Spotify shares rally 16% after Q1 gross profit tops 1 billion euros

The institution posted operating nett of 168 cardinal euros ($179 million) for the archetypal 4th -- a turnaround from a nonaccomplishment of 156 cardinal euros implicit the aforesaid play past year.

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The Swedish company, listed connected the New York Stock Exchange (NYSE), was trading astatine $311.01, higher $38.77, oregon 14.24 per cent, astatine 11:47 a.m. EDT.

Spotify said the operating profit, little than its guidance of 180 cardinal euros, had been impacted by higher-than-expected payroll taxes which are tied to share-based compensations. 

Its gross roseate 20 per cent year-on-year to 3.6 cardinal euros, but was down 1 per cent quarter-on-quarter.

At the extremity of the archetypal quarter, the euphony streaming elephantine had 615 cardinal progressive users, conscionable abbreviated of its guidance of 618 million. Some 239 cardinal were paid users.

In 2023, it introduced audiobooks to subscription plans and has since expanded into six markets.

Spotify said the concern had “performed well" successful the quarter, “led by steadfast subscriber gains, improved monetization and grounds spot successful profitability." 

“Overall, we are encouraged by the beardown commencement to the year," the institution said successful its net report.

“We are going to adhd backmost immoderate selling walk implicit the year," CEO Daniel Ek said successful an interview. “Because we privation to support connected having the maturation and we saw that successful immoderate territories, we whitethorn person pulled backmost a small spot excessively much."

For the 2nd 4th of the year, Spotify forecast an operating nett of 250 cardinal euros and 631 cardinal progressive users, including 245 cardinal premium subscribers.

In December 2023, Spotify had announced jobs chopped by astir 17 per cent successful a bid to trim costs.

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Published: 23 Apr 2024, 09:30 PM IST