Spotify shares surge on strong profit forecast, exceeding expectations for fourth quarter

From CNBC: 2024-11-12 17:54:40

Spotify shares surged in after-hours trading as the company issued a profit forecast for the fourth quarter that beat estimates. Earnings per share were 1.45 euros vs. 1.72 euros expected, with revenue at 3.99 billion euros vs. 4.02 billion euros expected. Monthly active users reached 640 million, exceeding expectations.

Although third-quarter earnings fell short, investors were optimistic about Spotify’s fourth-quarter guidance. The company anticipated an operating income of 481 million euros, surpassing analyst estimates. Monthly active users are projected to increase to 665 million, higher than the expected 659.3 million.

Revenue guidance for the quarter was slightly below estimates at 4.1 billion euros, compared to the average analyst estimate of 4.26 billion euros. Spotify Premium subscribers grew by 12% to 252 million year over year, slightly ahead of expectations. The stock rose 8% to $452.35 after the report.

Spotify’s stock has more than doubled in value this year, reaching $452.35 after a 2.2% increase in regular trading. The company’s success is attributed to the growth in Spotify Premium subscribers and exceeding revenue expectations for the fourth quarter. Investors are optimistic about the company’s future prospects.



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