The Spotify logo is displayed on the floor of the New York Stock Exchange on December 4, 2023.
Brendan McDermid | Reuters
Spotify Shares rose in after-hours trading on Tuesday after the Swedish music streaming company issued a better-than-expected fourth-quarter profit forecast.
Here’s how the company performed compared to analysts’ expectations:
- Earnings per share: €1.45 vs LSE forecast of €1.72
- income: 3.99 billion euros, while LSEG expected 4.02 billion euros
- Monthly Active Users (MAU): 640 million versus StreetAccount’s expected 639 million
Although the company’s third-quarter profit and revenue fell short of expectations, investors are instead focusing on guidance for the current period.
According to StreetAccount, Spotify’s fourth-quarter operating income will be 481 million euros, exceeding analysts’ average forecast of 432.7 million euros. According to StreetAccount estimates, the number of monthly active users will increase to 665 million, compared with analysts’ expectations of 659.3 million.
Still, revenue guidance lagged expectations. The company said sales would reach 4.1 billion euros, below analysts’ average estimate of 4.26 billion euros, according to LSEG.
Subscribers to Spotify Premium, the company’s ad-free membership service that allows users to choose unlimited songs, grew 12% year over year to 252 million, slightly above expectations.
After the report was released, Spotify shares rose about 8% to $452.35, and rose 2.2% in regular trading. The stock has more than doubled in value this year.
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