Spotify’s logo prominently appeared on the New York Stock Exchange floor on December 4, 2023, as the company issued an encouraging profit forecast for the fourth quarter, leading to a rise in its stock price during after-hours trading. Despite missing analyst expectations for the third quarter, with earnings per share at 1.45 euros compared to the 1.72 euros forecasted by LSEG and revenue at 3.99 billion euros against the expected 4.02 billion euros, Spotify’s future guidance captured investor attention.
The Swedish music streaming giant projected an operating income of 481 million euros for the fourth quarter, surpassing the average prediction of 432.7 million euros. Additionally, its monthly active user base is set to increase to 665 million, exceeding the anticipated 659.3 million. However, Spotify’s revenue forecast of 4.1 billion euros falls short of the 4.26 billion euros predicted by analysts.
Premium subscribers experienced a notable 12% growth year over year, reaching 252 million and slightly outpacing estimates. Following the earnings announcement, Spotify’s shares jumped approximately 8% in after-hours trading to $452.35 and have more than doubled in value over the current year. The platform continues to establish itself as a vital space for global artists.
Original Story https://www.cnbc.com/2024/11/12/spotify-shares-pop-on-better-than-expected-profit-forecast.html
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