Deezer (DEEZR) Q1 2025 TU earnings summary

Executive summary

• Q1 2025 revenue reached €134 million, up 1.1% year-over-year and 2.5% at constant currency, with strong performance in France and growth in the Direct segment subscriber base.

• Total subscribers stood at 9.4 million, with Direct France up 6.3% like-for-like and Partnerships down due to expected promo cohort conversions.

• New strategic cycle launched, introducing innovative features for greater personalization and universal sharing, aiming to deepen engagement and drive future growth.

Financial highlights

• Revenue in France increased by 4.5% year-over-year, while Rest of World declined by 3.4%.

• Direct revenue rose 0.6% to €86.6 million; Partnerships revenue fell 9.4% to €39.2 million; Other revenue surged 155% to €8.3 million.

• ARPU for Direct was €5.5/month (down 1.2%), and for Partnerships €3.1/month (up 2.6%).

Outlook and guidance

• FY25 revenue guidance confirmed, with expectations for flat to slightly declining revenue after a strong FY24.

• Positive adjusted EBITDA targeted for the first time in 2025; positive free cash flow expected for the second consecutive year.