Spotify swings to a profit as subscribers top estimates

Dow Jones
02-04

MW Spotify swings to a profit as subscribers top estimates

By Steve Gelsi

User growth of 12% powers revenue past estimates

Spotify Technology S.A. reported a fourth-quarter profit as the music streaming service's monthly active users climbed by double-digits over the year-ago period, sending shares of the company up sharply higher in premarket trading.

Spotify (SPOT) said it expects to add 3 million net new monthly active users (MAUs) to 678 million by the end of the first quarter. That's a little bit above the FactSet consensus estimate of 677 million.

Spotify ended the fourth quarter with about 675 million monthly active users, up 12% from the year-ago period and ahead of the previous quarter by 5%.

Spotify's monthly active user figure of 675 million also beat the Wall Street analyst consensus estimate of 664 million.

Spotify also swung to a profit of EUR1.76 a share from a loss of EUR0.36 in the year-ago quarter. The company was expected to earn EUR1.99 a share.

The company said its fourth-quarter revenue rose to EUR4.24 billion, ahead of the FactSet consensus estimate of EUR 4.15 billion.

Looking ahead, Spotify projected first-quarter revenue of EUR4.2 billion, slightly below the analyst estimate of just under EUR4.3 billion.

Spotify's stock was up 8.8% in premarket trading.

(This is a developing news story with updates to come.)

-Steve Gelsi

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(END) Dow Jones Newswires

February 04, 2025 07:25 ET (12:25 GMT)

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