Spotify Stock Surges 10% Amid Strong Q4 Earnings

Music streaming giant Spotify’s shares surged as much as 10% today after the company reported Q4 earnings that beat analysts’ revenue estimates with strong user growth.

Spotify

According to CNBC News, Spotify reported 489 million monthly active users for the quarter, up 20% year over year.

There were 33 million net additions to monthly active users during the quarter, marking a record high for the company. Spotify also reported 205 million paid subscribers, up 14% from a year ago.

Spotify says it is continuing to invest in advertising, and its ad-supported revenue grew 14% year over year and accounted for 14% of total revenue.

In its third-quarter report, the company said it expected to add approximately 23 million new monthly active users in Q4, bringing its total to 479 million. It had also expected its revenue to increase to 3.2 billion euros and to post 202 million paid subscribers in the quarter.

The company said growth was driven by podcasting.

Spotify announced its plans to cut 6% of its global workforce last week, as it contends with a gloomy economic environment.

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