenue at 13% for Q2 Gross Margin finished at 25.3%³ excluding Car Thing charge and accrual benefits (or 24.6% on an as reported basis) Optimizing capital allocation for long-term value creation Accelerating expansion into audiobooks with the closing of the Findaway acquisition on June 15th and pioneering the creation of new user experiences with the announced acquisition of Sonantic Announced intention to reduce hiring growth for the back half of 2022 by 25% and monitoring macroeconomic conditions 1 Excludes the effects of our exit from Russia and the brief service outage benefit we experienced in March. 2 Inclusive of approximately 600k disconnects arising from the closure of our Russian operations. ³ Adjusted Gross Margin is a non-IFRS measure. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. 4#5Key Highlights: Actuals vs. Guidance Users Financials Spotify Monthly Active Users (M) Premium Subscribers (M) Total Revenue (€M) Gross Margin Adjusted Gross Margin¹ Operating (Loss)/Income (€M) Results Above Above Results Above Below Above Above Q2 2022 Actuals 433 188 Q2 2022 Actuals €2,864 24.6% 25.3% (€ 194) ¹ Adjusted Gross Margin is a non-IFRS measure. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. Guidance 428 187 Guidance €2,800 25.2% 25.2% (€ 197) 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 (€B) Spotify Q2 2021 365 165 210 2,056 275 2,331 663 28.4% 12 0.5% 54 34 3.1 Q3 2021 381 172 220 2,178 323 2,501 668 26.7% 75 3.0% 123 99 3.3 Q4 2021 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. 406 180 236 2,295 394 2,689 712 26.5% Q1 2022 119 103 3.6 422 182 252 2,379 282 2,661 671 25.2% (6) (7) (0.3%) (0.2%) 37 22 3.6 Q2 2022 433 188 256 704 24.6% 2,504 360 22% 31% 2,864 23% (194) (6.8%) % Change Y/Y 39 37 3.6 19% 14% 22% 6% 7#8Financial Summary Revenue Profitability Free Cash Flow & Liquidity Spotify Revenue of €2,864 million grew 23% Y/Y in Q2 (or 15% Y/Y constant currency), reflecting: Premium Revenue growth of 22% Y/Y (or 14% Y/Y constant currency), led by subscriber gains; and Ad-Supported Revenue growth of 31% Y/Y (or 17% Y/Y constant currency), led by music and podcasting gains Gross Margin was 24.6% in Q2, down 386 bps Y/Y and below guidance due to the decision to stop manufacturing Car Thing. Excluding the €31 million charge associated with this action and the benefits arising from changes in prior period estimates for rightsholder liabilities in both the Q2'21 and Q2'22 periods, Adjusted Gross Margin¹ was 25.3%, down 123 bps Y/Y, reflecting: Continued growth in Marketplace activity and favorable revenue mix shift to podcasting; offset by Non-music content and product enhancement spend, as well as increased publishing rates Operating Loss of (€194) million reflected the above and Operating Expense growth of 38% Y/Y (or 28% Y/Y constant currency), reflecting: Higher personnel costs primarily due to headcount growth (global ad sales team expansion + acquisitions) and higher advertising costs for growth initiatives (Emerging Markets, Gen Z), partially offset by lower Social Charges Given the geographic mix of employees, currency movements had a negative 968 bps impact on expense growth Free Cash Flow² was €37 million in Q2, a slight increase Y/Y as lower Net Income adjusted for non-cash items was offset by favorability in net working capital. Liquidity remained strong, with €3.6 billion in cash and cash equivalents, restricted cash and short term investments. At the end of Q2, our workforce consisted of 9,058 FTEs globally. ¹ Adjusted Gross Margin is a non-IFRS measure. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. 2 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. 8#9Revenue Consistent Premium growth, led by subscribers Premium Revenue grew 22% Y/Y to €2,504 million, reflecting subscriber growth of 14% Y/Y and Premium ARPU¹ growth of 6% Y/Y to €4.54 (or flat constant currency). Excluding the impact of FX, ARPU performance benefited from price increases implemented in the prior year period and was offset by growth in multi-user accounts. Ad-Supported % of Total Revenue at new Q2 high Advertising revenue grew 31% Y/Y to reach 13% of Total Revenue, reflecting growth across all regions and sales channels. Our music business saw healthy double-digit growth Y/Y, led by double-digit growth in CPMs and a mid-single digit increase in impressions sold. Podcast revenue grew in the strong double-digit range Y/Y, led by the Spotify Audience Network (where sold impressions grew triple-digits and CPMs grew healthy double-digits). Spotify €10,000 €8,000 €6,000 €4,000 €2,000 €1,500 €1,000 €500 €0 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Premium Revenue, LTM* (EM) -Premium ARPU Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 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 15% 13% 10% 8% 5% 9#10Gross Margin Marketplace and Podcasting benefits offset by content/product investments and Car Thing Total Gross Margin Premium Gross Margin Ad-Supported Gross Margin III Q2'18 25.3%* Q2'19 Q2'20 Q2'21 Q2'22 Accrual Benefit Car Thing Charge and Accrual Benefit Spotify Gross Margin finished at 24.6% in Q2, or 25.3%* excluding the €31 million charge for Car Thing and a net €11 million benefit related to changes in historical estimates for rights holder liabilities. Q2'18 Q2'19 28.8%* Q2'20 Q2'21 Q2'22 Accrual Benefit Car Thing Charge and Accrual Benefit Premium Gross Margin was 28.0% in Q2, down 283 bps Y/Y. Excluding the Car Thing charge and change in accruals, Premium Gross Margin was 28.8%*, flat Y/Y, reflecting Marketplace growth, offset by increased publishing rates and product enhancement spend. Q2'18 Q2'19 Q2'20 Q2'21 Accrual Benefit 1.1%* *Adjusted Gross Margin is a non-IFRS measure. See "Use of Non-IFRS Measures" and "Reconciliation of IFRS to Non-IFRS Results" for additional information. Q2'22 Ad-Supported Gross Margin was 1.1% in Q2, down 980 bps Y/Y, reflecting favorable revenue mix shift towards podcasts and Marketplace growth, offset by non-music content spend, product enhancement spend and increased publishing rates. 10#11Operating Expenses Growth largely driven by headcount expansion and unfavorable FX impact Operating Expenses grew 38% Y/Y (or 28% constant currency), largely reflecting the various growth initiatives that were greenlit toward the end of 2021 and, to a lesser extent, the impact of recent acquisitions such as Podsights, Chartable and Whooshkaa. As stated at our 2022 Investor Day, much of the expense growth we are seeing in Q2 is the result of decisions we made toward the end of 2021 to invest in expanding our global sales team to drive new international ads monetization potential, increased marketing for user growth in many of our newer markets and platform innovation. In June, we announced plans to slow headcount growth by 25% beginning in Q3, while also taking a closer look at marketing activity. Spotify 40% 30% Sales & Marketing Q2'22 Y/Y Growth 32% 25% 46% 32% Research & Development General & Administrative Q2'22 Y/Y Growth Constant Currency 11#12Free Cash Flow The 9th quarter in a row of positive FCF Free Cash Flow was €37 million in Q2, a slight increase Y/Y as lower Net Income adjusted for non-cash items was offset by favorability in net working capital. This was the 9th quarter in a row of positive Free Cash Flow. 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. Spotify €500 €400 €300 €200 € 100 €0 lu Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 * Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter. Free Cash Flow, LTM* (€M) 12#13MAUS & SUBSCRIBERS 13#14Monthly Active Users (MAUS) Total MAUS grew 19% Y/Y to 433 million, up from 422 million last quarter and above our guidance by 5 million. Quarterly performance versus our guidance was impacted by: ● Outperformance in India, Indonesia and The Philippines as a result of marketing campaigns and elevated OEM intake Spotify Strength in Europe largely due to higher reactivations Y/Y growth in Gen Z audience in Latin America alongside new music releases Excluding the impact from our Russia exit and the service outage benefit we experienced in March (representing a collective 8 million Q1 MAU), we added 19 million MAUs in the quarter, our largest Q2 in history. 11% 21% 31% 37% Q2'18 15% Rest of World 21% 28% 36% Q2'19 18% 22% 26% 34% Q2'20 Latin America 20% 22% 24% 34% Q2'21 North America 24% 22% 22% 32% Q2'22 Europe 14#15Premium Subscribers Our Premium Subscribers grew 14% Y/Y to 188 million, up from 182 million last quarter. Quarterly performance versus our guidance was impacted by: ● Spotify Outperformance across all regions led by Europe and Latin America Q2 promotional campaign extended one week (5 weeks total vs. 4 weeks prior year) contributing to subscriber upside Multi-user plans continued to exhibit strength 9% 20% 31% 40% Q2'18 10% Rest of World 20% 30% 40% Q2'19 11% 21% 29% 39% Q2'20 Latin America 11% 20% 29% 40% Q2'21 North America 12% 21% 29% 39% Q2'22 Europe 15#16PRODUCT & PLATFORM 16#17Two-Sided Marketplace & Podcasting Two-Sided Marketplace During the quarter, we continued to see triple digit Y/Y growth in total campaign volume for Sponsored Recommendations. We also announced new targeting features for Sponsored Recommendations created in Spotify for Artists. United States based teams can now promote eligible new releases to listeners outside of the United States in 13 new markets the 10 largest streaming markets in the world. including 7 of Podcasting At the end of Q2, we had 4.4 million podcasts on the platform. The number of MAUs that engaged with podcasts grew in the substantial double-digits Y/Y and per user podcast consumption rates continued to rise. We released 100 new Original and Exclusive podcasts globally in Q2 with Batman Unburied hitting #1 in several key markets. Additionally, video podcasts are now available to creators via Anchor in 11 markets. Spotify R E C Brand new music for you! Home Daily Mix 1 New Album Artist GO TO ALBUM Sponsored recommendation. What's this? laily Mix 2 DISMISS Da 17#18Acquisitions During the quarter, we closed on our acquisition of Findaway. Findaway works across the entire audiobook ecosystem with a platform and offerings that serve authors, publishers and consumers. Their technology will help Spotify accelerate its entrance into the audiobooks market. Additionally, we announced the acquisition of Sonantic, a dynamic Al voice platform that creates voices from text. This acquisition, which closed on July 11, 2022, will allow us to provide new unique experiences for our users and engage users in new and more personalized ways. Spotify SONANTIC FINDAWAY 18#19Spotify Live Spotify Live, formerly known as Spotify Greenroom, allows for fans and creators to connect on a deeper and more scaled level through live listening in the Spotify ecosystem. Spotify Live can now be found both as the stand-alone app and as a livestream function in the Spotify alongside music and podcasts. Listeners will be able to tune in to live programming on Spotify via the creator's podcast or artist page, and if they want to participate in the chat or join the host onstage, they participate via the Spotify Live app to do so. Spotify the BILL- SIMMONS PODCAST Follow A HBO and The Ringer's Bill Simmons hosts the most downloaded sports podcast of all time with a more Sports Live now Bill Simmons Podcast The Ringer ALIVE Bil Simmone Tom Hank Discussing Tom Hanks's Top-Three Tom Hanks Movies Simmons talks with Award winning actor Tam Hanks ranks and discuss his own to the T All episodes Q Search IN Larry The Bill Simmons Podcast I've 48 the BILL SIMMONS PODCAST PRESENTED BY ANDEL Discussing Tom Hanks's T... Bill Simmons. Tom Hanks Join in on Spotify Live Stop listening ***** R 9:41 the BILL SIMMONS Follow HBO and The Ringer's Bill Simmons hosts the most downloaded sports podcast of all time, with a more Live now Bill Simmons Podcast The Ringer n Home Culture Sports UVE Bill Simmons Tom Hanks Discussing Tom Hanks's Top-Three Tom Hanks Movies Bil Simmons talks with Award-winning actor Tom Hanks ranks and discuss his own top three Tom Ding Tom He's Th CO X Q IN 19#20OUTLOOK 20#21Outlook for Q3'22 The following forward-looking statements reflect Spotify's expectations for Q3 2022 as of July 27, 2022 and are subject to substantial uncertainty. Total MAUS Total Premium Subscribers Total Revenue Gross Margin Operating (Loss)/Income Spotify 450 million 194 million €3.0 billion 25.2% €(218) million Implies the addition of approximately 17 million net new MAUS in the quarter Implies the addition of approximately 6 million net new subscribers in the quarter Assumes approximately 670 bps tailwind to growth Y/Y due to favorability in foreign exchange rates Reflects the continuing benefit from Marketplace and favorable revenue mix shift to podcasts, offset by investments in non-music content and product enhancement initiatives Inclusive of the Operating Loss is approximately a €78 million impact to Operating Expenses due to Y/Y unfavorability in foreign exchange rates 21#22Webcast 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 #SpotifyEarningsQ222. Participants also may join using the listen-only conference line by registering through the following site: https://event.on24.com/wcc/r/3847843/20374FC84646F084E4DED3CAAE21784C 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, Adjusted gross margin, 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, Adjusted gross margin, 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, Gross margin, 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; our emphasis on innovation and 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 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; the impact of the COVID-19 pandemic and other public health crises; 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 and ownership thereof embodied in sound recordings 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 user data security; 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; our ability to achieve our net zero emissions target or make progress in other environmental, social, and governance initiatives; payment-related risks; our dependence on key personnel and ability to attract, retain, and motivate highly skilled employees; our ability to access to capital to support growth; risks relating to currency exchange rate fluctuations and foreign exchange controls; the impact of economic, social, or political conditions, such as the current conflict between Russia and Ukraine; 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 Exchangeable Notes; 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 filed reports for our interim results on Form 6-K. 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 22#23FINANCIAL STATEMENTS 23#24Trending Charts MAUS, Ad-Supported Users, Premium Subscribers & Revenue By Segment 500 400 300 200 100 0 Q3'19 Spotify Q4'19 Q1'20 Q2'20 1 IZZO Monthly Active Users (M) Q2'22 500 400 300 200 100 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Ad-Supported Users (M) Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Premium Subscribers (M) Q2'22 * 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 €0 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Ad-Supported Revenue, LTM* (€M) Q4'20 Q4'21 Q1'22 Q2'22 Premium Revenue, LTM" (EM) 24#25Trending Charts Gross Profit By Segment, Gross Margin By Segment & Free Cash Flow €3,000 €2,000 €1,000 €0 Q3'19 Q4'19 Spotify Q1'20 Q2¹20 Q3'20 Q4'20 Ad-Supported Gross Profit, LTM" (EM) Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Premium Gross Profit, LTM* (EM) 40.0% 30.0% 20.0% 10.0% 0.0% I Q3'19 I Q4'19 Q1'20 I Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Ad-Supported Gross Margin, LTM* Q3'21 Premium Gross Margin, LTM* Q4'21 Q1'22 Q2'22 Total Gross Margin, LTM* * Last Twelve Months (LTM) represents annual performance covering the preceding 12 months relative to the last day of the quarter. €500 €400 €300 €200 €100 €0 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Free Cash Flow, LTM* (EM) Q4'21 Q1'22 Q2'22 25#26Consolidated 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 expense Net (loss)/income attributable to owners of the parent (Loss)/earnings per share attributable to owners of the parent Basic Diluted Weighted-average ordinary shares outstanding Basic Diluted June 30, 2022 2,864 2,160 704 336 391 171 898 (194) 118 (14) 104 (90) 35 (125) (0.65) (0.85) 192,948,032 195,859,532 Three months ended March 31, 2022 2,661 1,990 671 250 296 131 677 (6) 175 (14) 161 155 24 131 0.68 0.21 192,476,022 197,077,256 June 30, 2021 2,331 1,668 663 255 279 117 651 12 21 (25) (4) 8 28 (20) (0.10) (0.19) 191,172,946 194,084,446 Six months ended June 30, 2022 5,525 4,150 1,375 586 687 302 1,575 (200) 293 (28) 265 65 59 6 0.03 (0.64) 192,713,331 195,624,831 June 30, 2021 4,478 3,267 1,211 451 515 219 1,185 26 125 (56) 69 95 92 3 0.02 (0.44) 190,870,850 193,051,280 26#27Consolidated 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 June 30, 2022 445 373 1,111 126 720 84 7 2,866 613 4 782 2,786 337 4,522 7,388 4,789 (262) 988 (3,214) 2,301 1,127 592 29 4 1 1,753 825 7 489 1,951 39 23 3,334 5,087 7,388 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 27#28Consolidated statement of cash flows (Unaudited) (in € millions) Operating activities Net (loss)/income Adjustments to reconcile net (loss)/income 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 expense Other Changes in working capital: (Increase)/decrease in trade receivables and other assets Increase/(decrease) in trade and other liabilities Increase in deferred revenue Increase/(decrease) in provisions nterest paid on liabilities Interest received Income tax paid Net cash flows 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 Change in restricted cash Other Net cash flows used in 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 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 gains/(losses) on cash and cash equivalents Cash and cash equivalents at period end June 30, 2022 (125) 29 11 105 16 (118) 14 35 (5) (68) 138 10 14 (13) 4 (8) 39 (114) (5) (78) 141 3 (4) (57) (10) (10) (20) (38) 2,721 103 2,786 Three months ended March 31, 2022 131 27 10 68 (175) 14 24 4 59 (103) 6 (3) (13) 1 (13) 37 (85) (10) (133) 78 (5) (1) (156) (10) 2 43 (11) 22 (97) 2,744 74 2,721 June 30, 2021 (20) 23 8 68 (21) 25 28 3 (95) 30 17 (13) 2 (1) 54 (42) (20) (109) 134 (2) (39) (8) 26 (12) 6 21 2,442 (23) 2,440 Six months ended June 30, 2022 June 30, 2021 6 56 21 173 16 (293) 28 59 (1) (9) 35 16 11 (26) 5 (21) 76 (199) (15) (211) 219 (5) (213) (20) 2 43 (21) 2 (135) 2,744 177 2,786 3 45 16 116 (125) 56 92 5 (80) (37) 54 (1) (24) 2 (3) 119 (101) (44) (224) 224 (8) (153) (16) 77 1,223 (28) 1,256 1,222 1,151 67 2,440 28#29Calculation of basic and diluted (loss)/earnings per share (Unaudited) (in € millions, except share and per share data) Basic (loss)/earnings per share Net (loss)/income attributable to owners of the parent Share used in computation: Weighted-average ordinary shares outstanding Basic (loss)/earnings per share attributable to owners of the parent Diluted (loss)/earnings per share Net (loss)/income attributable to owners of the parent Fair value gains on dilutive warrants Fair value gains on dilutive Exchangeable Notes Net (loss)/income used in the computation of diluted (loss)/earnings per share Shares used in computation: Weighted-average ordinary shares outstanding Warrants Exchangeable Notes Stock options Restricted stock units Other contingently issuable shares Diluted weighted-average ordinary shares Diluted (loss)/earnings per share attributable to owners of the parent June 30, 2022 (125) 192,948,032 (0.65) (125) (41) (166) 192,948,032 2,911,500 195,859,532 (0.85) Three months ended March 31, 2022 131 192,476,022 0.68 131 (90) 41 192,476,022 2,911,500 1,055,820 562,670 71,244 197,077,256 0.21 June 30, 2021 (20) 191,172,946 (0.10) (20) (17) (37) 191,172,946 2,911,500 194,084,446 (0.19) Six months ended June 30, 2022 6 192,713,331 0.03 6 (131) (125) 192,713,331 2,911,500 195,624,831 (0.64) June 30, 2021 3 190,870,850 0.02 3 (21) (66) (84) 190,870,850 260,760 1,919,670 193,051,280 (0.44) 29#30Reconciliation 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 June 30, 2022 2,864 191 2,673 23% 15% 2,504 153 2,351 22% 14% 360 38 322 31% 17% June 30, 2021 2,331 2,056 275 Six months ended June 30, 2022 5,525 292 5,233 23% 17% 4,883 236 4,647 22% 17% 642 56 586 31% 19% June 30, 2021 4,478 3,987 491 30#31Reconciliation of IFRS to non-IFRS results Free Cash Flow (Unaudited) (in € millions) 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 December 31, 2018 Free Cash Flow (Unaudited) (in € millions) 150 (65) (1) 84 Net cash flows from operating activities Capital expenditures Change in restricted cash Free Cash Flow March 31, 2019 209 (37) 1 173 June 30, September December March 31, 30, 2019 31, 2019 2020 2019 90 (40) 50 September 30, 2019 520 (168) 3 355 71 (26) 3 48 December 31, 2019 573 (135) 2 440 203 (32) (2 169 March 31, 2020 355 (110) 1 246 (9) (12) (21) June 30, 2020 Three months ended September December 30, 2020 31, 2020 June 30, 2020 304 (84) 3 223 39 (14) 2 27 September 30, 2020 355 (75) (2) 278 122 (17) (2) 103 107 (35) 2 74 259 (78) 2 183 March 31, 2021 Last twelve months ended December March 31, 31, 2020 2021 333 (90) 2 245 65 (24) 41 June 30, 2021 June 30, 2021 348 (96) 252 54 (20) 34 September 30, 2021 September 30, 2021 June 30, 2022 123 (25) 1 99 Six months ended 349 (104) 3 248 76 (15) (2) 59 December 31, 2021 119 (16) 103 December 31, 2021 361 (85) 1 277 June 30, 2021 March 31, 2022 37 (10) (5) 22 March 31, 2022 333 (71) (4) 258 119 (44) 75 June 30, 2022 39 (5) 3 37 June 30, 2022 318 (56) (1) 261 31#32Reconciliation of IFRS to non-IFRS results Adjusted gross margin (Unaudited) (in € millions, except percentages) IFRS revenue IFRS cost of revenue IFRS gross profit IFRS gross margin Adjustments: Less: changes in prior period estimates for rights holder liabilities Add: Car Thing charge Total adjustments Adjusted gross profit (non-IFRS) Adjusted gross margin (non-IFRS) Three months ended June 30, 2022 Premium 2,504 1,804 700 28.0 % (11) 31 20 720 28.8 % June 30, 2021 2,056 1,423 633 30.8 % (42) (42) 591 28.7 % Three months ended June 30, 2022 Ad-Supported 360 356 4 1.1 % June 30, 2021 4 1.1 % 275 245 30 10.9 % (3) (3) 27 9.8 % Three months ended June 30, 2022 Consolidated 2,864 2,160 704 24.6 % June 30, 2021 (11) 31 20 724 25.3% 2,331 1,668 663 28.4 % (45) (45) 618 26.5 % 32#33Reconciliation 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 June 30, 2022 898 63 835 38% 28 % Three months ended June 30, 2022 32 % 25 % 336 18 318 June 30, 2022 Three months ended 391 29 362 40 % 30 % June 30, 2021 June 30, 2022 June 30, 2021 171 16 155 46 % 32 % Three months ended June 30, 2021 June 30, 2021 651 255 279 117 33#34APPENDIX 34#35Supplement to Financial Statements MAUS and Subscriber reconciliation for Russia exit and March service outage Spotify ADJUSTED USERS AND SUBSCRIBERS Total Monthly Active Users ("MAUS") Total MAUS - Russia Only Total MAUS - Service Outage Total MAUS - Adjusted Q/Q Net Additions Ad-Supported MAUS Ad-Supported MAUS - Russia Only Ad-Supported MAUS - Service Outage Ad-Supported MAUS - Adjusted Q/Q Net Additions Premium Subscribers Premium Subscribers - Russia Only Premium Subscribers - Adjusted Q/Q Net Additions Q1 2022 422 ICO 414 252 IW Cr 5 3 244 182 1 181 Q2 2022 433 11 433 19 256 - 256 11 188 = 188 7 35#36Spotify