Music streaming giant Spotify increased the number of monthly active users and premium subscribers last quarter, beating expectations on both those and other metrics as the stock rose more than 9% after the numbers before stabilizing slightly to just over $450.
The company has become a darling of Wall Street recently with a number of analysts recently raising estimates and share price targets ahead of the quarterly numbers.
Revenue was consistent and grew 21% for the three months ended September to €4 billion. Premium revenue rose 21%; ad-supported revenue grew 6%.
MAUs, or average monthly users, saw net additions rise 11% to 640 million, beating guidance by 1 million.
Premium subscribers rose 12% year-over-year to 252 million, reflecting year-over-year and quarter-over-quarter growth across all regions.
Operating income came in at €454 million. Free cash flow jumped to €711 million. The company is on track for full-year profitability in the fourth quarter.
“We have never been in a stronger position, thanks to the outstanding execution of our team. I am extremely proud of the way we delivered and the progress we made,” said CEO Daniel Ek: “I’m extremely proud of the way we’ve delivered and the progress we’ve made,” said CEO Daniel Eck. “We are where we set out to be – if not a little further – and on a steady path toward achieving our long-term goals. This relentless pursuit of innovation and commitment to growth positions us to deliver the most valuable user experience in the industry, while reinforcing the core strengths that make Spotify unique. I’m very excited about what lies ahead.”
CEO Daniel Ek will discuss the numbers with analysts at 5 p.m. ET.
Source