Today, Spotify announced better-than-expected third-quarter results, exceeding analyst forecasts in revenue, along with growth in its user base.
In Q3, the streaming giant reported revenue of 4.27 billion euros, exceeding the expected 4.23 billion euros and increasing from 3.99 billion euros a year earlier.
Adjusted earnings per share were 3.28 euros, significantly exceeding the expected 1.98 euros and substantially higher than last year’s 1.45 euros.
The company stated, “Our business delivered strong results in Q3, as all KPIs met or exceeded guidance to deliver strong Free Cash Flow.”
In the third quarter, Spotify’s monthly active users (MAUs) rose to 713 million, surpassing the expected 711 million. Premium subscribers reached 281 million, matching forecasts and increasing from 252 million a year prior.
Ad-supported users increased to 446 million, up from 402 million last year.
“Overall, we are very pleased with our performance heading into year-end and view the business as well positioned to deliver growth and improving margins in 2025 as we reinvest to support our long-term potential,” the company reported.
Moving forward, Spotify projects its fourth-quarter revenue at 4.5 billion euros, just below estimates of 4.57 billion euros, due to currency headwinds.
Spotify’s stock rose by 3% before the market opened, reflecting a 70% increase over the past year.
Read our exclusive interview with Spotify Founder and CEO, Daniel Ek
By CEO NA Editorial Staff
