By George Glover
Spotify Technology stock was rising Tuesday after the audio streamer said it had added more subscribers than Wall Street was expecting over the fourth quarter, helping revenue to top estimates.
The stock climbed 12% to $612.59 in early trading. The benchmark S&P 500 index was up 0.1%.
The gains came after Spotify said it had added a record-equaling 11 million net premium subscribers as of Dec. 31, topping the eight million net adds analysts surveyed by FactSet were expecting. It pointed to high user engagement with its annual Wrapped campaign as one factor driving growth.
The Swedish company reported diluted earnings of $1.76 a share, as revenue climbed 16% from a year ago to 4.24 billion euros ($4.38 billion). Analysts were expecting earnings of $1.99 a share on earnings of EUR4.15 billion ($4.28 billion).
The results mean Spotify reported a full-year profit for the first time ever, with price hikes boosting its margins and sizable layoffs from 2023 helping the company to cut costs.
The streamer's guidance also looked strong. Spotify said it was expecting to have 265 million premium subscribers by the end of the current quarter, topping the 263 million analysts had forecast. Its expects to report earnings of EUR4.2 billion for the period, just above Wall Street estimates.
Write to George Glover at george.glover@dowjones.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
February 04, 2025 10:04 ET (15:04 GMT)
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