Spotify Q3 Earnings: Subscriber Growth Beats Expectations, Revenue Misses; Stock Up

Nov 12, 2024, 09:12 PM

Spotify Technology SA reported its third-quarter earnings, surpassing expectations for subscriber growth but falling short on revenue and earnings per share. The company's revenue increased by 19% year-over-year to €3.99 billion, slightly below the estimated €4.02 billion. Earnings per share were €1.45, missing the consensus estimate of €1.72. Despite these misses, Spotify's gross margin improved to 31.1%, up from 29.2% in the prior quarter, reflecting better profitability. The company added 6 million paying subscribers, reaching a total of 252 million premium subscribers, which was above the estimate of 250 million. Monthly active users (MAUs) grew by 11% to 640 million, in line with expectations. Spotify's stock rose by 7% to 9.68% after hours, setting new all-time highs in response to the earnings report. The company also introduced Christian Luiga as the new CFO, and despite a slight miss on ARPU, Spotify's cash generation continued to shine.