Spotify reported strong Q3 results with revenue climbing 12% year over year but issued weak guidance for the current quarter. Premium subscribers increased by 12% to 281 million. CEO Daniel Ek stated the business is healthy and forecasts fourth-quarter revenue of 4.5 billion euros. Ek will step down in January.

Spotify raised subscription prices in August and introduced enhancements to the mobile free tier in September. The company is leveraging artificial intelligence, launching on ChatGPT for personalized recommendations. Spotify also partnered with major music agencies to develop AI products. Backlash ensued after CEO Ek invested in a defense technology startup in June.

Read more at CNBC: Spotify tops third-quarter estimates, issues mixed guidance