- Spotify Technology SA experienced its most substantial increase in value since January following the release of its third-quarter results, which surpassed expectations in terms of sales and subscriber growth, all while the company implemented price hikes. The company's Chief Financial Officer, Paul Vogel, noted that Spotify had reached a pivotal moment in terms of profitability and anticipated further revenue growth in the fourth quarter.
- He mentioned that the platform's podcast business, which had been impacting margins negatively over the past year, would soon achieve a break-even point following the reduction of team members and active production of shows. Spotify reported a 16% increase in premium subscribers, reaching 226 million, exceeding the average estimate of 224.3 million by analysts compiled by Bloomberg. Total revenue, amounting to €3.36 billion, increased by 11%, surpassing expectations of €3.33 billion.
Why it matters
Vogel indicated that subscribers in various regions grew as expected, even though the company had raised prices on select plans by $1 per month. CEO Daniel Ek expressed his satisfaction, stating that the price hike had performed well and, in fact, modestly exceeded their expectations. Total active users surged by 26% to reach 574 million.