Spotify's Financial Results Show Record Growth in Premium Subscribers

Tuesday, 23 April 2024, 14:38

Spotify Technologies (NYSE: SPOT) reported a strong first quarter in 2024, with a 13% stock surge driven by a significant increase in premium subscribers. The company's revenue rose by 20% to 3.6 billion euros, and its net profit was boosted by gross margin improvement to nearly 28%. Encouraging guidance for the upcoming quarter suggests continued growth potential for Spotify's stock value.
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Spotify's Financial Results Show Record Growth in Premium Subscribers

Spotify's Growth Leads to a Profit

The audio-streaming platform exceeded expectations with a 19% year-over-year growth in monthly active users and a 14% increase in premium subscribers.

Key Financials:

  • Revenue: Revenue grew by 20% to 3.6 billion euros.
  • Gross Margin: Gross margin improved from 25% to nearly 28%.
  • Net Profit: Strong revenue growth and margin improvement led to a net profit.

Spotify's strong financial performance is reflected in its rising stock value.

More Record Results Expected

Spotify's outlook for the next quarter includes adding six million premium subscribers and targeting $250 million in operating income, setting a new company record. Despite evaluation concerns, the company's growth prospects remain promising.

Should you invest $1,000 in Spotify Technology right now?


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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