Spotify Stock Soars as Monthly Active Users Jump

By
Bill McColl
Bill McColl
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Bill McColl has 25+ years of experience as a senior producer and writer for TV, radio, and digital media leading teams of anchors, reporters, and editors in creating news broadcasts, covering some of the most notable news stories of the time.

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Published April 23, 2024
The Spotify company logo is displayed as traders work on the floor of the New York Stock Exchange

Michael M. Santiago / Getty Images

Key Takeaways

  • Spotify Technology reported a first-quarter profit and better-than-expected sales as it added users.
  • The streaming audio provider increased the number of total Monthly Active Users (MAUs), ad-supported MAUs, and premium subscribers.
  • Spotify expects higher MAUs and premium subscribers in the current quarter.

Spotify Technology (SPOT) shares skyrocketed in intraday trading Tuesday after the streaming audio provider posted a quarterly profit and strong sales on a big jump in the number of users.

The company reported first-quarter earnings per share (EPS) of 0.97 euro ($1.04), well above estimates, after registering a loss of EUR1.16 ($1.24) a year ago. Revenue increased 19.5% to EUR3.64 billion ($3.89 billion), also more than expected.

Total Monthly Active Users (MAUs) were up 19.4% to 615 million, with ad-supported MAUs climbing 22.4% to 388 million. The number of premium subscribers came in at 239 million, a 13.8% gain. Higher prices helped lift average revenue per user for its premium service 5% to EUR4.55 ($4.87).

The company anticipates current-quarter MAUs and premium subscribers will rise to 631 million and 245 million, respectively. It sees revenue of EUR3.8 billion ($4.07), slightly above analysts’ expectations.

Shares of Spotify Technology soared 16.6% to $317.41 as of 1 p.m. ET Tuesday, a level not seen in more than three years.

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  1. Spotify Technology. "Q1 2024 Update."

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