People exit the Spotify headquarters building in Lower Manhattan on January 23, 2023 in New York City.
Eduardo Munoz Alvarez | View Press | Corbis News | Getty Images
Spotify Shares were up 9% in early trading Tuesday after the company reported fourth quarter earnings Which beat analysts’ expectations for revenue and showed strong user growth.
Here’s how the company did:
- Loss per share: A loss of 1.40 euros ($1.52) versus an estimated loss of 1.27 euros as expected by analysts, according to Refinitiv
- Revenue: 3.17 billion euros versus 3.16 billion euros expected by analysts, according to Refinitiv
Spotify reported 489 million monthly active users for the quarter, up 20% year over year. Monthly active users grew 33 million net during the quarter, a record high for the company. Spotify also reported 205 million paid subscribers, up 14% from a year earlier.
In its 3rd Quarter Report, the company said it expected to add about 23 million new monthly active users in Q4, bringing its total to 479 million. It also expected to increase its revenue to 3.2 billion euros and post 202 million paid subscribers in the quarter.
Spotify continues to invest in advertising, and its ad-supported revenue grew 14% year over year and accounted for 14% of total revenue. The company said that the growth was driven by podcasting.
Earlier this month, Spotify announced plans Cut 6% of its global workforce as it struggles with a depressed economic climate that has caused consumers and advertisers to limit their spending. About 600 employees have been affected by the reduction.
CEO Daniel Ek wrote Comment to employees, which was posted publicly on the company’s website, and said he “takes full accountability for the moves that got us here today.”
“Ultimately, I was very ambitious in investing ahead of my revenue growth,” he said.