FX.co ★ Spotify Technology Turns To Profit In Q1; Sees Sequential Growth In Q2; Stock Climbs In Pre-market

Spotify Technology S.A. announced a rise in profits for its first quarter, marking a sharp contrast with the losses it incurred during the same period last year. The company has attributed this turnaround to a robust increase in revenue. For the second quarter, Spotify has projected even greater gains.

Before trading commenced on the New York Stock Exchange, Spotify's shares had increased by approximately 8.4% to $295.

In the first quarter, Spotify's net income attributable to parent company owners reached 197 million euros, compared with a loss of 225 million euros in the previous year. Earnings per share also saw a significant uptick, coming in at 0.97 euro per share, as compared to last year’s loss of 1.16 euros per share.

Operating income for the period jumped to 167 million euros, a significant improvement from last year's loss of 156 million euros.

Spotify experienced a significant revenue boost of 20%, reaching 3.64 billion euros, up from 3.04 billion euros the previous year. Even on a constant currency basis, overall revenue grew by 21%.

The platform’s Monthly Active Users (MAUs) also increased, surging by 19% to 615 million. Its premium subscriber base grew by 14% to 239 million, which was largely driven by an uptick in Family and Duo plan subscriptions.

Looking ahead to the second quarter, Spotify is estimating operating income of 250 million euros, total revenue of 3.8 billion euros, MAUs reaching 631 million, and premium subscribers totaling 245 million.