Spotify (SPOT) Stock Gains on Rising Revenue and 19% Increase in Paid Subscribers
Shares of Spotify (NYSE: SPOT) are up over 1% in pre-open Wednesday after the Sweden-based company reported its Q3 earnings.
Spotify reported a negative EPS of €0.41, better than the negative €0.58 reported a year ago. Revenue for the quarter came in at €2.5 billion, ahead of the €2.45 billion consensus and versus €1.98 billion reported last year. Premium subscribers came in at 172 million, ahead of the analyst consensus of 171.7 million.
Monthly active users (MAUs) soared 19% to 381 million, up from 365 million last quarter. SPOT said it generated a positive Free Cash Flow of €99 million.
“The business performed very well in the quarter. Nearly all of our major metrics finished better than expected, including MAUs, Revenue, Gross Margin, and Operating Income. Subscriber growth was inline and importantly, ARPU growth increased Y/Y. Additionally, we saw another quarter of significant advertising strength and user engagement metrics across many markets showed encouraging signs of growth,” the company said in a statement.
For the current quarter, Spotify maintained its prior guidance and it continues to expect between 400 million to 407 million total MAUs, total premium subscribers 177 million to 181 million, all on revenue of €2.54 billion to €2.68 billion.
Analysts were calling for revenue of €2.62 billion and 180 million subscribers.
Shares of Spotify closed at $252.20 yesterday.