Shares of Spotify Technology (SPOT) are up 8% after the audio streaming service reported fourth-quarter financial results that beat Wall Street forecasts.
The Swedish company announced a Q4 loss of $0.36 U.S. per share on revenue of $3.94 billion U.S.
The profit was better than a loss of $0.40 U.S. that was expected on Wall Street. Analysts had forecast revenue of $3.99 billion U.S. for the company.
Monthly active users on Spotify’s platform also exceeded expectations, growing 5% from the previous quarter to 602 million. Analysts had 601 million users penciled in for the company.
The number of subscribers to Spotify’s premium service rose 4% in Q4 2023 to 236 million, which was also above Wall Street forecasts of 235 million.
Spotify said that it expects monthly active users to reach 618 million worldwide in the current first quarter of 2024, with premium subscribers hitting 239 million.
The company’s gross margin rose to 26.7% in Q4, up 1.4 percentage points year-over-year, which Spotify said reflected improved profitability in both its podcasts and music streaming.
Prior to today (Feb. 6), Spotify’s stock had gained 82% to trade at $223.25 U.S. per share.
