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SUMMARY
Last week we laid out our Bull & Bear cases for SPOT, with the distinction centering mostly on duration. On the positive, we believe SPOT has two clear competitive advantages vs. its peers, and ample room for subscriber/ARPU growth despite both elevated churn and market share. SPOT is also in the early inning of ramping its ad business, which still has considerable runway relative to MAU engagement. Collectively between the two lines, there may be a pathway toward profitability depending on future op-ex investments. On the negative, SPOT is a distributor in a largely commoditized space, and we suspect it will remain hostage to its three main suppliers. The progression of that relationship will remain an ongoing risk to SPOT's profitability and competitive positioning. On the margin, we are leaning more bullish than bearish for the time being, but we are still assessing the near-term setup.
Let us know if you have any questions or would like to discuss in more detail.