According to Refinitiv IBES data, the Swedish music streaming company increased revenue by 23% to 2.9 billion euros ($2.94 billion), beating analysts’ expectations of 2.8 billion euros.
On Wednesday, Spotify reported second-quarter revenue that exceeded analysts’ expectations, aided by a 14 percent increase in paying subscribers as more users listened to its podcasts, and the company forecast an upbeat current quarter.
According to Refinitiv IBES data, the Swedish music streaming company increased revenue by 23% to 2.9 billion euros ($2.94 billion), beating analysts’ expectations of 2.8 billion euros.
The number of premium subscribers, which account for the majority of the company’s revenue, increased to 188 million, exceeding analysts’ expectations of 187 million.
Total monthly active users increased 19% to 433 million. Analysts predicted 428 million.
Spotify, which had been aggressively hiring in the first two quarters, has slowed headcount growth by 25% in the third quarter, while also scrutinizing marketing activity.
In line with expectations, the company forecasts 194 million paid subscribers in the current quarter. Revenue of 3 billion euros is expected, exceeding estimates of 2.95 billion euros.
Spotify has made a large bet on podcasts, spending over a billion dollars to acquire shows like “The Joe Rogan Experience” and other businesses in order to attract users to a growing non-music audio segment.
The company reported that podcast listeners reached a new high in the third quarter, with members selecting from 4.4 million podcasts.
In the third quarter, the company anticipates 450 million total monthly active users.
