Spotify Shares Soar as Company Exceeds Profit Estimates
Strong Guidance for Q4 Propels Music Streaming Giant Forward
Spotify’s shares surged in extended trading on Tuesday, following the release of its third-quarter earnings report. Despite missing estimates for earnings and revenue, investors were buoyed by the company’s optimistic guidance for the fourth quarter.
Beating Estimates: Operating Income and MAUs
Spotify predicted operating income for the fourth quarter would reach €481 million, surpassing the average analyst estimate of €432.7 million. Additionally, the company forecasted Monthly Active Users (MAUs) to increase to 665 million, exceeding expectations of 659.3 million.
Revenue Guidance Falls Short, But Premium Subscribers Rise
While revenue guidance for the fourth quarter came in below estimates at €4.1 billion, Spotify’s Premium subscriber base grew 12% year-over-year to 252 million, slightly ahead of expectations.
Stock Soars as Investors Look to the Future
Spotify’s shares rose approximately 8% in after-hours trading to $452.35, building on a 2.2% gain during regular trading. This marks a significant milestone, as the stock has more than doubled in value this year.
A Bright Future for Music Streaming
As Spotify continues to dominate the music streaming landscape, its strong guidance and growing subscriber base suggest a promising future for the company. With its sights set on breaking global barriers for artists, Spotify is poised to remain a leader in the industry.
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