:max_bytes(150000):strip_icc()/GettyImages-1461363374-b2c090198ca544ca8f8f5c3999c06688.jpg "Spotify Stock Soars as Monthly Active Users Jump")
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Key Takeaways
- Spotify Technology reported a first-quarter profit and better-than-expected sales as it added users.
- The streaming audio provider increased the number of total Monthly Active Users (MAUs), ad-supported MAUs, and premium subscribers.
- Spotify expects higher MAUs and premium subscribers in the current quarter.
Spotify Technology (SPOT) shares skyrocketed in intraday trading Tuesday after the streaming audio provider posted a quarterly profit and strong sales on a big jump in the number of users.
The company reported first-quarter earnings per share (EPS) of 0.97 euro ($1.04), well above estimates, after registering a loss of EUR1.16 ($1.24) a year ago. Revenue increased 19.5% to EUR3.64 billion ($3.89 billion), also more than expected.
Total Monthly Active Users (MAUs) were up 19.4% to 615 million, with ad-supported MAUs climbing 22.4% to 388 million. The number of premium subscribers came in at 239 million, a 13.8% gain. Higher prices helped lift average revenue per user for its premium service 5% to EUR4.55 ($4.87).
The company anticipates current-quarter MAUs and premium subscribers will rise to 631 million and 245 million, respectively. It sees revenue of EUR3.8 billion ($4.07), slightly above analysts’ expectations.
Shares of Spotify Technology soared 16.6% to $317.41 as of 1 p.m. ET Tuesday, a level not seen in more than three years.
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