On December 4, 2023, the Spotify logo will appear on a screen on the floor of the New York Stock Exchange.
Brendan McDiarmid | Reuters
spotify Shares rose in after-hours trading Tuesday after the music streaming company reported better-than-expected fourth-quarter profit guidance.
Here’s how the company performed compared to analyst expectations:
Earnings per share: €1.45 vs. LSEG expected €1.72 Revenue: €3.99 billion vs. LSEG expected €4.02 billion Monthly active users (MAU): 640 million vs. StreetAccount expected €639 million
The Swedish company’s third-quarter profit and revenue fell short of expectations, but investors instead focused on its outlook for the current period.
Spotify said it expects fourth-quarter operating profit of 481 million euros, beating analysts’ average estimate of 432.7 million euros, according to Street Accounts. Analysts expect MAUs to rise to 665 million, based on StreetAccount estimates.
Still, the earnings outlook was lower than expected. LSEG said the company expects sales to reach 4.1 billion euros, below the average analyst estimate of 4.26 billion euros.
The number of subscribers to Spotify Premium, an ad-free membership service that allows users to choose unlimited songs, rose 12% from the previous year to 252 million, slightly exceeding expectations.
Spotify’s stock price rose about 8% on the news and was at $452.35 after rising 2.2% in regular trading. The stock has more than doubled in value this year.
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