What does SPOT's EPS surprise history tell investors?

**Spotify's EPS surprise history indicates a company that has consistently exceeded market expectations**, which is a positive signal for investors. Here's a detailed analysis:

1. **Consistent Overperformance**: Spotify's EPS has exceeded estimates in multiple quarters, as evidenced by the company's reported EPS of €0.97 ($1.04) in the first quarter, which was well above the loss of EUR1.16 ($1.24) reported in the same quarter last year. This trend of surpassing expectations suggests a strong financial performance and management's ability to execute effectively.

2. **Growth in Revenue and User Base**: The increase in revenue by 19.5% to EUR3.64 billion ($3.89 billion) and a 22.4% rise in ad-supported MAUs to 388 million are key drivers behind Spotify's strong earnings. The growth in premium subscribers by 13.8% to 239 million also contributes to the company's financial strength.
3. **Future Outlook**: Spotify anticipates a continued upward trajectory in MAUs and premium subscribers, with expectations of 631 million MAUs and 245 million premium subscribers in the current quarter. This optimistic forecast, coupled with a slight increase in revenue expectations, suggests confidence in sustained growth.
4. **Institutional Confidence**: Institutional investors have shown significant interest and confidence in Spotify, with several hedge funds and investment firms increasing their stakes in the company. This institutional confidence can be a positive indicator for investors, as it reflects a belief in Spotify's long-term potential and financial health.

In conclusion, Spotify's EPS surprise history, coupled with strong revenue growth, a robust user base, and positive future projections, presents a compelling case for investors. The company's ability to consistently exceed expectations and the confidence of institutional investors suggest that Spotify is a strong candidate for investment.