Spotify CEO Daniel Ek sells 250,000 shares of company’s stock worth $57.5 million
The music streaming giant reported strong financial performance in the final quarter of 2023.
Credit: Drew Angerer/Getty Images
Spotify CEO Daniel Ek has sold 250,000 shares of the company’s stock for $57.5 million.
Ek, who is Spotify’s largest shareholder, made the sale last week (7 February). It comes after the company shared strong financial earnings made in the final quarter of 2023.
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As reported by Music Business Worldwide, Spotify’s final quarter filing shows that monthly active users surged by 23 percent year over year to 602 million, exceeding the company’s target by one million. The number of its subscribers also grew by 15 percent YOY to 236 million, also higher by one million against the company’s guidance.
Revenue in Quarter Four rose by 16 percent YOY to $3.99 million, resulting in an operating loss of $80.82 million in Q4 2023 compared to a loss of $248.9 million in Q4 2022.
This recent share sales were executed by DGE Investments Limited, which is solely owned by Ek. Spotify’s share price is up 27.56 percent since the start of the year, and according to the publication, Ek sold his shares at the highest price the stock has seen since late 2021.
In December, it was revealed that Spotify’s Chief Financial Officer (CFO), Paul Vogel, had cashed out 47,859 shares earning him $9.377 million. This occurred shortly after the company announced that 17 percent of its workforce would be laid off. A statement confirmed that Vogel will depart from the company at the end of Q1 in 2024 (31 March) as part of a new phase for Spotify.
More recently, the company teased that it will be introducing “superfan clubs” for its users on the platform: “Thanks to the DMA (Digital Markets Act) we’re looking forward to a future of superfan clubs, alternative app stores, and giving creators the ability to safely download Spotify for Artists or Spotify for Podcasters directly from our site – and that’s just the start,” it said in a statement.
“We will be able to communicate clearly with you in the Spotify app about new products for sale, promotional campaigns, superfan clubs, and upcoming events, including when items like audiobooks are going on sale.”
