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Spotify (SPOT) shares are jumping around 8% in premarket trading Tuesday, after the Swedish audio streaming giant posted its first full-year profit and quarterly revenue that beat estimates.
“Spotify hit some huge milestones, including our first full year of profitability,” Chief Executive Officer Daniel Ek said in a post on X.
Spotify, which had been cutting costs in recent years, said fourth-quarter revenue jumped 16% year-over-year to 4.24 billion euros ($4.38 billion). That exceeded the 4.16 billion euros analyst consensus from Visible Alpha. The company's net profit of 367 million euros, versus a loss of 70 million euros in the previous year, was, however, below estimates of 407.7 million euros.
Monthly Active Users Reach 675 Million
Still, subscriber numbers soared. Monthly active users during the fourth quarter climbed 12% to 675 million, and premium subscriptions came in at 263 million. The numbers both exceeded forecasts Spotify made of 665 million MAUs and 260 million premium subscribers in the fourth quarter, as well as Visible Alpha’s estimates.
Looking ahead, Spotify forecast revenue of 4.2 billion euros, 678 million MAUs and 265 million premium subscribers in the first quarter of 2025.
Spotify shares have more than doubled in the past year.
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