Spotify (NYSE:SPOT) shares popped Tuesday after the company reported fourth-quarter earnings that beat analysts’ expectations for revenue and showed strong user growth.
In the quarter, the company lost 1.40 euros per share vs. an estimated loss of 1.27 euros as expected by analysts, according to Refinitiv
Revenue was 3.17 billion euros vs. 3.16 billion expected by analysts, according to Refinitiv
Spotify reported 489 million monthly active users for the quarter, up 20% year over year. There were 33 million net additions to monthly active users during the quarter, marking a record high for the company. Spotify also reported 205 million paid subscribers, up 14% from a year ago.
In its third-quarter report, Spotify said it expected to add approximately 23 million new monthly active users in Q4, bringing its total to 479 million. It had also expected its revenue to increase to 3.2 billion euros and to post 202 million paid subscribers in the quarter.
Spotify is continuing to invest in advertising, and its ad-supported revenue grew 14% year over year and accounted for 14% of total revenue. The company said growth was driven by podcasting.
Earlier this month, Spotify announced plans to cut 6% of its global workforce as it contends with a gloomy economic environment that has caused consumers and advertisers to limit their spending. The cuts impacted about 600 employees.
SPOT shares galloped $8.96, or 9%, to $108.96.
