Spotify Technology reported quarterly revenue on Wednesday that beat analysts’ expectations for higher ad revenue, and shares of the audio-streaming platform rose about 30 percent in pre-market trading as more people subscribed to its premium service. 5%.
The company has invested heavily in podcasting, investing more than $1 billion to acquire shows like “The Joe Rogan Experience” and other businesses to lure users into the growing non-music audio segment.
Total monthly active users rose 19% in the first quarter to a record 422 million.
The Swedish company’s revenue for the quarter rose 24 percent to 2.66 billion euros (approximately Rs 21,598 crore). Analysts on average expected revenue of 2.62 billion euros (about Rs 21,271 crore), according to IBES data from Refinitiv.
Spotify said podcasts on its platform grew its share of content consumption by double digits and reached an all-time high in the reported quarter.
The company now expects total monthly active users to hit 428 million in the second quarter, following the shutdown of operations in Russia and a reversal of user churn following a service outage in March.
Spotify forecast second-quarter revenue of 2.8 billion euros (approximately Rs 22,724 crore), compared to estimates of 2.81 billion euros (approximately Rs 22,805 crore).
Premium subscribers, which make up the majority of the company’s revenue, rose from 158 million to 182 million, while ad-supported revenue rose 31 percent to 282 million euros (approximately Rs 2,288 crore).
© Thomson Reuters 2022