(Updated - November 1, 2018 8:19 AM EDT)

(Corrects to show amounts in euro)

Spotify (NYSE: SPOT) reported Q3 EPS of EUR0.23, versus (EUR1.84) reported last year. Revenue for the quarter came in at EUR1.35 billion versus the consensus estimate of EUR1.33 billion.

• MAUs grew 28% Y/Y to 191 million at the end of Q3. Growth in our emerging regions of Latin America and Rest of World continues to outpace growth in our more established markets.
• Ad-Supported MAUs totaled 109 million at the end of the quarter, up 20% Y/Y. Earlier this year we began rolling out a new user interface for our Ad-Supported tier of service, the first major revision since our mobile product was introduced in 2014. We expect this new user interface to drive improvements in engagement and retention.
• Premium Subscribers totaled 87 million at the end of Q3, up 40% Y/Y. Growth continues to be healthy across our Family and Student plans, and the strong retention characteristics of this base continue to drive churn lower. In Q3 average monthly churn declined 90 bps Y/Y, as it did in Q2. This quarter we offered to verified Student subscribers in the US our first ever multi-partner bundle consisting of Spotify, Hulu, and Showtime for $4.99 per month. In addition, we expanded our 3-for-99¢ intro offer campaign for our Student plan globally during August and September to line up with the back-to-school season.

GUIDANCE:

Spotify sees Q4 2018 revenue of EUR1.35-1.55 billion.

• Total Monthly Active Users (“MAU”): 199-206 million, up 24-29% Y/Y
• Total Premium Subscribers: 93-96 million, up 30-36% Y/Y
• Total Revenue: €1.35-€1.55 billion, up 18-35% Y/Y. This includes a negative impact of approximately €20 million from foreign exchange rates; excluding this impact, up 20-37% Y/Y
• Gross Margin: 24.0-26.0%, lowered by 50 bps from prior guidance as a result of the impact of Google Home in Q4 (see below)
• Operating Profit/Loss: €15-(€35) million

For earnings history and earnings-related data on Spotify (SPOT) click here.