Spotify Stock Pops On Quarterly Numbers As Music Streamer Adds Premium Subscribers, Lowers Costs
deadline.comShares of giant music streamer Spotify have jumped 13% in pre-market trading as the company grew premium, subscribers, revenue and profit for the second quarter ended in June.
Monthly active users rose 14% to 626 million and expanded across all regions, although a bit below Wall Street’s guidance. But subscribers jumped 12% to 246 million, beating estimates and driving a 20% just in revenue to 3.8 billion euros driven by the subscriber gains and increases in ARPU (average revenue per user).
Ad-supported revenue grew 13%. Layoffs and restructuring last year helped keep the company in the black. Spotify reported a profit of €274 million (about $298 million) driven in part by higher sales and lower marketing but also by “efficiency actions” last year meaning layoffs and restructuring.
Music and podcast profitability were offset in part by audiobooks costs. Operating Income was €266 million in At the end of Q2, our workforce consisted of 7,372 full-time employees globally “It’s an exciting time at Spotify.
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