Spotify shares pop 10% on strong user growth

Spotify shares popped as a lot as 10% Tuesday after the corporate reported fourth-quarter earnings that beat analysts’ expectations for income and confirmed sturdy person development.

Here’s how the corporate did:

• Loss per share: Loss of 1.40 euros ($1.52) vs. an estimated lack of 1.27 euros as anticipated by analysts, in line with Refinitiv
• Revenue: 3.17 billion euros vs. 3.16 billion euros anticipated by analysts, in line with Refinitiv

Spotify reported 489 million month-to-month energetic customers for the quarter, up 20% 12 months over 12 months. There had been 33 million internet additions to month-to-month energetic customers in the course of the quarter, marking a file excessive for the corporate. Spotify additionally reported 205 million paid subscribers, up 14% from a 12 months in the past.

In its third-quarter report, the corporate stated it anticipated so as to add roughly 23 million new month-to-month energetic customers in This fall, bringing its whole to 479 million. It had additionally anticipated its income to extend to three.2 billion euros and to submit 202 million paid subscribers within the quarter.

Spotify is continuous to spend money on promoting, and its ad-supported income grew 14% 12 months over 12 months and accounted for 14% of whole income. The firm stated development was pushed by podcasting.

Earlier this month, Spotify introduced plans to chop 6% of its world workforce because it contends with a depressing financial surroundings that has triggered shoppers and advertisers to restrict their spending. The cuts impacted about 600 staff.

CEO Daniel Ek wrote a observe to staff, which was posted publicly on the corporate’s web site, and stated he takes “full accountability for the moves that got us here today.”

“In hindsight, I was too ambitious in investing ahead of our revenue growth,” he stated.