People walk out of the Spotify headquarters building in lower Manhattan on January 23, 2023 in New York City.
Eduardo Munoz Alvarez Watch Corbis News Press | Getty Images
Spotify Shares rose as much as 9% early Tuesday after the company reported Fourth quarter earnings Exceeded analyst expectations for earnings and showed strong user growth.
Here’s how the company did:
- share loss: Loss of 1.40 euros ($1.52) for the loss. With a loss of 1.27 euros, as expected by analysts, according to Refinitiv
- he won3.17 billion euros versus 3.17 billion euros analysts expect 3.16 billion euros, according to Refinitiv
Spotify reported 489 million monthly active users for the quarter, up 20% year over year. There were 33 million net monthly active users added during the quarter, which is a record for the company. Spotify also reported 205 million paying subscribers, up 14% from last year.
in that Third Quarter ReportSpotify said it expects to add approximately 23 million new active users per month in the fourth quarter, bringing the total number of users to 479 million. It also expected its revenue to increase to 3.2 billion euros and to record 202 million paying subscribers in the quarter.
Spotify continues to invest in advertising, and its ad-supported revenue grew 14% year-over-year and accounted for 14% of total revenue. The company said the growth was driven by podcasts.
Earlier this month, Spotify announced plans to Cut 6% of its global workforce Because it deals with a grim economic environment that has made consumers and advertisers curb their spending. The cuts affected about 600 employees.
CEO Daniel Ek A Note to employees, which was posted publicly on the company’s website, and said he took “full responsibility for the moves that got us here today.”
“In hindsight, I was too ambitious to invest before our returns grew,” he said.
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