Spotify Technology SA exceeded estimates of Wall Street for third-quarter revenue, as it reported a 19% increase in paid subscribers for its premium service driven by demand in Europe and North America.
The Spotify premium subscribers, which account for the majority of its revenue, reached $ 172 million, beating analysts’ expectations of $ 171.7 million.
The music streaming company’s total monthly active users increased 19% to 381 million.
Spotify You make your profit with subscriptions and showing ads to non-paying members. Ad revenue, which fell at the height of the Covid-19 pandemic, climbed 75% to 323 million euros (about $ 376 million), and the firm plans more hires to boost ad sales.
Total revenue increased 27% to 2.5 billion euros, surpassing the 2.45 billion euros expected by analysts, according to IBES data from Refinitiv.
About the 40% of Spotify’s premium subscribers are in Europe, with 29% in the United States.
The company has also been investing heavily in its podcast business to compete with Apple’s and in April it launched a paid subscription platform for podcasters in the United States.
Spotify It currently has 3.2 million podcasts on its platform, up from 2.9 million at the end of the second quarter.
Spotify forecast fourth-quarter revenue of € 2.54 billion to € 2.68 billion and € 177 million to € 181 million suscriptores premium. Analysts on average expect revenues of € 2.6 billion and 180 million subscribers.
The company reported a net profit of € 2 million compared to a loss of € 101 million a year earlier.