Q1 results exceeded expectations, with MAU and revenue growth accelerating. The core drivers are AI feature innovation and free-tier improvements enhancing user stickiness.

MAU reached 761 million (+12% YoY), total revenue €4.5 billion (+14% YoY), gross margin 33% above guidance, Operating Income €715 million exceeded expectations.

On the business front, AI DJ covered 94 million users, Song DNA reached 52 million users in four weeks, demonstrating the effectiveness of AI investments. The ad stack rebuild is complete, with biddable revenue exceeding 30% and growing rapidly. Fitness Hub launched in partnership with Pelton, expanding the content ecosystem. ARPU increased 5.7%, benefiting from pricing and audiobook add-on services.

Q2 guidance: MAU expected 778 million, Premium users 299 million, revenue €4.8 billion (+15%), gross margin 33.1% (up 160 bps YoY). Full-year gross margin and operating margin are expected to improve YoY, but quarterly figures will fluctuate due to investment timing.

Management is highly optimistic about AI product adoption and LTV improvement, but the advertising business still faces near-term pressure, with improvement expected in the second half.