Spotify climbs 10.1% to $461.91 on the New York market and is at the highest level in its stock market history. The audio streaming giant announced that it expects an operating profit in the fourth quarter higher than Wall Street’s expectations: 481 million euros compared to the 445.7 million euros targeted. It is also banking on cost reductions and strong growth in subscribers during the crucial holiday season.
In the third quarter, the Swedish streaming giant listed on Wall Street reported earnings per share of $1.54, compared to a consensus of $1.63.
The gross margin increased by 40% to 1.24 billion euros, or a margin rate of 31.1% compared to 26.4% a year earlier.
Revenue, almost in line with expectations, totaled $4.38 billion, up 19%.
Furthermore, the number of premium subscribers increased by 12% to 252 million, while the number of monthly active users increased by 11% to 640 million, higher than expectations.
“We have outperformed on all key indicators, which brings us closer to a full year of profitability”, underlines the group of Swedish origin, thus saying that it is “on the right track to achieve its long-term objectives”.
For Latest Updates Follow us on Google News
