On December 4, 2023, the Spotify logo will appear on a screen on the floor of the New York Stock Exchange.
Brendan McDiarmid | Reuters
spotify Shares rose in after-hours trading on Tuesday after the Swedish music streaming company released a better-than-expected fourth-quarter profit forecast.
Here’s how the company performed compared to analyst expectations:
Earnings per share: €1.45 vs. LSEG expected €1.72 Revenue: €3.99 billion vs. LSEG expected €4.02 billion Monthly active users (MAU): 640 million vs. StreetAccount expected €639 million
Although the company’s third-quarter profits and sales fell short of expectations, investors instead focused on its outlook for the current period.
Spotify said it expects fourth-quarter operating profit of 481 million euros, beating analysts’ average estimate of 432.7 million euros, according to Street Accounts. Analysts expect MAUs to rise to 665 million, based on StreetAccount estimates.
Still, the earnings outlook was lower than expected. LSEG said the company expects sales to reach 4.1 billion euros, below the average analyst estimate of 4.26 billion euros.
The number of subscribers to Spotify Premium, an ad-free membership service that allows users to choose unlimited songs, rose 12% from the previous year to 252 million, slightly exceeding expectations.
Spotify stock rose about 8% to $452.35 after rising 2.2% in regular trading after the news. The stock has more than doubled in value this year.
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